Disruption in Supply-Demand Fundamental Alters the Global Sulphuric Acid Prices
- 27-Oct-2023 4:16 PM
- Journalist: Patrick Knight
Hamburg, Germany- The European Sulphuric Acid market showcases a bullish price trend amid a surge in the purchasing activities from the buyers, due to which the traders are sold out for October -November loading, forcing the distributors to raise their quotations. In terms of the upstream market, the price trend of Sulphur displays an elevation due to the Israel-Hamas conflict, leading to the increase in crude oil prices. With an increase in the European FOBs along with the logistics issues due to the drought in the Panama Canal, traders are facing delays in the supplies to the overseas market. Also, Chile has come out as the key importer of the European Sulphuric Acid market in the past few months, and the trade to the region has elevated along with the elevation in the import prices.
In Germany, the purchasing activities of Sulphuric Acid from the domestic and European markets improve, and the supplier restricts any negotiations for any discounts on bulk purchases. Due to the decreasing water level in the Panama Canal, the suppliers are facing issues in trading their shipments in the Chile market, leading to the supply shortage of Sulphuric Acid. Furthermore, the increasing prices from its upstream Sulphur market are contributing to the elevation in the price trend of the Sulphuric Acid. Regarding the feedstock market, the demand for Sulphur has increased for the Nickel-leeching process and for the production of fertilizers like Monoammonium Phosphate (MAP) and Diammonium Phosphate (DAP). Additionally, due to the ongoing Israel-Hamas conflict, the prices of its upstream Crude Oil market have inclined, leading to the rise in the production cost for Sulphur.
In the Chinese market, Sulphuric Acid prices display a declining trend due to the drop in the demand from the downstream Agrochemical enterprise and the ample stock level in the storage units. This weak market situation benefitted the buyers as the suppliers provided discounts on bulk purchases to clear the inventories for the upcoming fresh stocks. Regarding the upstream market, Sulphur showcases a steady price trend, keeping the production cost intact for Sulphuric Acid. Even after the national holiday, the Sulphuric Acid market is restricted to boost, and the domestic trades remain affected by lull demand. Nevertheless, the export market remains intact, with moderate trade from China to India and Saudi Arabia.
According to ChemAnalyst, the Sulphuric Acid market is anticipated to witness a bullish price trend in the upcoming weeks, along with the cost support from the upstream Sulphur market. The ongoing Israel-Hamas conflict is also expected to support the price trend, which might lead to an elevation in crude oil prices, impacting the Petrochemical market. It is also expected that the inflows of Sulphuric Acid shipment from China to the Asian market will also elevate, and the price hike will have to be borne by the buyers. In the European market, exports from Germany to other European markets are anticipated to grow, and the shipments are expected to trade at a higher rate.