For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American Sulphuric Acid market experienced a bearish market scenario with declining demand and stocked-up inventory levels of supply. This decrease was attributed to reduced demand from downstream Agrochemical enterprises, coupled with ample availability of existing stocks in storage facilities.
To counter the bearish market conditions, industry players opted to lower their ex-quotations and extend offers to attract buyers to increase their purchasing activities. Despite these efforts, buyers remained cautious and reduced their procurement due to concerns about potential losses in the sluggish market and went towards on-demand procurement.
In the feedstock market, the decline in Sulphur prices played a supporting role in stabilizing Sulphuric Acid prices in the US market. Analyzing the spread, the difference between Sulphur and Sulphuric Acid narrowed, indicating a bearish sentiment in the US Sulphuric Acid market. Regarding the US economy, while inflation has notably decreased from its peak in mid-2022, it still surpasses the Federal Reserve's targeted level of 2%. The central bank is forecasted to commence reducing borrowing costs by the end of June, with expected cumulative reductions ranging from 0.75 percentage points to 1 point throughout 2024. The Federal Reserve's last interest rate hike occurred in the summer of 2023, and historically, rate cuts typically commenced approximately 8½ months later following prior cycles of interest rate increases.
APAC
During the first quarter of 2024, the Sulphuric Acid market in the APAC region showcased bearish market scenarios. The sulphuric Acid market showcased a bearish situation due to the weak demand from the downstream agrochemical enterprises and high inventory levels in the storage facilities. Nevertheless, the manufacturing units decided to reduce their production rate to avoid the oversupplying of the product. High inventory levels in the storage units made the market players lower their prices for the commodity so that the purchasing activities by the buyers could be raised. However, they remain hesitant to increase the purchasing activities to avoid possible future losses. The sluggish demand from the downstream agrochemical sector resulted in an unfavorable situation for the market players as they had to sacrifice their marginal profits. Furthermore, in March, at the Bank of Japan's March meeting, a summary of opinions revealed that many policymakers felt it necessary to proceed cautiously in withdrawing ultra-loose monetary policies. During the decision-making process to terminate negative interest rates last week, there was a division among board members regarding the economy's resilience to withstand the transition.
Europe
During the first quarter of 2024, the European Sulphuric Acid market experienced a bearish trend with an abundant supply of the commodity. Several factors influenced the market, including a decrease in demand from the Agrochemical sector due to the seasonal slowdown, lower prices in the feedstock Sulphur market which resulted in reduced operational costs, and steady demand from the industrial sectors. Despite these factors, no plant shutdowns occurred during this period. Germany, the largest market for Sulphuric Acid in Europe, witnessed a 6.25% decline in prices due to lower demand from the Agrochemical sector and sufficient existing inventories. The market trend remained bearish without any significant seasonality or correlation. Compared to the same quarter in the previous year, prices declined by 47%, while a 9% increase was observed compared to the previous quarter. In terms of price comparison, the first half of the quarter showed a 25% increase compared to the second half. The supply and demand equilibrium was hampered due to the ongoing protests in the European countries. However, the inventory levels were sufficient, therefore, the hampered trading activities did not affect the prices of the commodity.
MEA
The Sulphuric Acid market in the MEA region faced various factors that influenced prices and market dynamics during Q1 2024. An oversupply of the commodity initially led to a bearish trend, prompting suppliers to offer discounts to clear excess stock. This resulted in a decline in prices. Furthermore, the sluggish demand from the downstream agrochemical sector contributed to the slow consumption rate of Sulphuric Acid, exacerbating the imbalance between supply and demand. In contrast, the prices of the feedstock, Sulphur, followed a downward trend during this quarter. This reduction in operational costs for Sulphuric Acid producers helped alleviate some of the market pressures. However, in February and March, the Sulphuric Acid market showcased an upward price trend due to Insufficient supplies of Sulphuric Acid in storage units led to a boost in production rates to meet growing demand from the Agrochemical sector. This increase aimed to achieve a balance between supply and demand. Additionally, rising Crude Oil prices in the upstream market led to increased energy costs, consequently elevating the overall production expenses of the product. But the Red Sea conflict is adding pressure both upwards and downwards, depending on the FOB or CFR side of the deal. Suppliers were not willing to absorb the entire elevated freight rate cost associated with the Red Sea delays and diversions so consumers had to absorb some of the cost to ensure product delivery, particularly from the Middle East where price indications were already rising.
