Sulfuric acid market will tend to stabilise Market prices continue to fall but slow down significantly

In September, China's sulfuric acid market remained relatively stable. Although market prices continue to decline, the rate of decline has slowed markedly and shows signs of stabilizing. At present, the most significant impact on the sulfuric acid market is the rapid expansion of production capacity and production. A reduction in exports will also have a certain impact on the domestic market. However, rising energy costs and raw material costs will play a greater role in suppressing the decline in sulfuric acid market prices. From January to August, the total output was 298,800 tons, an increase of 19.2%. Although market demand has declined, it has increased by 18.9% from the previous month.
At the end of September, the mainstream prices of domestic sulfuric acid (98%) were around 350 yuan (ton price, the same below) in Inner Mongolia, about 400 yuan in the northwest, about 500 yuan in the northeast, about 350 yuan in the north, and about 400 yuan in the Shandong region. It is about 500 yuan in South China, about 550 yuan in East China, about 400 yuan in Central China and about 450 yuan in the Southwest. The price of the international sulphuric acid market, the European sulphuric acid market price is about 45 euros. The CIF price in the South American market is around US$80. The price of CIF for the Asian sulphuric acid market was 35 U.S. dollars and the price of imported sulphur rose slightly. In September, the market price of sulphuric acid was still weak, and the possibility of a steady decline may have stabilized.
The main factors affecting the market price of sulfuric acid are: First, the continued increase in output has a significant impact on the market. At present, the domestic market demand for sulphuric acid has slowed down, but the output has been continuously increasing, which has exerted greater pressure on the relatively weak market. Make prices further decline. The second is that the international market prices have dropped back to the domestic market price of sulfuric acid. The increase in the exchange rate of the renminbi is one of the factors that have caused a slight drop in the domestic and international sulfuric acid market prices. The international sulphuric acid market price has recently been in a decline. The exchange rate of the renminbi is also constantly strengthening. With the further increase of the exchange rate, the market price of sulfuric acid may still further decline slightly. Third, rising raw material prices will affect the market price of sulfuric acid. The market price of yellow phosphorus has recently risen. In August and September, the market price has risen by about 20%. The current mainstream price is 12,000 yuan. The increase was mainly due to the improvement in the export situation, the decrease in the domestic market supply, and the impact of the market's objective reasons. Domestic yellow phosphorus production facilities are mainly concentrated in the southwest region of China and the surrounding provinces. Due to the shortage of electricity in the southern region, the operating rate of yellow phosphorus has dropped significantly. Currently only about 60%. At the same time, the nation’s yellow phosphorus production industry, which has high energy consumption, high pollution, and great damage to the natural environment, has undergone a strict rectification and production permit entry system, resulting in a reduction in yellow phosphorus production. The restrictions on yellow phosphorus raw materials in the southwest region in the previous period also had a certain impact on the yellow phosphorus market. From the current market of yellow phosphorus, its market price is still rising. There is also a trend of rising market prices in the near future.
The recent increase in the exchange rate of RMB and the persistence of high international crude oil prices will have an impact on the market price of sulphuric acid. It is expected that the domestic sulphuric acid market will also decline slightly and stabilize in October.

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