Industrial policy on sulfuric acid plants

There is a severe overcapacity in sulfuric acid production; at least for now, it only results in losses

There is a severe overcapacity in sulfuric acid production; at present, it only results in losses, unless environmental measures are taken regarding the by-product sulfuric acid.

**According to the 2019 \"Guidance Catalog for Industrial Structure Adjustment\" issued by the National Development and Reform Commission, sulfur-based sulfuric acid production with an annual capacity of 300,000 tons or less (with the exception of electronic-grade sulfuric acid in which the concentration of individual metal ions is ≤100 ppb), as well as sulfuric acid production from pyrite with an annual capacity of 200,000 tons or less, falls under the category of restricted activities； Sulfide ore-based and sulfur-based acid production with a capacity of less than 100,000 tons per year (except in remote areas) falls under the category of processes to be phased out. However, various provinces have policies that are stricter than those set by the National Development and Reform Commission. For example, the Jiangsu Provincial People’s Government issued the “Notice on the Catalogue of Projects Subject to Restrictions, Phasing Out, and Prohibition in the Chemical Industry Structure Adjustment in Jiangsu Province (2020 Edition)” in 2020 (Document No. Su Zheng Ban Fa [2020] 32), which stipulates that sulfur-based sulfuric acid production (with the exception of electronic-grade sulfuric acid in which the concentration of individual metal ions is ≤100 ppb) falls under the category of projects subject to restrictions, while sulfuric acid production from pyrite or sulfur with an annual capacity of less than 100,000 tons is classified as a project to be phased out.

Thank you. Regarding sulfuric acid, it depends on the region; there may be some difficulties in certain areas.