For the Quarter Ending December 2023
North America
The North American region experienced a bearish market situation for Sulphuric Acid in the current quarter of 2023 (Q4). The limited utilization of existing inventories and lackluster demand from downstream agrochemical enterprises resulted in a decline in prices. Moreover, market fluctuations and a decline in the price trend of its upstream Sulphur market further affected the commodity's price trend.
In the United States, which had the most significant changes in prices, the trend was negative, with a 10.7% decrease in prices from the previous quarter. However, the percentage change from last year's same quarter was -70%. Additionally, there was a -6% price percentage comparison between the first and second half of the quarter in the USA. There were no plant shutdowns during the quarter.
The latest price for Sulphuric Acid FOB Linden NJ in the USA for the current quarter is USD 64/MT. Despite the stability observed in the price trend of the upstream Sulphur market, which aided in maintaining operating costs, Sulphuric Acid prices experienced a decline due to weak demand and limited market fundamentals. Insufficient existing inventories in storage units may result in increased demand leading to an incline in the price trend of the commodity.
Asia
The Sulphuric Acid market in the APAC region witnessed a bearish trend in Q4 2023 with low demand from the downstream agrochemical enterprises. The buildup of inventories due to decreased demand and reduced trade between overseas countries resulted in declining prices for the commodity.
However, the market situation was stable in India due to consistent demand from the domestic market and the equilibrium between supply and demand. In Japan, the market situation was bearish, with the limited depletion of Sulphuric Acid inventories in storage facilities due to a sluggish consumption rate resulting in a abundance of the commodity. The depletion in demand from downstream agrochemical enterprises led to an decrease in production rate by producers to meet the market needs.
The primary reason for the feeble demand was the limited need for restocking of inventories with low market trades within the APAC region. Japan witnessed a price percentage change of -33% from the previous quarter, a price percentage comparison of -18% between the first and second half of the quarter, and a price percentage change of -87% from the same quarter last year. The quarter ended with the quarter-ending price of USD 35/MT FOB-Nagoya in Japan for Sulphuric Acid.
Europe
In the fourth quarter of 2023, the Sulphuric Acid market in Europe faced a bearish trend. The market was influenced by several key factors. Firstly, there was an increase in bulk trading and consumption from the derivative market, leading to high operating costs.
Additionally, the gradual improvement in the Sulphuric Acid market contributed to the overall price trend. However, the market was negatively impacted by the increase in transportation fuel costs, which added to the end product's expenses. The price of Sulphuric Acid showed a decline reaching USD 59/MT (IR Grade) FD Antwerp in Belgium. This represents a 6.5% decrease compared to the previous quarter and a significant decrease of -71% compared to the same quarter in the previous year.
Overall, the Sulphuric Acid market in Europe experienced a challenging quarter with various factors influencing prices. Therefore, the overall price trend experienced a decline in Q4 due to the sluggish demand from the downstream agrochemical enterprises along with the sufficient inventory levels in the storage facilities.
MEA
The fourth quarter of 2023 witnessed a bearish trend in the Sulphuric Acid market in the MEA region. The high supply and low demand from the downstream agrochemical industry led to a decline in trading activities among significant manufacturing units. The low demand from the downstream enterprise was fulfilled by the existing inventories.
The low demand for the commodity reduced the consumption of existing inventories in the storage units, with no need to restock the commodity. Saudi Arabia experienced a maximum change in price with a decline of 13% from the previous quarter. The price trend showcased a negative correlation with a change of -54% from the same quarter last year.
The price percentage comparison of the first and second half of the quarter for Saudi Arabia showed a decline of 2%. The stable production rate of Sulphur played a significant role in keeping the operating cost constant. The surge in demand from the downstream agrochemical enterprise may result in a price hike for the commodity. The insufficient existing inventories in the storage units may result in increased demand leading to an incline in the price trend of the commodity. The latest price of Sulphuric acid spot ex-Jeddah in Saudi Arabia at the end of the quarter was USD 60/MT.
