Two firsts in history: for the first time, the output of acid produced through smelting exceeded that produced from sulfur; for the first time, industrial acid consumption surpassed acid usage in fertilizers.

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“Although the overall performance of the sulfuric acid market in 2023 was not optimistic, two key changes that marked a ‘first in history’ occurred within the industry. ”As introduced by Li Chong, secretary-general of the China Sulfur Industry Association, at the 2024 Spring Market Exchange Meeting for the sulfur industry chain held in Beijing on April 9. 　　These two \"firsts in history\" refer to the first time that the output of acid produced through smelting exceeded that of acid produced from sulfur, and the first time that industrial acid consumption surpassed acid usage in fertilizer production. 　　In terms of production, figures from the Sulfuric Acid Association show that the total national production of sulfuric acid in 2023 was 111 million tons, an increase of 4.2% compared to the previous year. Of this amount, 45 million tons were produced through smelting processes, representing a 7.8% increase and exceeding for the first time the amount produced from sulfur; such smelting-based production accounted for 41.2% of the total sulfuric acid output. In response, Li Chong explained, “This is mainly because there is a lot of new production capacity in acid smelting enterprises.” According to statistics from the Sulfuric Acid Association, in 2023, China’s new capacity for sulfuric acid production was 7.2 million tons; of this, 3.72 million tons came from smelting processes, 1.96 million tons from the production of acid using sulfur, and 1.1 million tons from the production of acid using pyrite. Last year, in the new sulfuric acid production capacity added in China, the capacity for producing acid through smelting accounted for the majority. At the same time, the increase in new production capacity led to a high operating rate for acid production enterprises; most of them were operating at full capacity, with some even reaching an operating rate of 105%, as a result of which acid production increased. ” 　　In terms of consumption volume, data from the Sulfuric Acid Association show that in 2023 China’s apparent consumption of sulfuric acid was 109 million tons. Of this amount, 54.21 million tons were used in fertilizer production, accounting for 49.6% of the total apparent consumption; 55.07 million tons were used in industrial applications, representing 50.4% of the total consumption. For the first time, the amount used in industrial applications exceeded that used in fertilizer production, which marked a milestone for the industry. Li Chong explained, “The continuous growth in industrial acids is mainly driven by the steady increase in traditional demand, coupled with new demand generated by the rapid development in the new energy sector, which in turn leads to an increase in the amount of acid used in industry.” ” 　　Li Chong believes that in the future, the demand growth in the sulfuric acid industry will primarily come from new energy sectors, such as those involving lithium iron phosphate, wet nickel smelting, lithium carbonate, and lithium bis(fluorosulfonylimide). Among them, as many companies are building new wet nickel smelting capacity in Indonesia, the potential for sulfuric acid consumption in this sector will be extremely high. 　　Regarding the future development of the sulfuric acid industry, Li Chong believes that as port and logistics infrastructure continue to improve, the number of companies exporting sulfuric acid will increase year by year. Furthermore, this year China’s sulfuric acid industry has started to utilize combined road and rail transportation, and in the future, land-based export methods may be explored for sulfuric acid exports.