Will Powerhouse Market China Become a Net Exporter of Sulphuric Acid?

LONDON, May 6, 2015 /PRNewswire/ --

Sulphuric acid production growth, primarily from metals smelter capacity additions, could lead to China becoming a net-exporter of sulphuric acid. Over the past four years, sulphuric acid production from smelters alone in China has ballooned by 6 million tonnes, while total supply from all forms of production is up by 16 million tonnes.

Despite the growth in domestic acid production, China remains a key market for global sulphuric acid trade. Imports total around 1 million tonnes of sulphuric acid each year for the fertilizer and industrial chemicals sectors, to meet growing domestic demand. Smelter acid from South Korea and Japan are the key sources of imports. Throughout the research for Integer Research's new Sulphuric Acid Market Service, we delved into the impact of the future supply/demand acid balance in China on global trade.

Only around 7% of global sulphuric acid production is currently traded on an annual basis, with prices in the merchant market often fluctuating significantly based on smelter acid availability. Any drop in Chinese imports as a result of increased domestic supply and without an equivalent increase in demand could have a dramatic impact on the flow of trade to and from the country. At the same time, with the risk of Chinese acid imports of acid potentially reducing, we expect the same outlook for Chile, an even larger importer of acid. The potential drop in imports in these two countries begs the question over sulphuric acid pricing in the future, and what markets will absorb any diverted trade or trade reversals. Brazil had earlier been expected to increase its consumption of acid, but with key phosphate fertilizer projects shelved, the outlook is also stagnant in the coming years.

Free Sulphuric Acid Market Webinar

Integer Research explores these questions and more in our upcoming online webinar on the sulphuric acid market, taking place on Tuesday 12 May 2015. Click here to register for this free webinar

About Integer Research 

Integer Research is a specialist provider of research, data, analysis and consultancy services across fertilizer and chemicals markets, including the Sulphur and Sulphuric Acid markets.

Contact

For more information on Integer's Sulphuric Acid Market Service and its findings please contact Meena Chauhan, Integer's Sulphur and Sulphuric Acid Research Manager on +44-20-7503-1265 or meena.chauhan@integer-research.com