Global Sulphuric Acid Market Witnesses Price Volatility Amid Demand Concerns
- 18-Oct-2023 6:29 PM
- Journalist: Shiba Teramoto
Linden NJ, USA- In the global market, the Sulphuric Acid market remains on the lower end, supported by the stable price trend from its upstream Sulphur market and limited firmer bids and offers among the traders. Suppliers kept their prices intact for the commodity to clear out their inventories for the upcoming fresh stock. However, the price trend of Sulphuric Acid in Chile was at a higher end whereas, in Morocco, the prices of Sulphuric Acid remain stabilized due to the sufficient inventories in the storage units as the imports from China were done in Morocco at a higher rate from the past few months.
In the USA, the price trend for Sulphuric Acid remains stable at the lower end, at USD 68/MT (FOB-Linden NJ) during the week ending on 13th Oct, affected by deterred demand and weak market trading sentiments from the supplier's end to the end-users. In terms of the upstream market, the demand for Sulphur has declined as well, due to which the suppliers had a strong mentality to keep the prices steady and remain hesitant to provide cost support. Stabilized prices of Sulphuric Acid in the USA contributed to the limited trade among the Canadian and Mexican markets. Therefore, the production rates of Sulphuric acid declined, leading to the cautious running of the manufacturing units to lower their inventory level. Regarding the downstream market, the demand for Sulphuric Acid from the downstream Agrochemical enterprises plummeted, raising concern over the suppliers to clear their stocks and trade the cargo at negotiable rates by offering discounts on bulk purchases.
In the South American market, the supply of Sulphuric Acid tightened due to limited imports, resulting in an elevation in the prices as the demand from the downstream agrochemical enterprise surged gradually. Imports from China to Chile were affected in the past few months, which disrupted the supply/demand equilibrium in the regional market. The primary cause for limited trade to Chile was the rise in import levels from China to Morocco during mid-Aug and Sept 2023. As the ripple effect, the price trend of Sulphuric Acid in Morocco remains steady this week along with the sufficient inventories among the storage unit. Furthermore, the domestic production rate of Sulphuric Acid in Chile was also low, adding to the supply tightness.
According to ChemAnalyst, the prices of Sulphuric Acid are expected to showcase a bullish price trend in the upcoming weeks, along with cost support from its upstream Sulphur market. This may lead to an increase in the production cost of the Sulphuric Acid. Since the Golden Week in China has ended, the demand from the downstream Agrochemical sector might elevate, resulting in trading activities from China to another overseas market. Furthermore, due to the Israel-Hamas conflict, the elevation in the Petrochemical market, including Sulphur, may surge the price trajectory for its derivative market.