For the Quarter Ending June 2022
North America
The Sulphuric Acid observed trends upward continuously in the second quarter of 2022. The upstream Sulphur market has increased, affecting the downstream Sulphuric Acid in the region. Russian troops entered Ukraine territory as a part of a special military operation. The US strongly opposes sanctions on Russia's energy and chemical commodities and cuts off the potassium imported from Russia and Belarus. At the end of the quarter, poor demand from the downstream industries curbed the price of Sulphuric Acid in the region. The cost of Sulphuric Acid was recorded at USD 264/MT on a FOB Linden NJ basis at the end of the quarter.
Asia Pacific
In the second quarter of 2022, Sulphuric Acid prices were observed to fluctuate in the Asia Pacific market. Healthy demand from downstream industries like fertilizers has influenced the price of Sulphuric Acid in the quarter starting. After, the upstream Sulphur market remained stable, and the manufacturer's quotation fluctuated in the region. China has suspended fertilizer export to other countries until June 2022 to ensure local market availability. India has secured an important fertilizer supply from Russia under a swap agreement to secure the fertilizer for the upcoming Kharif season. Sulphuric acid's price was recorded at INR 11020/MT on an Ex-Delhi basis and USD 162/MT on a FOB Qingdao basis during the quarter.
Europe
During the second quarter, the region's Sulphuric Acid market persistently increased. With the invasion of Russia to Ukraine, the crude oil prices were raised in the region, and the chemical commodities and other trading sectors were affected during the second quarter. The European market continued to be affected by fluctuations in raw materials in the international market. The sturdy stance of the Russian authorities on trading the Ruble (Russian currency) has put pressure on supply disruptions to stable demand in the local market. The quotation of Sulphuric Acid was recorded at Euro 236/MT on a FOB Hamburg basis during the quarter ending.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the Sulphuric Acid market in the North American region remained consolidated on the back of the strong Crude offers throughout the quarter. The market sentiments were remained uplifted throughout the quarter amidst the unprecedented gains in the international crude oil market and the cost side support from the upstream Sulphur was running high. Whereas, the demand from the agricultural and chemical intermediate sectors remained persistently healthy as the restrictions of China and Russia over the exports of raw materials and the food pricing index was persistently soaring against the shortage of fertilizers. As a ripple effect, the FOB Linden NJ (USA) discussions rose to USD 190 per tonne, during the quarter ending March 2022.
Asia Pacific
During the first quarter of 2022, the sentiments for Sulphuric Acid in the Asia Pacific region observed a significant shift in the market dynamics as Russia invaded Ukraine , prices of Crude Oil market skyrocketed, and the western hemisphere was more reluctant to procure the Russian energy and metals supplies. In response to inquiries traffic concentrated on the middle-eastern market. In response, the Crude offers levied its impact on the Sulphuric Acid market in the APAC region. Although Indian refiners safeguarded their interest after procuring the Russian Urals (high Sulphuric Acid content) despite strict sanctions on Russia. Whereas, the demand outlook from the Northeast Asian region remained high amidst the seasonal hype from the fertilizers segment. As a ripple effect, the quarter-ending discussions for Sulphuric Acid, Ex-Chennai were settled at USD 172 per tonne, in March 2022.
Europe
Overall, the European region is the most affected market due to the geopolitical turmoil in the eastern European region between Russia and Ukraine. As the sanctions made Russia isolated on a global financial stage and impacted its arbitrage with the European Union. Whereas, the European countries were reluctant to procure Russian energy materials in protest of the invasion of Ukraine. Whereas, the prevailing energy crisis hugely impacted the market dynamics, and the Suez Canal authority increased the charges by 5% which further inflated the prices of Sulphuric Acid in the European market. As a ripple effect, the quotations for Sulphuric Acid remained bullish throughout the first quarter of 2022.
