[Minor metal] Declines in Sulfuric Acid Price Slow

SHANGHAI, May 27 (CBI China) -- Domestic sulfuric acid prices have fallen for one month, and maintained downward trend over this week. However, the declines in the price have slowed compared to previous weeks. Sulfuric acid price fell by RMB 20/mt.

    Recently, a portion of Chinese nonferrous metal enterprises held a meeting in Shanghai and reached a consensus on the anti-dumping investigations on sulfuric acid imports from Japan and South Korea. The market insiders made an analysis: Chinese total output of sulfuric acid reached 52.5 million mt in 2008, while the total imports were 1.6 million mt, accounting for 3% of Chinese total output. However, the sulfuric acid imported from Japan and South Korea was mainly smelting acid, and the smelting acid imports account for about 10% of Chinese total output of smelting acid; while sulfuric acid imports were 870kt from January to March in 2009, accounting for more than 50% of the total imports in 2008, indicating most of smelting acid in Japan and South Korea was imported to China, coupled with its low price, exerting negative impact on domestic sulfuric acid market.

    A new round of low prices occurred in sulfuric acid market along with weak market conditions, and the downstream fertilizer producers reported no improvement, depressed sulfuric acid producers. There was almost no pyrite-based sulfuric acid plants existing in the market, and sulfur-based sulfuric acid plants faced great difficulties, while only off-gas-based sulfuric acid plants maintained normal production, but the price continued to fall, so the sulfuric acid producers can barely acquire profit margins currently.

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