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Is every industry in a tough situation? Is sulfuric acid colder? The downstream market is sluggish, there are pressures related to environmental protection, and safety regulations are strict. Ugh
It cannot be entirely attributed to environmental pressures; sulfuric acid is also closely related to other industries, as well as issues such as weak demand and overcapacity.
Sulfuric acid, as a basic chemical product, is highly affected by the economic environment; at the beginning of the industrial chain, there is little room for adjustment or breakthroughs
Sulfuric acid, as a basic chemical product, is greatly affected by the economic environment
Forward: Sulfuric Acid: Difficult times ahead in the year after next 2015-12-04 Zhang Jingxing, China Chemical Industry News. In November, the domestic sulfuric acid market performed moderately, with mainstream transaction prices continuing to decline. The downward trend seen since the end of October persisted, with the mainstream transaction prices for 98% sulfuric acid at some enterprises in Liaoning, Jiangsu, Jiangxi, Shandong, Guangxi and other regions dropping by 20–30 yuan per ton (the same unit is used throughout). Thus, a round of price adjustments has been largely completed nationwide. It is expected that from December to January next year, the phosphate fertilizer market will recover due to preparations for spring planting, and sulfuric acid prices will rise as well. Overall, the market for sulfuric acid this year is \"fairly good\", with prices remaining at medium to high levels, but it is expected to enter a downward trend in the next one or two years. This is information that a reporter from China Chemical Industry News recently obtained from the China Sulfuric Acid Industry Association. Due to a rise of around 30 yuan in the recent transaction price of raw material sulfur, most sulfuric acid manufacturers have taken this opportunity to raise their prices, with the actual pricing determined based on the specific order volume. Currently, the sulfuric acid market is operating in a stable manner, with companies holding some confidence regarding market trends ahead of the New Year. As per past trends, at this time there is an increased demand for acids in industries such as printing and dyeing and the chemical fiber sector, which may boost the market. Meanwhile, rising prices for sulfur upstream provides some supportive factors for the sulfuric acid market, and some companies use this as a reason to maintain stable pricing. Li Chong, deputy secretary-general of the China Sulfuric Acid Industry Association, said that overall this year, the price of sulfuric acid remains at a medium-to-high level. This is mainly due to the strong performance of the phosphate fertilizer market this year; over 60% of the sulfuric acid produced is used in the manufacture of phosphate fertilizers, and therefore the price of phosphate fertilizers influences the market trend for sulfuric acid. During a period when bulk raw materials are generally trading at low prices, the relatively stable price of sulfuric acid is mainly attributed to the strong momentum in fertilizer exports this year. Due to further relaxation of export policies, phosphatic fertilizer exports increased by 50% this year. However, this policy benefit is not sustainable; in the long run, as the supply of sulfur continues to increase, its price has dropped from $800 in 2008 to $130 at present. According to analysts in the industry, the balance point between supply and demand for sulfur in the future is likely to be around $100; therefore, for a long time to come, there will be an ample supply of sulfur, which means that the price of sulfuric acid is not expected to rise significantly. It can be said that in the foreseeable future, the sulfuric acid market will face internal and external challenges, and prices of sulfuric acid are likely to decline in the next one or two years. Li Chong analyzed that on the domestic front, since the first half of this year, the Ministry of Agriculture formulated the \"Action Plan for Zero Growth in Fertilizer Use by 2020,\" which calls for keeping the annual growth rate of fertilizer use within 1% from 2015 to 2019 ; Strive to achieve zero growth in the use of chemical fertilizers for major crops by 2020. This is extremely bad news for the domestic fertilizer market, which is the foundation of these companies. If the consumption of phosphate fertilizers does not increase, then the price of sulfuric acid will inevitably fall. On the international front, demand for phosphate fertilizers in global markets is constrained by the available arable land. At present, China’s phosphate fertilizers are mainly exported to regions such as India, Africa, and South America. Following the surge in exports this year, those levels have approached saturation; it will be difficult to maintain this level of market share in the future, with little potential for further expansion. Meanwhile, from 2017 to 2020, phosphate fertilizer production facilities will be established in the Middle East and North Africa. Competition in the international phosphate fertilizer market is set to become extremely fierce in the future. The region is rich in phosphate ore resources, with some of these ores even found at shallow depths beneath the surface, making them easy to extract. Additionally, the region has abundant reserves of energy sources such as oil and coal at low prices, which further enhances the market competitiveness of phosphate fertilizer products from this region. This will pose a significant challenge to domestic manufacturers. If exports of phosphate fertilizers decline, the price of sulfuric acid is likely to drop even further. Finally, Li Chong also mentioned a potential issue related to the price of sulfuric acid: the significant drop in grain prices this year is bound to affect farmers’ enthusiasm for growing crops in the future. Given the current situation, farmers lack the money to buy fertilizer, leading to widespread practice of selling it on credit. It is currently difficult to determine the extent of reduction in the area under cultivation, as there are still uncertainties, but it is certain that a decrease in the area under cultivation will lead to a reduction in the use of phosphorus-based fertilizers, and the price of sulfuric acid will also start to decline sooner.
Sulfuric acid needs to recover, as does the phosphate fertilizer market; we need to wait. If there is strong pressure to protect the environment, the company is required to invest 2 million yuan in environmental improvement measures
We come into this world with no intention of leaving it alive. This long winter is bound to witness many moments of joy and sorrow, partings and reunions. . . There was an engineer who worked in the sulfuric acid industry. When his son came to choose a major for college, as a father he simply asked him not to choose a major related to the chemical industry.
There is no hope for the sulfuric acid industry in the next two to three years
It’s not just this industry that is in a downturn.
Sulfuric acid is really poor in quality; it’s the New Year’s season, so we have stopped production, and many employees have resigned. :'(:'(