Prospects for China's potassium nitrate

Potassium nitrate is a high-quality nitrogen-potassium binary compound fertilizer and inorganic chemical products. It is widely used in agriculture, chemical industry, medicine, military industry and other industries. According to specific applications, potassium nitrate is divided into industrial grade potassium nitrate and agricultural grade potassium nitrate. Industrial grade potassium nitrate is a raw material for the manufacture of black powder, and can also be used in the fields of fireworks manufacturing, glass clarifiers, pharmaceuticals, low-temperature energy storage molten salts and solar energy storage. Agricultural grade potassium nitrate is mainly used as fertilizer, which can be directly applied or made into high-end water-soluble compound fertilizer and special fertilizer.

China's potassium Nitrate production capacity ranks first in the world, and is dominated by secondary processing

The world's potassium nitrate production is mainly concentrated in Israel, Chile, China and other countries. In recent years, due to the continuous growth of market demand for potassium nitrate in China, especially the continuous development of the agricultural potassium nitrate market, China's potassium nitrate industry has developed rapidly. In the early 1990s, China's annual output of potassium nitrate was less than 50,000 tons. By 2008, China had developed into a large country with a production capacity of close to 950,000 tons/year, with the largest single potassium nitrate production unit reaching 50,000 tons/year. In 2019, China's potassium nitrate production capacity was 2.458 million tons/year, and a single potassium nitrate production line had reached 100,000 tons/year, and there were companies with a production capacity of more than 300,000 tons/year. At present, China's potassium nitrate production capacity ranks first in the world.

In terms of production, at present, only Chile in the world uses natural potassium nitrate mineral resources to produce potassium nitrate. Potassium nitrate in other countries and regions is produced through chemical conversion. my country is short of potash resources, and most of the production of potassium nitrate uses potassium chloride as a raw material. The domestic potassium chloride production capacity is concentrated in Qinghai and Xinjiang, which are rich in potassium salt resources. In addition to domestic production, my country also needs to import a large amount of potassium chloride every year to meet domestic demand. In 2019, the import dependence of potassium chloride reached 48.5%.

As a processing potash fertilizer, potassium nitrate has a wide distribution of production capacity. There are production companies in Shandong, Qinghai, Hunan, Shanxi, Jiangxi, Sichuan, Yunnan and other provinces. Among them, Qinghai Salt Lake and Wentong Potash Group are the domestic enterprises with the largest potassium nitrate production capacity, each with a production capacity of 300,000 tons/year; Zhejiang Lianda Chemical, Jiangxi Jinlida Potash Industry and Jiaocheng Bingsheng Chemical also reached 200,000 tons/year Over years.

The ammonium nitrate-potassium chloride double decomposition cycle method is the main technology for the production of potassium nitrate in my country. There is no waste gas, waste water, or waste residue in the production process of this technology, and zero emissions can be achieved. The disadvantage is the low crystallization rate of potassium nitrate, and the poor cooling and crystallization effect of potassium nitrate. In addition, the ammonium nitrate-potassium chloride ion exchange method is also one of the main potassium nitrate production technologies in my country. This technology uses potassium chloride and ammonium nitrate solutions to generate potassium nitrate and Ammonium Chloride solutions through an ion exchange method. This technology has the advantages of high potassium nitrate effluent solution purity, short process flow, simple equipment, continuous operation and low raw material cost. The disadvantage is that the concentration of the exchanged solution is low, the evaporation cost is high, and ammonium chloride is corrosive to the equipment. The requirements are higher.

Potassium nitrate is mainly exported, with nearly 40% exported to neighboring Asian countries

In terms of import and export, my country is a net exporter of potassium nitrate, and imports are relatively small. In 2015, the import volume was 23,000 tons. Since then, the import volume has plummeted to below 10,000 tons. With the increase of my country's potassium nitrate production capacity, my country's potassium nitrate exports have increased significantly after 2017. At present, the potassium nitrate products produced by domestic enterprises can already meet most of the domestic demand, and the import volume remains at a low level.