For the Quarter Ending September 2023
North America
In the North American market, the price trend of Sulphuric Acid was slightly increased throughout the third quarter of 2023. Substantial purchasing activities and a healthy demand outlook contributed to the surge in the price trend of Sulphuric Acid along with cost support from the upstream market. The product orders improved from the agrochemical sector, and producers tightened their supplies due to the stressed availability of supplies. At the same time, the demand was steady from the other downstream buyers amid consistent consumption rates from cleaning agents. The restocking practices of fertilizers before the winter sowing season and affected production rates due to hurricane Idalia in late August raised the demand-supply gap in the region. Meanwhile, orders for Di Ammonium phosphate fertilizers increased from Brazil due to the limited supplies from key exporter Morocco after the occurrence of the earthquake on 8th and 14th September 2023. Furthermore, the increase in import prices of feedstock Sulphur amid affected supply chain activities and escalation in upstream Crude Oil prices raised the production costs, resulting in the elevated price trend of the commodity.
APAC
The price trend of Sulphuric acid in China declined in the first half of the third quarter and again increased in the second half of the third quarter of 2023. In the first half, sulphuric acid prices have experienced a significant dip. This decline was largely driven by a reduction in demand from downstream fertilizer industries, which increased product inventory levels. As a result, the enthusiasm among downstream customers for purchasing sulphuric acid weakened, contributing to a contraction in the overall market trend for the product in the region amidst a mismatch between supply and demand. Whereas in the second half, the cost support rose due to the increase in feedstock Sulphur prices amid improved demand from the buyers. At the same time, product orders improved from the fertilizer sector, and producers tightened their supplies due to their stressed availability. In the last few weeks of September 2023, due to the arriving Golden Week in October 2023, the trading was done at a higher rate, which resulted in the low availability of vessels and containers, increasing the freight charge.
Europe
The market price of Sulphuric Acid in the European Market declined during the third quarter of 2023. In Belgium, the price trend of the product declined in the procurement of sulphur-based fertilizers by the downstream market in Belgium. This dip in demand has resulted in a proportional rise in the quantity of these products held in inventory, possibly attributable to adjustments in farming methods and transforming customer inclinations. However, the price trend was slightly increased with additional cargo trades during August 2023. Providers had their buying exercises on bulk premises with an increase in spot trading activities. In terms of the upstream market, the cost support from the upstream crude oil and Sulphur values surged with the increase in production cost. The Demand for Sulphuric Acid from the downstream Agrochemical and Dyes intermediate market started to surge in the wake of high market offtakes and high trading activities—an uplift in demand to sustain in the European market, which hampered the trading dynamics.
MEA
With the end of the third quarter of 2023, the market price of Sulphuric Acid fell from USD 67/MT to USD 48/MT (CFR-Jebel Ali). However, in the first half of the third quarter, the product prices slightly increased due to low stocks and restricted supply in the region, so companies were obliged to raise product prices. When it comes to raw materials, certain manufacturers tend to raise their ex-works prices. This abrupt change in supply and demand dynamics resulted in tremendous market demand and a price increase. Demand for Sulphuric Acid from the downstream Agrochemical and Dyes intermediate sectors continues to be high, with supply surpassing demand. Whereas in the second half of the third quarter, the prices of the product decreased due to low demand from the domestic market for which sufficient inventories were present in the storage units, due to which supplier was obligated to hold their prices. However, surges in the upstream sulphur market were observed, which increased the production cost of the product, but due to the low demand and sufficient inventories, the price trend declined during September 2023.
For the Quarter Ending June 2023
North America
As the second quarter of 2023 came to a close, the market price of Sulphuric Acid fell to USD 76/ton FOB Linden NJ in the North American region. Despite this dip, the Fertilizers and Agricultural Chemicals industry enjoyed a boost of 3.0% just last week, with Corteva leading the charge with a 3.7% increase. Unfortunately, the industry had suffered a significant loss of 7.0% over the previous year. Analysts now project consistent earnings growth in the forthcoming years. The decrease in sales across the board has led to a corresponding reduction in profitability within the industry, causing some concern among investors. Consequently, the inventory level of Sulphuric Acid has risen among merchants according to market data provided by traders. In addition, investors remain skeptical regarding the prospects of the American Energy Industry, casting doubt upon its potential for long-term growth. These factors combined suggest that the outlook for the market remains uncertain. During this week, the supply situation in the USA market continued to outpace the demand, resulting in negotiations by traders at lower prices within the regional market.
