[Minor metal] Sulfuric Acid Prices Still in Downward Track

SHANGHAI, June 5 (CBI China) -- Domestic sulfuric acid prices continued to fall this week, and the ex-works price for 98% sulfuric acid has been lower than RMB 100/mt, and the relevant market insiders said current price has fallen to the lowest level over past 10 years.

    Market analysts said there are three reasons for recent sluggish sulfuric acid price: first, as demand for sulfuric acid is mainly from fertilizer industry, the ammonium phosphate sector remained depressed recently, exerting negative impact on the deliveries at sulfuric acid factories; besides, domestic smelters kept relatively high operating rates due to high copper price, leading to large output of smelter acid and exerting huge pressure on sulfonic acid.

    Second, cumulative imports of sulfuric acid from January to April were 1.143 million mt, up 68.3% on a yearly basis; its average FOB price was USD 16.1/mt (the actual traded prices were even as low as USD 6-8/mt). Hence, the large volumes of imported sulfuric acid entered domestic market, exerting negative influence on domestic sulfuric acid price.

    Third, domestic sulfur sector failed to bottom out after sharp declines in sulfur price last year, but remained weak, dragging down the sulfuric acid prices.

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