In terms of exporting provinces, Shandong Province has the largest export volume in 2019, accounting for 40% of the total export volume, followed by Shanghai, Sichuan and Zhejiang. Southeast Asia and South Asia have always been China's traditional export markets. Of the potassium nitrate exported from China, 38% of China's exports to Asia are the largest export regions. Followed by Africa, exports accounted for 20%. Europe, Oceania and Latin America account for the average, at 11%~15%. Exports to North America are the smallest, accounting for only 4% of total exports, mainly because North America is rich in potash resources.

Demand is concentrated in the agricultural sector, which is expected to maintain growth in the future

In terms of demand, my country's potassium nitrate is mainly used in agriculture, accounting for about 75%. Among them, tobacco special fertilizer is the field with the largest amount of potassium nitrate, accounting for 45%.

my country's agricultural potassium nitrate demand areas are relatively concentrated. The southwest region has the largest demand for agricultural potassium nitrate. The southwest region has good hydrothermal conditions, strong leaching, high soil acidity, and low potassium content. At present, the domestic market for new fertilizers such as nitro-based fertilizers and water-soluble fertilizers is gradually being favored by downstream users. In addition, the country has vigorously promoted them, and the market for nitro-based fertilizers and water-soluble fertilizers is in good shape.

Potassium nitrate has the characteristics of strong solubility, no volatility, and rapid nutrient absorption by crops. It is convenient to apply, can be directly applied to the soil surface without covering, can be applied to crops in all seasons, and is widely used in water-soluble fertilizers, drip irrigation fertilizers, and foliar fertilizers, and has a large market demand in water-deficient areas. However, due to the high price of potassium nitrate, which is much higher than that of ordinary nitrogen and potassium compound fertilizers, some growers may consider using cheap potassium sulfate and ordinary compound fertilizer instead.

The demand for potassium nitrate in the industrial sector has been stable at around 25%. Restricted by the announcement of "prohibition of the sale of fireworks and firecrackers" issued in many places across the country in recent years, the demand for potassium nitrate in the fireworks industry has decreased. But the demand for light-heat molten salt will drive the growth of industrial potassium nitrate demand. In the first batch of 20 CSP demonstration projects, 18 adopted molten salt energy storage. A 50 kwh CSP project generally requires 16,000 tons of molten salt. Based on the current general binary molten salt system (60% sodium nitrate + 40% potassium nitrate), it requires 6,400 tons of potassium nitrate.

On the whole, the agricultural demand and industrial demand of potassium nitrate will show an increasing trend, and the growth is mainly based on agricultural demand.

With the adjustment of my country's planting structure, high-efficiency agriculture will receive strong support from the state, and agricultural planting will also become more specialized, standardized and efficient. Therefore, the demand for high-end fertilizers will continue to grow. With the implementation of urbanization and rural land transfer, land will become more centralized. The accelerated layout of water and fertilizer integration will promote the growth of my country's water-soluble fertilizer demand. As a raw material for water-soluble fertilizer, potassium nitrate has the advantages of high nutrient content, good water solubility, and no residue after fertilization, which will not cause soil compaction. In addition, the development of my country's high value-added cash crops will also boost the demand for potassium nitrate. In addition to special fertilizers for tobacco, my country's high-end economic crops, including tea, flowers, fruits, etc., have huge demand for potassium nitrate. It is expected that the demand for potassium nitrate for agriculture will continue to grow in the future.

In terms of industrial application, with the advancement of the solar thermal molten salt project, the demand for potassium nitrate will be driven. At present, my country's CSP industry is still in its infancy, and future photovoltaic power station projects will accelerate with the policy drive. In addition to domestic solar thermal projects, my country has also participated in the construction of some international projects. In the future, the demand for industrial potassium nitrate in the international market will also promote the development of the domestic potassium nitrate industry. Overall, the demand for potassium nitrate in my country will continue to grow in the future.