Global Sulphuric Acid Market Faces Bearish Trend Amid Agrochemical Downturn

Linden NJ, USA: During the week ending on 12th January 2024, the prices of Sulphuric Acid are showcasing a bearish trend due to the weak Agrochemical demand for fertilizers. In the global market, the overall price trend of Sulphuric Acid is declining due to the sluggish demand from the downstream agrochemical sector and stocked-up storage facilities with ample  inventories. In terms of its feedstock, Sulphur is also facing the same situation with sluggish demand from the downstream agrochemical sector. Similarly, the prices of its upstream crude oil are witnessing a downward price trajectory from the past few week, which resulted in the overall decline in the prices of Sulphuric Acid.

The price of Sulphuric Acid in the USA market is maintaining its stability at USD 62/MT (FOB-Linden NJ) at the lower end, during the week ending on 12th January 2024. In light of this market condition, buyers are showing reluctance towards large-scale procurement and are favouring on-demand purchases to prevent potential losses from excess supply. Consequently, there is a restriction in trade inflows among the significant manufacturing units. However, the prices of Sulphur are following a downward trend resulting in the lower operating cost of Sulphuric Acid, along with the support from limited purchasing activities. This overall market situation in the USA represents the balance between the supply and demand for Sulphuric Acid.

In the same manner, In the Saudi Arabian market, the prices of Sulphuric Acid are following the same trend as of the USA market. This steadiness is due to the restrained demand from the downstream Agrochemical market resulting in manageable consumption of the existing inventories creating the requirement to restock the supplies. Considering the stable market situation, all the other factors including the production rate and trades from the Saudi Arabian market to the domestic market as well as the overseas market are constant. Since the aim is to maintain the supply and demand equilibrium, therefore, the factors affecting the prices of Sulphuric Acid are kept constant.

In the Japanese market, the prices of Sulphuric Acid continue to decline and settled at USD 28/MT (FOB-Nagoya), during the week ending on 12th January 2024. This decline is attributed to reduced demand for fertilizers from the downstream agrochemical market. Buyers are adhering to the same approach as the previous week to maintain a stable supply chain. The sluggish demand is affecting the other factors since the production rate was reduced to avoid the oversupplying of Sulphuric Acid. The traders are shifting their focus from increasing their marginal profits to clearing out the existing inventories primarily, therefore, they are providing discounts on Sulphuric Acid to persuade the buyers to enhance their purchasing activities. But this step is not going in the favor of traders as the buyers are restricting their purchases to avoid further possible losses.

According to ChemAnalyst, the prices of Sulphuric Acid are anticipated to decline in the upcoming weeks due to the expected lower demand from the downstream agrochemical market for Sulphuric Acid in fertilizers. Since sufficient inventory levels are piled up in the storage facilities, further purchasing activities might be kept on hold.