Global Sulphuric Acid Market Restricts Price Gains Amidst Weak Downstream Support

Jeddah, Saudi Arabia: In the global market, the prices of Sulphuric Acid continue to follow an overall bearish price trend due to the lackluster demand from the downstream Agrochemical enterprises along with adequate existing inventories in the storage facilities. In terms of the upstream market, the prices of Sulphur are showcasing the same trend as Sulphuric Acid, resulting in the decreased production cost for the product. In the Saudi Arabian market, the prices are experiencing a downward trend, however, in the Japanese and the USA markets, the trend for Sulphuric Acid remains stable with the previous week indicating the maintained equilibrium of supply and demand.

In the Japanese and the USA markets, the demand for Sulphuric Acid from the downstream Agrochemical enterprises remains steady with the week ending on 22nd December 2023. There was low demand of fertilizers from the agrochemical markets along with the ongoing destocking process where traders are more focused on clearing out the existing inventories for fresh stocks in January 2024. Therefore, after analyzing the market situation, the traders chose to maintain their quotations the way they were in the previous week to maintain a smooth supply chain. Talking about its upstream market, the prices for Sulphur are showcasing a steady trend providing ease to the cost of production for Sulphuric Acid.

At the same time, in the Saudi Arabian Sulphuric Acid market, the price trend is following a downward trajectory and settling at USD 59/MT (Ex-Jeddah) on 22nd December 2023, owing to a confluence of factors that contributed to its declining position. The decline in Ex-quotation prices, in conjunction with tame demand from the agrochemical industry, played an important role in this market transformation. In addition, the cost of the primary raw material, Sulphur, underwent a noticeable decline in the market, resulting in decreased production expenses for Sulphuric Acid and, consequently, a fall in its market valuation. The suppliers are hesitant to purchase new commodities due to the already present sufficient stocks in the storage units.

As per ChemAnalyst, the price trend for Sulphuric Acid might showcase a declining trend due to the sluggish demand for fertilizers from the downstream agrochemical sectors along with the ongoing destocking process. Therefore, the above-mentioned factors might plummet the prices of Sulphuric Acid in the upcoming few weeks. Furthermore, it is expected that the traders might get keen to sell their existing inventories of Sulphuric Acid effectively by providing attractive discounts on bulk purchases by the buyers. This might lead to a drop in the prices of Sulphuric Acid in the market.