Category

Countries

The North American and European Sulphuric Acid Market Witnessed Price Surge Amid the Supply Chain Disruptions
The North American and European Sulphuric Acid Market Witnessed Price Surge Amid the Supply Chain Disruptions

The North American and European Sulphuric Acid Market Witnessed Price Surge Amid the Supply Chain Disruptions

  • 23-Aug-2024 2:29 PM
  • Journalist: Li Hua

Hamburg, Germany: The Sulphuric Acid markets in both Europe and the US are experiencing an upward trend, with Germany showing continued bullishness, while the US market remains stable but at elevated price levels. This price increase of Sulphuric Acid is largely driven by disrupted supply chains, particularly due to maintenance shutdowns that have constrained supply, though production is now returning to normal after a three-month hiatus in Germany. In the US, the Sulphuric Acid market has also been impacted by supply chain disruptions caused by a strike among rail workers in Canada, further tightening supply and contributing to the overall upward pressure on prices.

In the German market, the Sulphuric Acid market witnessed an incline of 6.25% which settled at USD 85/MT (FOB-Hamburg), during the week ending on 23 August 2024. Providing support to the bullish market sentiments was the increased production cost due to the surge in the prices of the feedstock Sulphur market by 2.63%. Furthermore, the demand for Sulphuric Acid from the downstream agrochemical enterprises remained unfulfilled due to the insufficient inventory levels in the storage units. In Q2 2024, the sulphuric acid market in Europe faced significant tightness due to a strong maintenance slate, which limited availability and was exacerbated by post-maintenance restart issues, particularly at Aurubis' Hamburg smelter. The smelter, with a capacity of 1.3 Mt/year, struggled with its restart after a two-month maintenance, leading to additional acid purchases from other producers. Although further smelter maintenance is planned for Q3, the expected acid output loss is lighter. Tight molten sulphur availability in Europe has driven additional demand from European buyers, limiting production from sulphur burners and further tightening the market. Despite prices being 61% lower than in June 2022, they have surged over eightfold since early August 2023 and more than doubled since February, with little expectation of near-term price declines due to ongoing limited spot availability.

The US Sulphuric Acid market is experiencing stability at higher price levels, reflecting bullish market sentiments. This trend is driven by increased production costs, with feedstock sulphur prices rising by 5.93%. Additionally, the tight supply of sulphuric acid has been exacerbated by ongoing conflicts in Canada, which have led to halted rail and port operations. The two largest rail companies in Canada, Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) have locked out 9,300 workers following failed contract negotiations, resulting in the cessation of freight traffic. This disruption is crippling supply chains reliant on rail for moving goods, particularly in agriculture, mining, and retail sectors, leaving critical commodities stranded at ports, warehouses, and production facilities. Consequently, trade inflows from Canada to the US have been disrupted, further contributing to the bullish market sentiments for sulphuric Acid.

According to ChemAnalyst, the Sulphuric Acid markets in Europe and the US are expected to witness further upward trends due to ongoing supply chain disruptions. In Europe, the Sulphuric Acid market is likely to experience continued tight supply throughout the third quarter. Similarly, the US Sulphuric Acid market is projected to maintain its bullish trend, driven by ongoing strikes in Canada that may further disrupt supply chains, along with the upcoming planting season in the US, which is expected to boost demand from downstream agrochemical enterprises.

Related News

European Sulphuric Acid Market Maintains a Steady Incline Amid Tight Supply
  • 26-Sep-2024 3:26 PM
  • Journalist: Patricia Jose Perez
Cobalt Blue Technology Steps Up Amid Queensland's Sulphuric Acid Supply Shortage
  • 08-Aug-2024 12:09 PM
  • Journalist: Rene Swann
American Industrial Partners Takes Over Veolia’s Sulphuric Acid Regeneration Division
  • 01-Aug-2024 3:11 PM
  • Journalist: Jacob Kutchner
OCP Adopts Worley Chemetics’ Sulphuric Acid Technology
  • 17-Jul-2024 3:13 PM
  • Journalist: Peter Schmidt