Global supply of sulfuric acid is in excess of demand, port prices plummeted

Due to the shutdown of downstream factories, the interruption of port operations and the new crown epidemic, the world has entered a blockade period, and the supply of sulfuric acid is in excess of demand, which has caused the price of sulfuric acid ports in the first quarter of the world to fall rapidly.

With the progress of the second quarter, many people believe that the Sulfuric Acid market will remain bleak, and because the chaos will continue, this bleak will not see the end.

Despite the poor prospects, the sulfuric acid contract in the second quarter of northwestern Europe is bound to be delivered over time, or slightly reduced. But this should not be seen as a sign that the market is clearing.

Many sources said that despite the bearish market pressures on Sulfuric Acid prices in other parts of the world, the traditional balance of supply and demand in northwestern Europe has made rollovers the most likely outcome, especially at this time when supply is supreme.

However, the trader's view is divided. For a new rollover (for the fifth time since the second quarter of 2019), a Swiss trader thought it would be a surprise, because sulfuric acid prices in other parts of the world are very weak.

The Swiss trader said: "The macro situation is already so bad, so it is hard to believe that European producers will once again rollover delivery." Another trader held the opposite opinion: "This is not surprising. (Sulfuric acid raw material) The supply is very tight, which puts pressure on the sulfuric acid combustion furnace. "Sulfuric acid is produced in two main ways: by-products from the smelting of base metals and Sulfur, the raw material for combustion.

Although buyers of European acid products have previously considered importing acid products from Asia, this trade route presents great logistics challenges for most people. If European buyers want to import, they need to have unloading space, special storage tanks in the port, and the accompanying train storage tanks or road transport. Since they have long purchased sulfuric acid from local producers, many buyers do not have these equipments.

At present, this difficulty has made European buyers even more painful, because the price of sulfuric acid shipped from Asia has plummeted since the beginning of the year.