Supply sulfuric acid in China

demand, a static supply and declining imports have contributed to increasing prices of U.S. sulfuric acid for much of this year. And market watchers say these conditions are likely to continue for at least another year.

 

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Not only is sulfuric acid supply tight, but there is a shortage of cars to deliver the chemicals, causing concern among some buyers.

Agriculture and metal are the two hottest markets for sulfuric acid right now. About 60% of sulfuric acid produced goes to agriculture, mainly in the manufacture of phosphate fertilizers. The rise of biofuels, especially the proliferation of ethanol plants, has a “double” of the application of sulfuric acid, said Paul Bacon, business director of Rhodia Eco Services, a French producer of sulfuric acid . Firstly, he notes, there is a need for more fertilizer to grow corn, which is the ultimate source of most ethanol fermentation. In addition, said that ethanol plants consume sulfuric acid in its own processing operations. In fact, each new ethanol plant requires between 2000-4000 tons of sulfuric acid per year, according to Marsulex, a producer of sulfuric acid based in Toronto.

Outside the U.S., there is a swelling demand for agricultural fertilizers in China and India. Traditionally, says Bacon, fertilizer manufacturers in these countries have established their own sulfuric acid. However, their needs have exceeded their production capacity, he added, so they are more important acids also stimulate the demand for sulfuric acid.

Meanwhile, the global boom in construction “has stepped up its purchases and prices of metals such as copper and nickel,” said Bacon, and production of metals such as sulfuric acid consumed in the process of leaching of minerals. Although yields of non-ferrous metals smelting byproduct sulfuric acid, metal producers are now more than they can produce sulfuric internal Bacon notes, forcing them to buy the acid to fill the gap . And with copper prices at three times their historical average, companies in the metals are willing and able to pay “much more” Acid few years ago, “said Bacon.

In other markets, Bacon believes that the current growth of sulfuric acid in the production of gasoline and petrochemicals processing of GDP or less in parallel.

As the supply of sulfuric acid, there was a decrease “in the spectacular facilities acid production within five to seven years,” said Key Compton, president of the chemical production of sulfuric-based South Savannah Georgia closures, he adds, are a legacy of a market “saturated” with sulfuric acid, sulfuric acid prices over relatively weak, which did not occur until the beginning of this year. In fact, as late as November 2006, GenTek said it would close its Newark, NJ sulfuric acid facility due to “unfavorable market conditions.”

solid fertilizers and metals, the capacity limits, the most expensive and sulfur are prepared to make regimes sulfuric prices even higher. Despite the recent pickup in demand, there is little or no new capacity on tap in the sulfuric acid, chemicals, says analyst Trey Hamblet Industrial Information Resources in Sugarland, Texas, following construction of plant. $ 89 million in project activity in the sulfur of the United States this year, said the “vast majority” of funds for planned maintenance and response times, rather than expand production capacity.

In the past, U.S. buyers sulfuric acid have been directed to foreign suppliers, when there was not enough domestic product for everyone. However, foreign suppliers without going through the U.S., Compton said, because the prices of the most attractive environments of sulfuric acid in other countries. This, with stops planned in some U.S. plants for maintenance, could result in a “serious shortage” of sulfuric acid in the fourth quarter of this year, he added. To face this situation, “says Compton that his company is placing greater priority on meeting delivery commitments to their existing clients, sulfuric and is “incapable of helping clients’ innovations, particularly those from outside their local market in central southern states .

But limited supply is not the only problem facing buyers of sulfuric acid. Transport, particularly the shortage of railway cars, has become a problem. For example, a leading fertilizer producer Martin Partners halfway in Kilgore, Texas, complained last year that its sales of sulfuric acid by rail had been “inconsistent” in the last two or three years. To alleviate the headaches, the company recently completed a new sulfuric acid plant in Plainview, Texas plant fertilizer. This unit will meet the needs sulfuric all facilities, and create enough surplus to sell on the open market.

In response to growing demand and limited supplies, the price tags of sulfuric acid have reached record levels in recent months (see table). It also increases the driving is more expensive than sulfur, sulfuric acid, key raw materials. The future until the end of 2008, Compton said: “I see nothing to change” the supply, demand and the image of raw materials in sulfuric acid. Finally, he adds, the increase U.S. labels for sulfuric can attract more imports and putting a cap on increases in domestic prices. But for the short term, especially towards the end of this year, he said, domestic customers can pay the price sulfuric acid have never seen before. ”

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