Iodine is a non-metallic element with some metallic properties and a wide variety of medical and industrial applications. Iodine is also considered to be an indispensible element of thyroid hormones. Iodine lack thereof is detrimental for multiple processes and normal functioning of the human body. Its recommended daily allowance is 150µg. According to the WHO, iodine deficiency is the world’s most prevalent, yet easily preventable, cause of brain damage, while 54 countries are still iodine-deficient. Thus, the WHO takes active measures to strengthen sustainable salt iodization programmes. Iodine is therefore widely applied in human and animal nutrition, which acts as one of its main consumption areas. Other major uses of iodine and its derivatives include diagnostic contrast-media, pharmaceuticals, optical polarizing films (OPF), iodophors and biocides and other. OPF and biocide application in water treatment are considered highly prospective iodine-consuming sectors in future.
Global crude iodine production was estimated at around 33,500 tonnes in 2014. Chile and Japan are the two main iodine producers – together they account for 91% of global total. Chile is also a main exporter of this product. Chilean and Japanese companies dominate in global iodine production. SQM, ACF Minera, Algorta Norte, Iofina plc and Sirocco Mining (RB Energy) are among largest market players.
Iodine is primarily retrieved from underground brines or as a by-product with nitrate in caliche deposits. Chile’s production of iodine is from the latter source. The above-mentioned iodine market features determine its dependence on several factors. As iodine production is heavily monopolized, the iodine-related situation in any of its key production centres is of great significance. For instance, water shortages in Chile could spur iodine price rise. Likewise, the Fukushima nuclear plant disaster in March 2011 was responsible for raising demand for iodine potassium pills. These features confirm that the global iodine market could be rather volatile with upsurges in demand and prices. Such demand spikes are also backed by the fact that no comparable substitutes exist for iodine in many of its principal applications, such as in animal feed, catalytic, nutritional, pharmaceutical, and photographic uses. Global iodine production will therefore increase to meet the expected iodine demand. New capacity additions are considered to take place in near future. Japanese producers have no plans to expand crude iodine capacity but may increase secondary iodine production. World iodine demand is forecast to increase by an average of around 3.5% and reach 39,800 tonnes during the next five years.
More information on the iodine market can be found in the in-demand research study “Iodine: 2016 World Market Review and Forecast”.