Taizhou Tianma Plastic Products Co. LTD , https://www.tianmaepp.com
In February, the main sources of sulfuric acid production in the southwest, Central China, East China and South China suffered from rare ice and snow disasters. The power supply crisis had a major impact on the production of sulfuric acid. Some plants were in a standstill, making the production of sulfuric acid in the above areas in trouble. The price is out of stock. During this period, the production of sulfuric acid in northern China remained basically normal. Overall, the growth rate of domestic sulfuric acid production will decline in February.
Recently, the international crude oil price has rebounded to 100 US dollars/barrel. Affected by the increase in crude oil prices, the average international coal price rose from US$79/tonne to a record high of US$125/tonne. The traditional coal-exporting country, South Africa, has significantly reduced its exports in order to ease power shortages; Indonesia, the second-largest coal exporter in Asia, will also significantly reduce its daily exports to 15,000 tons. China's electric coal has a rare inventory crisis, and coal prices have risen 16.7% from the same period of last month. As the current global energy prices are still rising, the market price of sulfuric acid will continue to rise due to cost factors.
The snow and ice disasters in the southern region have brought unprecedented difficulties to transportation. Both the sulfuric acid producer and the demand side have no choice but to deal with their difficulties. Especially during the Spring Festival this year, to give priority to passenger transport and coal transportation to ensure traffic safety, relevant departments have also adopted certain restrictions on the transportation of dangerous goods such as sulphuric acid, which has affected the stability of the sulphuric acid market price to some extent.
The increase in the price of imported sulphur also affects the stability of the sulphuric acid market. Due to the reduction in domestic imports of sulphur in the past four months, the supply of energy in the market has continued to gather, so that the market price of sulphur continues to climb to a new peak. In February, affected by the increase in international market prices, the domestic average price of solid sulfur per ton rose by 300 yuan/ton from the previous month, an increase of 7.9%. As international sulphur prices are still rising, the prices of the domestic sulphuric acid market will continue to rise due to raw material prices.
In addition, the downstream demand expansion has also increased supply pressure in the sulfuric acid market. Due to the rise in global energy prices, international fertilizer prices have risen significantly, urea prices have risen to the level of 430 US dollars/ton, and compound fertilizer prices have also increased by more than 20%. The state's vigorous investment in agricultural infrastructure will further increase the demand for sulfuric acid and continue to drive the increase in the price of sulfuric acid market.
March is the fertilizer production season. Since the beginning of the year, the domestic production and export of chemical fertilizers have maintained a relatively high level of growth, will increase the demand for sulfuric acid, and may continue to promote the increase in sulfuric acid prices. At present, the price of means of production is still rising, and international sulfur prices will continue to rise, thus affecting the stability of domestic sulfuric acid prices. With the gradual recovery of the domestic power system, domestic production of sulfuric acid is expected to rebound in March, but output growth will not be higher than the level of the same period of last year. The situation of tight supply and demand in the sulfuric acid market will be difficult to ease in the short term.
Sulfuric acid supply and demand tension has not eased signs
In the southern part of China, due to the large ice and snow disasters, high-intensity transportation conditions aggravated by multiple factors such as logistics pressure, energy, and rising prices of imported sulfur to increase production costs of sulfuric acid, in February, the domestic supply of sulfuric acid market has further aggravated the situation. The contradiction between supply and demand continued to expand. The average price of 98% sulfuric acid in the mainstream was 1,370 yuan/ton, up 10% from the previous month. It is expected that in the short term, the contradiction between supply and demand in the sulfuric acid market will continue, and the price of the market will continue to rise.