METHODOLOGY
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Sulphuric Acid Methodology
Sulphuric acid is a strong mineral acid with a wide range of uses in industry. Pure sulphuric acid is a colorless, viscous liquid that can cause severe burns and serious eye and skin damage, and is therefore classified as corrosive or hazardous.
ABOUT SULPHURIC ACID
A key use of sulphuric acid is for the production of fertilizers. Other uses include the production of carbon disulphide, sulphur dioxide and phosphorous pentasulphide; pulp and paper; and rubber vulcanizing. Sulphuric acid can also be used in its diluted form as battery acid for the automotive sector.
Sulphuric acid is colorless in appearance and of an oily liquid consistency. It is both corrosive and toxic and has the ability to cause serious burns. In addition, it is harmful through inhalation, ingestion, and skin contact.
MARKET OVERVIEW
Updated to Q2 2021
Asia
Availability was cripplingly tight in Q2. Large volumes of acid were placed on contract following a fractious 2020, and a lack of feedstock sulphur led to a fall in run rates at sulphur burners which further tightened the market.
Demand was stable for Asian tonnes in Q2 as the global sulphuric acid market turned bullish on tight supply and buyers slowed purchases.
Europe
Supply tightened in Q2 on a lack of availability in burner feedstock, liquid sulphur. Run rates at sulphur burners were heavily restricted by a shortage throughout the quarter, which pressured smelter acid suppliers and led to higher prices for both.
Demand increased in Q2 as supplies of burner acid tightened on a lack of feedstock sulphur. As buyers that usually rely on burner acid suppliers looked for new sources of acid, smelters and distributors were overwhelmed by the demand.
US
The US market, which was already tight after February’s major US Gulf freeze, received little reprieve during Q2. Although some regions of the country came closer to a balanced situation during Q2, Vale had to idle its Sudbury operations in Canada due to an employee strike. This put the US into an extremely tight supply situation, and a spate of smaller production problems was heard across the region as well.
Demand, although not at its strongest point of the year, was stressed during Q2 due to the severe shortages in products. With much domestic production offline, demand shifted more strongly to the import market, although European tonnes were in short supply as well. This left Asia as a source, which would likely hike prices significantly higher.