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Sulfur 8

Posted on March 14, 2010.
Sulfur 8Supplyer sulfuric acid in China

demand, a static power supply and falling imports helped push up prices of U.S. sulfuric acid to a large part of this year. And market watchers say these conditions are likely to continue for at least another year.

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Premium of 98% sulfuric acid

Quality Standard

Ash (%)? 0.02

Fe (%)? 0.005

As (%)? 0.0001

Hg (%)? 0.001

Pb (%)? 0.005

Transparency (mm)? 80

Chroma (ml) 2.0

Standard GB/T534-2002

Not only is sulfuric acid supply tight, but there is a shortage of cars to deliver the chemicals, causing concern among some buyers.

Agriculture and metal are the two hottest markets for sulfuric acid right now. About 60% of sulfuric acid produced goes to agriculture, mainly in the manufacture of phosphate fertilizers. The biofuels boom, in particular the proliferation of ethanol plants, has a "double" on the application of sulfuric acid, said Paul Bacon, business director at Rhodia Eco Services, a French producer of sulfuric acid. Firstly, he notes, there is the need for more fertilizer to grow corn, which is the ultimate source of most ethanol fermentation. In addition, he argues that ethanol plants consume sulfuric acid in their processing operations. In fact, each new ethanol plant requires anywhere from 2,000-4,000 tons of sulfuric acid annually, according to Marsulex, a producer of sulfuric acid based in Toronto.

Outside the U.S., there is a swelling demand for agricultural fertilizers in China and India. Traditionally, says Bacon, fertilizer makers in these countries have established their own sulfuric acid. But their needs have exceeded their production capacity, he added, so they are increasingly important to the acid, also stimulate the demand for sulfuric acid.

Meanwhile, the "global boom in construction" has stepped up purchases and prices of metals such as copper and nickel, "said Bacon, and production of metals such uses sulfuric acid in ore leaching process. Although the melting of nonferrous metals yields sulfuric acid as a by-product metal producers now need more sulfuric they can not produce internally, Bacon notes, forcing them to buy the acid to fill the deficit. And with copper prices at three times their historical averages, the metals companies are willing and able to pay "much more" for sulfuric than they were several years ago, "said Bacon.

In other markets, Bacon sees the current growth of sulfuric acid in the production of gasoline and petrochemicals GDP or less parallel.

On the supply of sulfuric acid, there was a decrease "in the spectacular production facilities" of the acid during the last five to seven years, "said Key Compton, president of sulfuric acid-producing states produced chemical-based South in Savannah, Ga. The closures, he adds, are a legacy of a market "saturated" the AIT sulfuric.

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