What Causes Sulphuric Acid Prices Soaring in the US Market?

After regulating for inflation, we estimate that US electricity prices went up to 2.5% as per US Energy Information Administration, although the operating rates and the production costs of Sulphur were not impacted much. The ongoing recession in the US market led to lower prices of Sulphuric Acid in the region.

The market value of Sulphuric Acid depleted in the US with costs ranging at USD 97/tonne FOB Linden NJ during the fourth week of March 2023 with a weekly de-escalation of 6.7% as per noted by the ChemAnalyst Research Team Data. A decrease in the production of certain goods that rely on Sulphuric Acid, such as fertilizers, detergents, and other chemicals, impacted the inventories of Sulphur.

Investors are pessimistic about the American Fertilisers and Agricultural Chemical Industry, indicating that their anticipated long-term growth rates are lower than they have historically in the US market. Fewer sales were being generated from the downstream fertilizers market, and lower consumption of products impacted the inventory level of the product's feedstock Oleum, and stocks of the finished product were at a high level, with the new suppliers entering the market and a fall in feedstock costs, which relieved the cost pressure from the overall cost of producing Sulphuric Acid. As the overall cost involved in Sulphuric Acid production plummeted, domestic producers lowered their prices to remain competitive.

Along with increased competition from international Sulphuric Acid supplying countries like Canada, Mexico, Spain, and Taiwan, the domestic demand for Sulphur impacted the product's market price. The freight charges of the product from North America East Coast to North Europe depleted with a fall of 4% in the regional market as per sourced by the traders and the merchants. The Sulphuric Acid costs plunged due to these factors impacting the procuring market sentiments from the Bulk Chemicals sector.