SMM Analysis Of China Sulphuric Acid Export Market

Published: Sep 13, 2023 13:46

Source: SMM

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SHANGHAI, Sep 13 (SMM) – Sulphuric acid, an essential industrial ingredient, is widely used in numerous sectors, including the production of fertilizers, medicines, explosives, pigments, detergents, and batteries. It also finds use in purifying petroleum, metal smelting, and the dye industry.

In 2022, China exported about 3.643 million mt and imported nearly 275,000 mt of sulphuric acid. The top three recipients of China's sulphuric acid exports were Chile, Morocco, and India.

China exported approximately 1.279 million mt of sulphuric acid to Chile, accounting for 35.1% of total exports; around 912,000 mt to Morocco, making up 25.0% of total exports; and about 430,200 mt to India, taking up 11.8% of total exports.

The high demand in Chile, primarily due to its mining industry's extensive use of solvent extraction-electrowinning technology, necessitates large amounts of sulphuric acid. As per the National Copper Corporation of Chile, the country consumes around 8.5 million mt of sulphuric acid each year, with about 40% of it being imported.

Morocco, home to the world's largest phosphate reserves, extensively uses sulphuric acid in its smelting activities. Meanwhile, India's burgeoning economy, fueled by the growth of sectors like pharmaceuticals, fertilizers, pigments, and batteries, has increased the demand for sulphuric acid. Yet, due to technical and equipment constraints, India's domestic sulphuric acid production falls short of its escalating demand, making it heavily dependent on imports, particularly from China.

Customs data reveals that between January and July 2023, China exported an accumulated 1.463 million mt of sulphuric acid. Indonesia, Saudi Arabia, and Chile were the top recipients. The sulphuric acid exports to Indonesia within this seven-month period, totaling 426,000 mt, already exceeded the total amount exported to the country in the previous year.

SMM reports that Indonesia's expanding wet-process nickel-cobalt smelting is driving a surge in sulphuric acid demand. In contrast, exports to Morocco have dropped significantly due to subpar fertilizer prices earlier in the year, leading to a shift in phosphate use from fertilizer to lithium iron carbonate production, reducing sulphuric acid demand. With China's sulphuric acid supply expected to increase considerably and domestic demand not keeping up, creating a surplus, exports are becoming an attractive avenue for acid companies. Additionally, the rising phosphorous fertilizer capacities in neighboring countries like Indonesia, India, and Vietnam will boost their sulphuric acid requirements. China's geographical advantage, offering easier maritime transportation to Southeast and South Asia, benefits its sulphuric acid exports, leading SMM to forecast an uptick in export volumes.

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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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