APAC
Prices of Sulphuric Acid experienced a downturn in the Asian market at USD 78/ton FOB Qingdao during the second quarter of 2023. Market participants appear unfavorable towards the Japanese Fertilizers and Agricultural Chemicals sector, expecting prolonged growth rates to be inferior to historical levels. The industry's current valuation stands at a Price to Earnings (P/E) multiple of 8.8x, below its three-year mean P/E of 13.0x. Meanwhile, the Price to Sales (P/S) ratio remains relatively close to its three-year average of 0.73x. An uptick in the demand for Sulphuric Acid from the downstream fertilizers market contributed to an accumulation of stocks in the region. The Sulphuric Acid demand was weak. A small number of purchases were followed up on demand. The manufacturer's shipment was blocked, and the trading mentality was impacted. Downstream demand continued to be sluggish, market trading was light, Sulphuric Acid manufacturers' shipments were hindered, operators had insufficient mentality and there was a lack of positivity on the market, as the Sulphur market support was insufficient.
Europe
The market price of Sulphuric Acid plummeted in the European market at USD 86/ton FOB Hamburg. According to insights shared by manufacturing sources, there has been a substantial fall in demand emanating from the downstream fertilizers and refining segments. Industrial applications are the primary driver behind this diminution, causing markedly less Sulphuric Acid uptake across relevant industries. Consequently, Sulphuric Acid stockpiles are likely to swell among involved traders, owing mainly to subdued demand from consumers at present. It is crucial to observe how industry participants will react to these changing circumstances to make informed decisions moving forward. The inventory level of Sulphuric Acid with the traders and the merchants in the European market as per quotations elevated due to increase in the consumption of the product from the downstream fertilizers stock. According to insights shared by manufacturing sources, there has been a substantial fall in demand emanating from the downstream fertilizers and refining segments. Industrial applications are the primary driver behind this diminution, causing markedly less Sulphuric Acid uptake across relevant industries. Consequently, Sulphuric Acid stockpiles are likely to swell among involved traders, owing mainly to subdued demand from consumers at present. It is crucial to observe how industry participants will react to these changing circumstances to make informed decisions moving forward.
MEA
The market price of Sulphuric Acid plunged in the UAE market at USD 71/ton CFR Jebel Ali during the second quarter of 2023. Old fertiliser business was down rapidly over the month, with the rate of expansion hitting a four-year low. The plunge in new orders was driven by weaker customer demand, while the expansion in output was in part due to advertising and promotional activity. In addition, employment fell for the fourteenth month running, however backlogs of work continued to plummet. On the price front, inflation was weaker than the series average, but still the lowest in nearly a year, due to a sharp decrease in purchase prices and staff costs. Lastly, the year-ahead outlook for output remained pessimistic, fallen by the confidence in the continuous fall of new orders. Nonetheless, sentiment dipped from May and remained below the series average as per the market data. In the last week, the Energy Services industry is up 8.6%, with all of the companies up. Despite this gain, the industry's performance has been flat over the past year. As for the next few years, earnings are expected to grow by 16% per annum.
For the Quarter Ending March 2023
North America
Sulphuric Acid prices de-escalated in the USA market during the first quarter of 2023, with prices ranging at USD 98/ton FOB Linden NJ in March. With rising market inventories and the participation of traders and suppliers, the fertilizers market in the USA de-escalated. Due to increased sulphuric acid stockpiles in the local market, the product's marginal demand fell in the area. Due to lower sales in the USA market region, the revenues from sulfuric acid were depleted. Due to the conflict between supply and demand, the situation in the downstream fertilizer market is dire, consumer interest in buying sulfuric acid is average, and the production trend is downward
Asia
The market value of Sulphuric Acid was depleted in the Asian market, with prices ranging at USD 77/ton IR Grade FOB Qingdao in Q1,2023. The price of the feedstock raw material oleum had an effect on the region's bulk chemical and fertilizer markets. Sulphuric acid inventory levels increased, which had an effect on suppliers' perceptions of the market. The upstream and downstream industrial chains had lately observed a modest slump in the upstream sulphur market due to insufficient cost support. While the downstream market for Ammonium Sulphate saw a slight decline, and product demand from the downstream fertilizer sector fell. The product trend deteriorated as a result of the mismatch between the supply and demand of Sulphuric Acid.
