[Minor metal] Sulfuric Acid Prices Continue to Fall This Week

SHANGHAI, May 21 (CBI China) -- Domestic sulfuric acid prices continued to fall this week. Currently, traded prices have fallen below RMB 100/mt for 98% sulfuric acid in East China and Central China, while prices remained high in South China and Southwest, with prices at RMB 200/mt for 98% sulfuric acid in South China and prices at RMB 300/mt in Southwest.

    Recently, sulfuric acid imports contributed to the falling price of sulfuric acid in South China markets. According to some insiders, the import volumes of sulfuric acid soared since May, and FOB prices have fallen to RMB 95/mt, exerting great impact on the sulfuric acid producers in coastal areas. Besides, declines in domestic demand for sulfuric acid remained one major reason for the falling prices. Demand for sulfuric acid became weak since domestic fertilizer market entered off-peak season in late April. However, fertilizer demand accounted for about 60-70% of the total demand for sulfuric acid. In this context, domestic sulfuric acid prices continued to fall.

    Sulfuric acid prices have fallen below RMB 100/mt in South China, so any downward room for the prices will be limited. However, operating rates at smelters in Japan and South Korea remained high, and will maintain current level during May and June, so the sulfuric sales will remain weak, and a portion of smelters with higher cost will have to lower their operating rates.

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