European Sulphuric Acid Market Maintains a Steady Incline Amid Tight Supply

Hamburg, Germany: The Sulphuric Acid market in Europe is displaying sustained stability at elevated price levels, reflecting an overall bullish trend. This upward momentum is primarily driven by the rising production costs, linked to the surge in feedstock Sulphur prices. Additionally, ongoing supply constraints continue to tighten the market, reinforcing the bullish sentiment of Sulphuric Acid. Limited availability of Sulphuric Acid and reduced fresh spot transactions have further supported the steady, high-level pricing, with market participants expecting this trend to persist in the near term as supply remains restricted and production costs climb.

The European Sulphuric Acid market has maintained stability at elevated price levels, primarily due to a persistent scarcity of supply. This limited availability stems from ongoing disruptions in the feedstock Sulphur market, which has faced production challenges, leading to higher Sulphur prices and, consequently, an increase in Sulphuric Acid production costs. Notably, the OMV refinery in Burghausen, Germany, which recently restarted its crude distillation unit after repairs, has contributed to alleviating some of the supply pressures. However, a series of maintenance outages and unplanned disruptions at various Western European refineries earlier in the year exacerbated the already constrained Sulphur supply. These factors combined have created an environment of supply tightness that continues to drive up production costs, with limited fresh spot business emerging due to the ongoing scarcity of Sulphuric Acid.

Despite the higher production costs of Sulphuric Acid, a significant price surge has been somewhat tempered by reduced demand from key players such as Morocco’s OCP, one of the largest consumers of Sulphuric Acid. Recent reports suggest that OCP’s demand has been largely met through existing long-term contracts, easing immediate pressure on the market. Market participants generally anticipate that the current supply shortages of Sulphuric Acid will prevent any significant price declines in the near term, though an improvement in availability is expected in the coming months as refineries stabilize operations. The interplay between supply limitations and fluctuating demand is likely to keep the Sulphuric Acid market on a cautiously upward trajectory in the short term.

In addition, as the plantation season begins in Europe, the demand for Sulphuric Acid has seen an upward trend, driven by its essential use in fertilizers and agricultural applications. However, despite this growing demand for Sulphuric Acid, market players have been cautious in adjusting their prices, keeping their quotations steady amid the ongoing tight supply and limited availability of spot deals. With supply constraints continuing to affect the market, participants have largely agreed with the existing published price range, though there have been differing opinions about potential shifts. Some foresee possible increases due to the demand uptick, while others expect the tight supply to keep prices stable in the near term, preventing any significant deviations from current levels.

According to ChemAnalyst, Sulphuric Acid prices are expected to witness a further upward trend in the upcoming weeks, owing to the monsoon season along with the plantation season in European nations.