Analysis of the sulfuric acid market trend in February 2016

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Analysis of the sulfuric acid market trend in February 2016 I. Domestic sulfuric acid market trend According to data monitoring, the price of sulfuric acid in the domestic market remained relatively stable throughout February. The average price of sulfuric acid this month was 348 yuan per ton, with an overall decline of 0.36% compared to the previous month; it was also 16.96% lower than the price level during the same period last year. 　　II. Analysis of the domestic market situation Products: In February, the price of sulfuric acid remained relatively stable with only slight declines; however, the sulfuric acid market continued to show little activity, with low transaction volumes. At present, the overall operating rate of major sulfuric acid production facilities in the country remains around 60%; most of these facilities focus on fulfilling orders under contracts, with few individual orders. 　　Industry chain: This month, the domestic sulfur market remained in a weak trend, with high inventory levels at major ports and minimal shipments. This was mainly due to weak purchasing demand from downstream industries. Major domestic sulfur producers reported significant inventory pressures and slow shipment rates ； Exports by downstream phosphamide manufacturers remain stable, while the domestic phosphamide market shows modest performance due to insufficient demand. Fertilizer manufacturers operate at around 40% capacity, with reasonable inventory levels and normal sales volumes. 　　Industry: The sulfuric acid market remained relatively sluggish throughout February; sales performance was average, with most sulfuric acid production facilities operating at low capacity levels. Companies’ inventory levels were relatively reasonable ； At present, the price of the fifth acid grade varies. In the East China region, the price of sulfuric acid remains stable, while the price of acid produced through smelting is around 260–380 yuan per ton. In North China, the prevailing negotiation price for 98% mineral-based acid is between 280–350 yuan per ton ； 98% sulfuric acid is trading at 290–400 yuan per ton, and it is expected that the sulfuric acid market will remain in a state of sideways consolidation in the coming period. 　　III. Market Outlook and Projections Analysts in the sulfuric acid sector believe that as demand from downstream fertilizer manufacturers begins to increase, the domestic sulfuric acid market is expected to see a slight upward trend in the short term.