Europe
The prices of Sulphuric Acid were de-escalated in the European market, with prices ranging at USD 157/ton IR Grade FOB Hamburg in February during Q1,2023. European exports may benefit from the recent Euro weakening and higher oil prices, but there are still challenges, such as a weaker global economy. As the price of bulk chemicals and fertilizers fluctuated, the market value of sulfuric acid decreased in the German region. With weaker bulk chemical and fertilizer purchases in the area, demand from the downstream fertilizer sector is declining. The product's inventory level tends to rise when sulphuric acid demand declines. The level of competition among the suppliers forced the manufacturers to deplete the prices of the product. The procurement of the product depreciated in the regional market, impacting the market value of Sulphur
For the Quarter Ending December 2022
North America
In the Q4 of 2022, the market value of Sulphuric Acid advanced in a plummeting direction, with the price being at its lowest by the end of the quarter, as per ChemAnalyst Research Team Data. The cost ranged at USD 260/ton FOB Linden NJ (USA) during October in the domestic market region as per sourced by the traders and the suppliers. There was a plunge in the downstream fertilizer industry, driving a good pullback from the bulk Chemicals industry, which has been one of the sole reasons for Sulphuric Acid prices to fall. This was a modest decline in the prices that were noted by the market players. The de-escalation in demand for the product from the fertilizers and dyestuff industry affected the price of the product in the US domestic market. Market experts perceive the American Sulphuric Acid industry as pessimistic, expecting long-term growth rates to be lower than they have historically been.
Asia
The price of Sulphuric Acid swiftly dropped since there was limited order support in the Asian market. Firms that produce Sulphur steadily decreased their prices to stabilize the supply of the feedstock and meet the available demand. The cost support was badly impacted by the ongoing decrease in the price of crude oil. The product's low-price trend in the local market was backed by poor demand, excess supply, and declining spot prices abroad. The downstream fertilizer industry has maintained consistent consumption levels, while the automobile and construction sectors have kept volume intakes on the lower side. The prices have been observed at USD 92/ton IR Grade FOB Qingdao during November in the fourth quarter of 2022 as per ChemAnalyst Research Team Data in the Chinese market.
Europe
During the fourth quarter of 2022, the market value of Sulphuric Acid plunged in the fourth quarter of 2022 in the European market, with price ranging at USD 244/ton IR Grade FOB Hamburg in November. The inventories of Sulphuric Acid were rising in the trader's and the supplier's regular stock due to lower consumption in the regional market. The factor driving down the pricing of the Sulphuric Acid business has been investors' gloomy outlook for the automotive manufacturing sector in the remainder of the quarter. A significant interruption in production was furthered by a decrease in the cost of feedstock Sulphur amid declining crude oil prices. The rate of Sulphuric Acid production has been further reduced amid sluggish product demand.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the requirement for Sulfuric acid is supported by a fluctuation in demand from downstream sectors. Projections for fertilizer demand losses are wide-ranging and, in several instances, overstated during the beginning of the quarter. The prices were observed to hover at USD 260/ton Sulphuric Acid FOB Linden NJ as recorded by ChemAnalyst pricing team data during the end of this quarter in the USA market. The demand from downstream also remained underwhelming as consumption from the fertilizer market decreased towards the end of the quarter. Because of higher volumes of demand at the end of the quarter, higher congestion at some US ports caused global supply chain challenges in the region.
Asia
Sulphuric Acid prices seesawed in the Asian region during the Q3 of 2022, with prices ranging at USD 101/ton FOB Qingdao IR Grade in mid-quarter as recorded by ChemAnalyst pricing team data in China. Japan's fuel imports rise on utility demand, causing the product's expense in the Japanese market during the period. According to manufacturer quotations, September saw a rapid decline in domestic sulfuric acid prices despite low manufacturers' inventories and a minor increase in the upstream sulfur price, and increased cost support. Shipping containers caused traffic which caused severe congestion in the South East Asian market, affecting the trading sentiments.
Europe
The prices of Sulphuric Acid rose during the third quarter of 2022 with a slight fall in the mid in the European market, with prices ranging at USD 231/ton Sulphuric Acid IR Grade FOB Hamburg in Germany during August. Fertilizer demand surged during the beginning of the quarter with a rapid increase in buying sentiment amidst turmoil in the European market. Sulphuric acid prices dropped in the middle of the quarter and were pressured by weaker demand for Belgium rebar and USA scrap exporters' appetency to sell and benefit from lower side costs relative to alternative world competitors.
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
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.
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.
