South America Nitric acid Market Outlook, 2030

The market for nitric acid in South America has developed alongside the growth of agriculture, increased mining activities, and broader industrial sectors. Traditionally dependent on imports from Europe and North America, nations such as Brazil, Argentina, and Chile began to establish their own nitric acid manufacturing facilities in the late 20th century to bolster fertilizer production and diminish supply chain risks. In Brazil, which is the agricultural leader in the area, nitric acid is mainly used to create ammonium nitrate and calcium ammonium nitrate fertilizers, which are crucial for crops and horticulture. Meanwhile, in Chile and Peru, nitric acid is vital for producing explosives, especially for extracting copper and lithium, while Argentina and Colombia employ it for chemical intermediates and nitration processes in pharmaceuticals and polymers. In a technical sense, nitric acid is utilized in South America in a concentrated form 68-70% for nitration and explosives, whereas dilute variations are used for blending fertilizers and cleaning in industries. Local manufacturers have modified technologies to match regional raw materials, frequently employing ammonia derived from natural gas and enhancing energy efficiency to cut costs. Research and development activities, though not as extensive as in Europe, aim at controlling emissions, recovering acid, and designing modular plants to cater to localized demand. Environmental regulations are dictated by national laws such as Brazil’s CONAMA regulations, Argentina’s Law 24.051, and Chile’s Superintendencia del Medio Ambiente SMA, which enforce limits on NOₓ emissions and ensure safe handling of chemicals. Export-focused manufacturers also comply with ISO 14001 and ISO 45001 standards to adhere to safety and environmental requirements. These guidelines tackle issues like air pollution, workplace safety, and product traceability, improving trust in international markets. As South America progresses with industrialization and greener agricultural practices, nitric acid continues to be an important chemical, linking local requirements with export strategies and sustainability objectives.

According to the research report, "" South America Nitric Acid Market Outlook, 2030,"" published by Bonafide Research, the South America Nitric Acid market is anticipated to add to USD 280 Million by 2025–30. This increase is due to rise in agricultural land usage, higher needs for explosives in mining, and initiatives within the region to establish localized chemical supply networks. Brazil is at the forefront, with organizations like Petrobras and Unigel investing in the integration of ammonia-based raw materials to bolster local nitric acid production for use in fertilizers. In Argentina, Profertil has modernized its nitric acid production facilities to enhance energy efficiency and decrease NOₓ emissions, in line with the country's environmental regulations. Enaex in Chile has boosted its nitric acid production capabilities to fulfill the rising demand for ammonium nitrate explosives used in the critical mining of copper and lithium for the energy transition. These advancements illustrate a strategic move towards greater self-reliance, especially in light of the instability of supply chains. The primary applications for nitric acid in South America encompass fertilizer manufacturing, mining explosives, and chemical precursors for local industries. There are significant opportunities in precision farming, where fertilizers derived from nitric acid are being specialized for tropical climates and resilient crops. In the mining sector, a surge in exploration activities in Peru, Chile, and Brazil is increasing the demand for blasting materials, with nitric acid being an essential component. Local governments are also promoting domestic chemical production to lessen reliance on imports, paving the way for small-scale nitric acid production facilities and locally sourced materials. Adhering to these guidelines helps reduce environmental hazards while also improving credibility for exports, particularly for those targeting markets in North America and Europe.

Market Drivers

• Growth in Agriculture and Demand for Fertilizers:The agricultural landscape in South America especially in Brazil, Argentina, and Paraguay is growing to satisfy needs for food and biofuels. Nitric acid plays an essential role as a precursor for ammonium nitrate AN and calcium ammonium nitrate CAN, commonly employed in crops such as cereals, sugarcane, and soybeans. Brazil’s MAPA Ministry of Agriculture advocates for better nitrogen use and local fertilizer production, thus increasing the need for nitric acid in both bulk and specialized forms. The tropical soils in this region need customized nutrient mixes, and nitric acid aids in precise nitrogen application, particularly for high-value crops.
• Expansion of the Mining Sector and Increase in Explosives Need:Countries such as Chile, Peru, and Brazil are enhancing their extraction of copper, lithium, and iron ore to address energy demands. Nitric acid is crucial for the production of AN-based explosives utilized in mining operations. With the rising demand for lithium in electric vehicle batteries, the use of nitric acid in mining is climbing significantly. Companies like Enaex Chile and Orica Peru/Brazil are increasing their integration of nitric acid into their explosives supply chains, encouraged by government support for mining modernization and local value.

