Ammonium Nitrate Market

The global ammonium nitrate market is expected to register a CAGR of 3.09% during the review period. The increasing mining activities due to the growing demand for metals and minerals in various industries is expected to boost the growth of the global market. Likewise, the growing use of the product in the medical industry is expected to create lucrative opportunities for the participants operating in the global market. However, stringent regulations by the Environmental Protection Agency (EPA) and Occupational Health and Safety (OSHA) are likely to hamper the global market growth during the forecast period.

The growing urbanization and population have increased the demand for metals and minerals in industries such as automotive and electronics. Various metals such as copper, silver, gold, palladium, and platinum are mined using high-tech explosives and breakthrough technologies. The digitally enabled and automated blasting properties of explosives are benefiting the global mining industry. To remain competitive, mining companies require innovative designs and technologies that enhance the efficiency, capability, and reliability of mining operations responsible for analyzing, sensing, extraction, and refinement. Increasing investments by the mining companies to explore new mining sites for valuable metals and minerals is expected to propel the global market growth. The increase in mining activities is expected to increase the demand for explosives and consequently the demand for ammonium nitrate.

Ammonium nitrate is a strong oxidant used as a blasting agent in explosives. It is widely used as a bulk industrial explosive in prill form in ammonium nitrate/fuel oil (ANFO or AN/FO)-based products and in a broad range of customized bulk explosive blends. ANFO contains 94% ammonium nitrate and 6% fuel oil and is widely used in coal mining, quarrying, and mineral mining applications. Solid ammonium nitrate decomposes rapidly in two gases, namely nitrous oxide and water vapor. As a strong oxidant, it readily reacts with combustible materials. It is also used to modify the detonation levels of other explosives. In Australia, ammonium nitrate is largely consumed in explosives than fertilizers. Technical ammonium nitrates (TAN) are essential oxidizers that find applications in the manufacturing of civil explosives for blasting operations. South Africa registers considerable demand for ammonium nitrate owing to the significant presence of metal mining base and increasing quarrying operations. High detonation velocity and excellent water resistance properties, as well as increasing metal mining operations are factors expected to boost the demand for ammonium nitrate and drive the global market growth during the forecast period.

Ammonium nitrate is majorly used for general anesthesia in surgeries and dentistry. Ammonium nitrate is decomposed to form nitrous oxide (N2O) and water. It is used in the production of nitrous oxide which is also known as laughing gas. N2O is used as a propellant for drugs packaged in aerosols, and analgesic and anesthetic in surgical and dental operations. Nitrous gas requires a constant supply of ammonium nitrate. N2O is precisely dosed and is mixed with oxygen in a 2:1 ratio for general anesthesia. It is largely used to facilitate general anesthesia in surgeries and the dentistry sector uses nitrous oxide in ambulatory clinics. Furthermore, in veterinary clinics, laughing gas is used as urinary acidifier and expectorant. Inhalation of N2O also helps in relieving pain associated with labor, trauma, and acute coronary syndrome. Solid ammonium nitrate is best suited for pharmaceutical, dental, and surgical applications.

Thus, the increasing use of ammonium nitrate in the medical industry is likely to create lucrative opportunities for players operating in the global market.

Ammonium nitrate is not harmful under normal handling conditions but can be very dangerous when brought in contact with organic combustible substances (wood, paper, and oil). Ammonium nitrate tends to explode under extreme conditions of heat and pressure in a confined place. There are two grades of ammonium nitrate—technical grade ammonium nitrate (TGAN) and fertilizer grade (FGN). The two forms are chemically similar and display the same hazards when exposed to heat. It is considered as a hazardous chemical under the OSHA. The OSHA regulates the manufacturing, storage, handling, sale, transportation, and use of ammonium nitrate in explosives and blasting agents. There are other regulatory and industry initiatives regarding the control of the storage and distribution of ammonium nitrate as a fertilizer or explosive, for instance, the US EPA and the Bureau of Alcohol, Tobacco and Firearms (ATF). These regulations are imposed to avoid accidents and misuse of the product.

Government authorities in countries such as Australia, the US, and the UK are imposing regulations to either safeguard the handling chain or restrict the availability of ammonium nitrate. Several countries have banned the use of ammonium nitrate as a fertilizer due to safety issues. Explosion of stored ammonium nitrate is responsible for some of the worst chemical disasters on record. However, avoiding heating of ammonium nitrate prills in a confined space, avoiding contamination with combustible and inorganic materials, and maintaining warehouse dimension are factors likely to help in preventing accidents.