Global Sulphuric Acid Market: Fluctuations, Regional Trends, and Future Projections

Hamburg, Germany: The Sulphuric Acid market is witnessing a mixed trend due to the disruption in the supply and demand equilibrium. Stability in the prices of Sulphuric Acid is experienced in Europe, North America, and most of the Asia-Pacific regions. However, it is witnessing a declining pattern in the Middle Eastern regions along with China and South Korea. Due to the weak demand from the downstream agrochemical sectors, accompanied by ample inventory levels of Sulphuric Acid, the market trend showcases a declining pattern.

In the European region, the market players have continued with their previous quotations for the Sulphuric Acid market after considering the ample inventory levels in the storage units. Furthermore, in Europe, many smelters are undergoing maintenance periods, for instance, Aurubis has scheduled a maintenance period of two months for its Hamburg smelter, set to occur from May through June. Therefore, they are limiting the supplies of Sulphuric Acid in the market, however, due to the stocked-up inventories of Sulphuric Acid, the demand from the downstream Agrochemical sector is proving to be manageable. Therefore, buyers are also cautious about their procurement activities and choose on-demand procurement to prevent the potential disturbance of the supply chain of Sulphuric Acid. During the week ending on 17th May 2024, the Sulphuric Acid market remained stable with the previous week at USD 68/MT (FOB-Hamburg).

Similarly, in the Asia-Pacific and Middle-Eastern regions, the Sulphuric Acid markets are also sustaining their stability with the last week as the Plantation season is going on, the market traders traded the supplies for Sulphuric Acid, beforehand, for the anticipated demand from the downstream Agrochemical sector. Therefore, the Sulphuric Acid market is witnessing stability in its trend due to the ample inventory levels for the demand from the downstream Agrochemical sectors. Furthermore, the trading activities along with the production rate are regulated as well, by the market players. In terms of the feedstock market, the prices of Sulphur are declining in the Middle Eastern regions, however, stable in the US market, therefore, affecting the production cost of Sulphuric Acid accordingly.

However, the Sulphuric Acid market in China and South Korea is declining, as the demand from the downstream Phosphate markets is weak which created pressure on the China producers to cut the domestic downstream production. Additionally, the maintenance period for some China smelter was also coming to an end. Moreover, Morocco has paid premium prices for larger cargoes from China, compared to the typically smaller lots supplied by Japan and Korea. Currently, the buyer OCP is not purchasing spot shipments from the Far East. FOB prices have been pressured by high freight rates and declining import demand from key destinations, partly due to increased domestic production in those markets. In these countries, the prices of Sulphuric Acid are declining due to lower exports, weak demand, and abundant inventory levels.

As per ChemAnalyst, the Sulphuric Acid market is anticipated to face a bullish trend in the upcoming weeks due to the expected increase in the demand from the downstream Agrochemical sectors which might result in the increased consumption rate of the commodity. This might lead to a supply deficiency for the Sulphuric Acid market.