Market Challenges

• Dependency on Imports and Fluctuating Feedstock Prices:Numerous South American nations lack local ammonia production, which forces nitric acid producers to depend on imported ammonia or nitric acid itself. This reliance exposes them to fluctuations in prices, delays in shipping, and variations in currency exchange rates. Brazil and Argentina are working to develop domestic ammonia production, but shortcomings persist particularly in smaller nations such as Bolivia and Ecuador.
• Compliance with Environmental Regulations and Infrastructure Limitations:While nations like Brazil CONAMA, Argentina Law 24.051, and Chile SMA enforce environmental and chemical safety laws, adherence varies. Older nitric acid facilities frequently do not have nitrogen oxide NOₓ reduction technologies e.g., SCR/NSCR, and rural or mining-related sites may operate with minimal supervision. This situation creates reputational and operational risks, especially for companies focused on exports.

Market Trends

• Development of Localized and Modular Production Facilities:To lessen reliance on imports and enhance supply chain strength, countries like Brazil and Argentina are encouraging local production of nitric acid. They are investigating modular plants that are small to medium-scale and utilize locally sourced natural gas or biogas-based ammonia. These smaller units are particularly ideal for agricultural and mining regions, lowering both transportation costs and emissions.
• Focus on Sustainability and Certification for Exports:Manufacturers are increasingly implementing ISO 14001 environmental management and ISO 45001 occupational health and safety standards to fulfill international customer expectations. This is particularly important for nitric acid utilized in fertilizers and explosives that are exported to North America and Europe. Environmental Product Declarations EPDs and lifecycle assessments are gaining popularity, especially in Chile and Brazil, where ESG reporting is becoming essential for competitive advantage.

The concentrated nitric acid market is the most rapidly developing area in South America, thanks to its crucial role in mining explosives and the synthesis of high-value chemicals, which aligns with local industrial and resource extraction needs.

In South America, the area of concentrated nitric acid, which usually has purity levels of 68% to 98%, is the fastest-growing market, fueled by its vital functions in mining, explosives, and the production of specialty chemicals. Nations such as Chile, Peru, and Brazil are increasing their extraction of copper, lithium, and iron ore to satisfy the demand for materials needed for energy transition. Concentrated nitric acid plays a significant role in producing ammonium nitrate-based explosives, essential for blasting in both open-pit and underground mining operations. Companies like Enaex in Chile and Orica in Peru have enhanced their nitric acid integration to support the formulation of explosives, while Brazil’s Vale and CSN depend on local supplies to ensure their operations run smoothly. Apart from mining, concentrated nitric acid is involved in nitration processes for creating nitroaromatics, polymers, and intermediates for pharmaceuticals industries that are expanding in Argentina and Colombia. The sector also gains from regional initiatives aimed at reducing import reliance by creating modular nitric acid facilities that prioritize concentrated grades for both economic and logistical efficiency. In terms of chemical properties, concentrated nitric acid has greater reactivity and energy density, making it ideal for downstream synthesis and industrial uses. Manufacturers are modifying technologies to suit local feedstocks like ammonia sourced from natural gas, and are putting emission control measures in place to comply with national environmental regulations, such as Brazil’s CONAMA and Chile’s SMA. Export-focused producers are also working towards ISO 14001 and ISO 45001 compliance to meet safety and environmental standards. Such certifications boost credibility and facilitate entry into North American and European markets. As South America continues to develop and expand its resource capabilities, concentrated nitric acid remains the preferred option providing versatility, strategic importance, and compatibility with both domestic needs and export growth.

The application of Toluene di-isocyanate TDI is rapidly expanding in South America's nitric acid market because of the increased need for flexible polyurethane foams in the automotive, furniture, and construction industries, driven by regional industrial growth and housing development.

In South America, the Toluene Di-Isocyanate TDI sector is becoming the quickest expanding application within the nitric acid market, mainly due to its crucial function in creating flexible polyurethane foams. These foams are widely utilized in vehicle seating, mattresses, furniture, and insulation industries experiencing solid growth throughout Brazil, Argentina, and Colombia. Nitric acid is an essential precursor for the nitration of toluene, which is then transformed into TDI, rendering it vital for the creation of polyurethane. Brazil’s automotive sector, the largest in the region, is increasingly incorporating lightweight and robust polyurethane elements to achieve fuel efficiency and emissions standards. At the same time, the construction boom in the area heightened by urban growth and housing initiatives has increased the need for insulation materials, where TDI-based foams deliver excellent thermal efficiency. Argentina’s chemical industry, dominated by companies like Profertil and Dow Argentina, is broadening its range of polyurethane products, intertwining nitric acid supply chains to guarantee reliability and adherence to regulations. Colombia and Chile are also experiencing a rise in TDI usage in the furniture and bedding sectors, propelled by growing middle-class expenditure and home renovation trends following the pandemic. Local manufacturers are investing in eco-friendly formulations and emission reduction technologies to comply with national environmental guidelines and achieve ISO 14001 and 45001 certifications. These initiatives bolster export ambitions, particularly to North America and Europe, where there is a demand for low-VOC and recyclable polyurethane materials. The strategic significance of TDI in high-value manufacturing, coupled with nitric acid's role in its production, establishes this application as the rapidly growing area in South America. This indicates a wider transition from basic chemical use towards specialized, high-profit segments that match industrial growth and sustainability objectives.