For the Quarter Ending December 2021
North America
After observing a constant uptrend in the previous quarter, the market sentiments for Sulphuric Acid eased during the fourth quarter of 2021. This development in the market movement is majorly attributed to the better availability of upstream Sulphur as the OPEC+ alliance decide to gradually increase the production of Crude Oil and it further supported by the announcement made by the Biden’s administration to release the strategic oil reserves in the mid of the fourth quarter. In addition, the quarter average producer's price index for Sulphuric Acid in the US was assessed at 206.10 points. As a ripple effect, the FOB Linden NJ prices for Sulphuric Acid were settled at USD 178 per tonne.
Asia Pacific
During the fourth quarter of 2021, the market sentiments vary for the Northeast Asia market and Southeast Asian market in the APAC region. In the Chinese market, the market sentiments persistently eased after reaching the historic highs as the constant efforts made by the Chinese authorities had curbed the power rationing in China. In response, the output efficacy improved after being depressed for 2 months. Whereas, due to the rising offers of Crude oil and Sulphur the Sulphuric Acid market remained buoyed in India, which was further supported by the constant demand from the fertilizers industry. As a ripple effect, the FOB Qingdao quarterly average discussion for Sulphuric Acid was assessed at USD 124 per tonne, during the fourth quarter of 2021.
Middle East
In the fourth quarter of 2021, the market sentiments for Sulphuric Acid in the Middle East remained staggering upwards. This development is majorly caused after the OPEC + Alliance decided to gradually increase the production efficacy for Crude Oil, which has a proportional impact on the offers for feedstock Sulphur. Its further layout adequate cost support to the offers of Sulphuric Acid on the back of persistently growing demand from the fertilizers and battery electrolyte sector. The market participants from the domestic and overseas market actively inquired about Sulphuric Acid throughout the quarter. As a ripple effect, the Ex-Jeddah quarterly discussion for Sulphuric Acid was assessed at USD 210 per tonne in the fourth quarter.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, the market price of Sulphuric acid witnessed a significant rise in the North American region. An improvement in the supply of Sulphur was reported which resulted in the sufficient availability of sulphuric acid in the US market. In terms of demand, the domestic market experienced an upward trend in Q3 owing to the strong demand from the downstream fertilizer, chemical, and petroleum refining industry. Pricing remained a key concern as producers struggled to grapple with high energy costs.
Asia
The prices of Sulphuric Acid rose effectively in the Asia Pacific region during the third quarter of 2021, backed by consistent demand from the emerging economies including China and India. In India, the prices climbed up in the month of August followed by the steep rise in prices of catalyst Vanadium in the country. Despite a decline in the price trend of Sulphur, amidst modest demand from the domestic market, manufacturers had to increase their product prices to sustain the product margin during Q3. Sources revealed that manufacturers were facing the burden of surging production costs due to hiked catalyst prices, which compelled them to increase their product prices to protect their margin in Q3 of 2021. Sulphuric Acid Ex-Depot Delhi NCR (India) price was last assessed at USD 174 per metric tonne during the last week of September.
Europe
In the European region, the Sulphuric Acid market outlook showcased an upward trajectory in the third quarter followed by the increased demand from the downstream fertilizers sector. The crises of Europe's natural gas and a high energy surcharge raised the overall production cost of local producers. Strong elemental sulphur during Q3, and supply disruptions also helped to push prices higher. Additionally, curtailed supply activities due to lower inventory levels further supported the price uptrend.
For the Quarter Ending June 2021
North America
The Sulphuric Acid market of North America remained firm during this quarter, gaining momentum from the pick-up in domestic fertilisers and other industries. The demand for the product remained high in the meantime, while the supply showcased some fluctuations that led the prices to fluctuate respectively across USA. Consistent offtakes from the fertilizers segment maintained the demand for Sulphuric Acid while industrial acid sector increased demand lately, and eventually the supply demand gap increased that led to steep rise in its prices.
