How soaring international crude oil market governs the future of Copper Sulphate
- 22-Apr-2022 8:29 AM
- Journalist: Patrick Knight
The Copper Sulphate prices showcased an increasing trend due to the surging feedstock Copper and Sulphuric Acid prices. However, the geopolitical turmoil in European nations has pressurized crude and energy prices. The sanctions imposed on Russia by western countries hampered the entire production activity in Europe and the market participants were forced to lean toward overseas suppliers to ensure adequate volumes.
In China, the country's COVID-19 control and prevention measures are still strictly implemented. The shipments of crude oil and coking coal were severely curbing due to the restricted public mobility. Besides curtailing the operational loads at the manufacturing facilities, the refiners were forced to drop their production rate to maintain sustainable netbacks. In March, the decline in crude oil imports was supported further by 9% to 14.5%. The restricted onloading and offloading activities at the ports impacted the efficacy of the operational loads, which additionally resulted in port congestion after the traffic exceeded 500% in mid-March. However, the climbing index for the US dollar has pushed the prices of copper upwards.
Furthermore, the European nations have increased their quotations for the feedstock Sulphuric Acid amidst the significant cost support from the upstream. Besides that, Libya's domestic crude oil production and exports have been directly affected due to blockage amidst the political standoff in the country. That brings another round of uncertainties over the global market as the current situation is far from average in eastern Europe.
The following week, Peruvian authorities declared an emergency in the Southern region. The Local protesting miners advanced to capture the Cuajone mine after capturing three mines across Peru and now have hit many copper mines there. According to local authorities, it is reported that more than 18 % of the country's copper production is facing disruptions. Since the beginning of the first quarter of 2022, Peruvian protestors have hampered the mining activities of various mines, including the Cuajone Copper mine, Glencore's Antapaccay copper mine, and MMR's Las Bambas copper mine. Additionally, it is expected by the protestors on Wednesday that they will expand their protest underway for Canco's Antapaccay copper mine.
As per ChemAnalyst," The prices of Copper Sulphate are expected to showcase stable market sentiments owing to increased inquiries for raw materials. If the COVID-19 pandemic comes under control, there is a chance for a declining trend."