The explosives sector represents the fastest-growing end-use area in the nitric acid market of South America due to increasing needs from mining activities focusing on copper, lithium, and iron ore essential components for energy and infrastructure supply chains.

In South America, the fastest-growing end-use sector for nitric acid is the explosives industry, fueled by the rapid growth in mining and resource extraction throughout the region. Nitric acid serves as a crucial ingredient for making ammonium nitrate explosives, which are vital for blasting in both open-pit and underground mines. Nations such as Chile, Peru, and Brazil are boosting their copper and lithium production to fulfill the rising needs for electric vehicles, batteries, and renewable energy projects. Companies like Enaex in Chile and Orica in Peru have increased their nitric acid production capabilities to cater to the demand for explosive formulations, while Vale and CSN in Brazil depend on local supplies for maintaining their operations. The geological conditions abundant in hard rock formations call for high-energy explosives, leading to a heightened reliance on nitric acid. Furthermore, pending infrastructure developments such as tunnels, highways, and hydroelectric facilities are driving the demand for explosives even higher. To decrease reliance on imports and enhance supply chain stability, governments are encouraging local production of chemical materials, particularly in isolated mining areas. Responding to this trend, nitric acid manufacturers are constructing modular plants close to mining routes, which improves logistics and lowers environmental effects. Adhering to national safety and environmental regulations such as Brazil’s CONAMA and Chile’s SMA compels producers to implement NOₓ reduction technologies and practices that meet ISO certification. These efforts not only lessen hazards but also bolster the credibility of exports for explosives-grade nitric acid. The segment's expansion is indicative of a mix of industrial, geopolitical, and sustainability factors that are characteristic of South America. As industries increasingly depend on this region for vital minerals, nitric acid plays a critical role in facilitating safe and efficient extraction, making the explosives sector the most vibrant and strategically important end-use area.

Brazil dominates the nitric acid sector in South America thanks to its extensive agricultural practices, interconnected ammonia production, and growing domestic fertilizer and industrial chemicals capacity.

Brazil stands at the forefront of the South American nitric acid market, primarily due to its strong agricultural industry that creates a steady need for nitrate-rich fertilizers, including ammonium nitrate and calcium ammonium nitrate. Being the top exporter ly of commodities like soybeans, sugarcane, and coffee, Brazil depends significantly on inputs derived from nitric acid to preserve soil quality and improve crop production across its large tropical and subtropical regions. This requirement is bolstered by local ammonia manufacturing, as firms such as Petrobras and Unigel enhance upstream operations to lessen dependency on foreign supplies and secure feedstock availability. Brazil's chemical complexes, like the one in Camaçari, Bahia, contain integrated plants that produce both nitric acid and ammonia as well as urea, promoting efficient production methods and smooth logistical operations. Furthermore, the nation is increasing the use of nitric acid in producing explosives, especially for the extraction of iron ore, bauxite, and rare earth minerals in Pará and Minas Gerais. Local companies like Vale and CSN are employing nitric acid-based explosives to aid in their mining activities, while fertilizer manufacturers such as Yara Brasil and Heringer are boosting their use of nitric acid for specialized products. Brazil's regulatory agencies, notably CONAMA and ANVISA, impose regulations on NOₓ emissions and chemical safety, leading manufacturers to implement SCR/NSCR technologies and adhere to ISO standards. These initiatives promote environmental responsibility and enhance readiness for exports, particularly for nitric acid employed in agrochemicals and industrial uses. Brazil's national fertilizer strategy and subsidies for domestic chemical production are propelling investments in smaller nitric acid facilities and green ammonia projects. Consequently, Brazil not only excels in production volume but also possesses superior infrastructure, regulatory coherence, and strategic growth, establishing itself as the central hub of South America’s nitric acid industry.


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