Asia
Asian market has faced an extreme rise in demand for Sulphuric Acid, especially in China during this period. While the demand in India remained modest, due to unprecedented surge in pandemic cases. In the Indian market, price of the product highly influenced by the demand from downstream phosphate fertilizers segments and upstream crude oil values. Thus, the price of Battery Grade Sulphuric acid has been assessed at USD 288.7/MT in India during the final week of the quarter. While in China, double digit gains in prices were observed, due to surprise hike in demand from the domestic downstream market, bolstered by whooping economic recovery in the second quarter of this year.
Europe
European market had firm demand for Sulphuric acid this quarter amidst supply shortages across the region. Post pandemic spot demand from the regional downstream businesses increased effectively, as the sport market activities was reaching its normalcy week over week. In addition, curtailed supply activities due to lower inventory level supported the prices to gain upward momentum in the meantime. While INEOS announced closure of its UK based Sulphuric Acid plant operations, that induced the uncertainties among buyers.
For the Quarter Ending March 2021
North America
The North American Sulphuric Acid market witnessed a downtrend due to lower demand from the downstream derivatives. Due to halted production activities across the US gulf, amid freezing weather conditions, some Sulphuric Acid production facilities remained idled, like PCL Nitrogen shut its Texas based Sulphuric Acid production unit in mid of February. Although demand from the domestic market remained very low and several manufacturers claimed sufficient availability of Sulphuric Acid, average prices reduced by 2.4% during the quarter to settle at USD 60.5/MT till March end.
Asia
The Asian market witnessed a fair import demand from other continents like Europe, although the regional demand remained low due to lesser enquiries from the downstream fertiliser sector. The Chinese Lunar year affected Asian Sulphuric Acid output for a couple of weeks as inventory levels of several major producers reduced to its lowest. Meanwhile, in the Indian market, domestic demand from phosphate fertilisers manufacturers was lower than the export demand from Europe amid spring seasons. Despite of sufficient availability, prices of Sulphuric Acid remained well supported by high priced imports arriving from some European countries. Sulphuric Acid prices in India rose from USD 177.23 per MT (January 2021) to USD 207.17 per MT (March 2021).
Europe
Europe had fair demand for Sulphuric Acid from the domestic fertiliser sector during Q1 2021. The demand majorly induced by phosphate fertiliser manufacturing sector remained high due to spring season. The domestic supply remained moderate to low across the region amid fair demand sending the regional prices to new highs during the quarter. Trading activity remained halted due to freezing weather across region that disrupted the supply activity across the region.
For the Quarter Ending September 2020
Asia
Shortage in the supply of Sulphuric Acid was witnessed in Q3 2020 in the Asia Pacific region, because of escalated demand of the product from the downstream sectors in China which led to an increase in the domestic Chinese consumption. China being one of the major exporters and consumers of Sulphuric acid in APAC strongly drives the regional market outlook. The demand-supply equilibrium of the region was seen impending shifts towards China and South Korea with producers running out of stocks till the end of 2020.
Europe
The supply of Sulphuric acid was stable in Europe in Q3 of 2020, while the demand of Sulphuric acid which remained poor in July & August, showed gradual recovery by the end of September 2020. Most of the economies in the European region started recovering with demand from the acid consuming sectors gaining the lost uptrend by the second half of the quarter with rollovers readily accepted by most of the buyers. Moving into Q4, regional manufacturers are expecting positive market sentiments as the despite looming uncertainties as the second COVID-19 wave creates confusion among producers.
North America
The supply of Sulphuric acid was tight in Q3 due to the outbreak of Hurricane Laura in the region, which caused temporary disruptions in the US’ power supply. Kennecott, one of the largest producers of Sulphuric Acid via smelter route reported decline in the Sulphuric Acid production due to disruptions in the power supply. Many other manufacturing facilities were heard announcing temporary closures at their units, exacerbating the supply constraints. Some units were not able to resume the production until the end of September thus creating a significant demand-supply gap.
