Following the Economic Recession Average Prices for Sulfuric Acid Began to Climb Back

Date: August 2010
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Sulfuric acid is one of the most important basic chemicals in the chemical and metal processing industry. It is used in the production of fertilizers, for breaking down ores in the extraction of metals and in metal recycling.

Sulfuric acid is available commercially in a number of grades and concentrations. There are two major processes (lead chamber and contact) for production of this commodity. The lead chamber process, the older of the two processes, is used to produce much of the acid used to make fertilizers; it produces a relatively dilute acid (62%–78% H2SO4). The contact process produces a purer, more concentrated acid but requires purer raw materials and the use of expensive catalysts.

Sulfuric acid is one of the world’s largest-volume industrial chemicals. Sulfuric acid is consumed in a wide variety of industrial and technical applications. The major end-use market for sulfuric acid, especially wet-process phosphoric acid, is the production of phosphate fertilizer materials.

North America holds the leading position in sulfuric acid production – this region accounts for about 30% of total output.

During the last decade the sulfuric acid market has seen considerable changes. Both the demand and supply for the material are influenced today primarily by metal production. In 2002-2007 annual growth in sulfuric acid sector has been at about 3,2% level. In 2008 a 2,5% decrease occurred.

Year 2009 opened with the market somewhat hushed. Consumption is not expected to reach the 2007-2008 level until 2011. Fertiliser manufacturers, who use the commodity to make phosphate fertilisers, are normally considered to be the major consumers, demand from this sector has always been high – about 50% on average (2007-2008), however it has dropped dramatically and accounts today for approximately 30 per cent of the demand on the global market. Thus, the global sulfuric acid market had been seriously hit by the global recession, but prices have already begun to climb back along with notably heavy importation by China.

In January 2009 buyers reported a huge jump in sulfuric acid prices blaming tightening supply and increased demand. Sulfuric acid prices in March hit a record high of $329/ton. The increase is due to a combination of factors: rising sulfur prices, increasing demand for sulfuric acid from the fertilizer markets, and short supply of sulfuric acid.

More information on the sulfuric acid market may be found in the report Sulfuric Acid: 2010 World Market Outlook And Forecast recently published by TD The Market Publishers, Ltd.