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Navigating Economic Turbulence: Divergance into the Global Sulphuric Acid Market
Navigating Economic Turbulence: Divergance into the Global Sulphuric Acid Market

Navigating Economic Turbulence: Divergance into the Global Sulphuric Acid Market

  • 18-Apr-2024 2:35 PM
  • Journalist: Nicholas Seifield

Hamburg, Germany: The Sulphuric Acid market is witnessing fluctuations in the global markets due to the disruption in the supply and demand equilibrium. In the European and the Asian- Pacific regions, the prices of Sulphuric Acid inclined due to the disruption in the supply chain of the commodity. However, in the Middle-Eastern and North America, the Sulphuric Acid market sustained its stable trend with the previous week due to the steady market situation of the commodity.

In the German market, the Sulphuric Acid market is following an upward price trend and has risen by 6% and settled at USD 53/MT (FOB-Hamburg) during the week ending on 12th April 2024, due to the continuation in the demand from the downstream Agrochemicals sector but due to the ongoing economy crises, the prices of Sulphuric Acid is experiencing an upward trend. European businesses including Germany are grappling with a challenging economic landscape marked by surging inflation and elevated borrowing expenses, driven by persistently high-interest rates. Consequently, many companies spanning various sectors have been compelled to suspend or delay projects as the cost of debt escalates beyond affordability. This has also hindered capital expenditure and recruitment efforts. Meanwhile, consumers are feeling the pinch of rising inflation, experiencing price hikes across essential goods and services. The spike in interest rates has further inflated mortgage costs, thereby reducing disposable income for individuals.

Similarly, in the Japanese market, the prices of Sulphuric Acid are showcasing the bullishness in the market situation after remaining stable at the lowest price. The current inventory levels are inadequate to satisfy the increased demand from downstream Agrochemical sectors. Consequently, trades from the Japanese market to the overseas market are increasing in a bid to restore equilibrium through a more robust Sulphuric Acid supply chain. Moreover, production costs are on the rise, driven by escalating Crude Oil prices which resulted in the increased energy cost for the commodity.

However, the Saudi Arabian and the US markets continued to remain stable with the previous week's trend despite the increased production cost of Sulphuric Acid driven by the surge in the prices of the feedstock Sulphur market. Since the demand for Sulphuric Acid from the downstream Agrochemical enterprises was moderate for which the existing inventory levels proved to be sufficient, therefore, the prices of Sulphuric Acid continued to remain same in the Saudi Arabia as well as in the USA. Therefore, the trading activities of Sulphuric Acid from Saudi Arabia and the US to the domestic as well as overseas markets were limited to avoid stockpiling which might move the Sulphuric Acid market to a bearish situation. Regarding the spread, the difference between Sulphur and Sulphuric Acid is the same as the previous week indicating the stable market scenario for the commodity.

According to ChemAnalyst, it is anticipated that the Sulphuric Acid market might continue to follow an upward price trend, due to the heightened demand from the downstream Agrochemical sectors as well as due to the ongoing economic crises in a few regions, such as Europe and Japan. Therefore, the prices of Sulphuric Acid are expected to rise in the upcoming weeks.

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