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I’ve been working in the sulfuric acid-related industry for several years now, and it seems that the market conditions are getting worse year by year. The decline in demand has led to a contraction of the market. The one or two projects I’ve come across this year are not pure sulfuric acid production facilities; rather, they utilize sulfuric acid vapor as an energy source. Their production capacity is small enough to be met internally, resulting in a self-sufficient situation.
The current situation in the basic chemicals market is generally poor. New sulfuric acid production projects are established only for the purpose of generating electricity and steam. As is well known, chemical companies are not allowed to set up power generation or boiler facilities within industrial parks; such restrictions have led to the establishment of more sulfuric acid production projects, further disrupting market order. In the end, it is still the result of power generation companies monopolizing the supply of utility services in industrial parks, thereby reaping huge profits and squeezing corporate earnings, forcing companies to find alternative solutions. Is there really still money to be made in the sulfuric acid project?
At our company, we can only reduce losses related to sulfuric acid by using steam and hot air; the price of sulfur is 1,500 yuan per ton, while the price of sulfuric acid is 280–300 yuan per ton
There are also some chemical processing units where acid is produced in large quantities from by-products (non-traditional raw materials such as pyrite, sulfur, and smelting flue gas).
The demand for sulfuric acid is increasing, but its price is decreasing, as there is an abundance of acid produced as a by-product. It needs to be hot, it needs electricity, it’s used for metal smelting – it causes problems
Sulfur isn’t that expensive anymore, it’s only 1100–1200 now
The profits in the sulfuric acid industry are indeed slim; currently, the costs of transporting resources are high, labor costs are elevated, and equipment maintenance expenses are significant. Sulfuric acid can only serve as a source of sulfur, and it is a path that must be considered whether developing downstream products or other related industries. The potential for making use of steam, electricity, etc., is quite limited
Our company’s sulfuric acid and steam are mainly supplied to titanium dioxide plants, reducing us to a service-oriented unit.
In Fujian, it’s around 1100
Our factory is the same; it has a 200,000-ton plant that supplies steam to the entire facility, which reduces production volume. The monthly production quota is 15,000 tons; any excess will result in a deduction from salary.