ake sense of the sulphur & sulphuric acid markets

  

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World sulphur and sulphuric acid market size

 In 2009, approximately 50 million tonnes of sulphur was produced globally with

over 90% being used in the production of sulphuric acid. Sulphur is produced as
involuntary byproduct from oil and gas processing.

 In 2009, approximately 200 million tonnes of sulphuric acid was produced with
close to 60% used in the production of phosphate fertilizers. As one of the world’s
largest-volume industrial chemicals, the balance is consumed by a variety of other
sectors for uses such as production of specialty chemicals, pulp and paper, and
metals leaching.

Current situation/ trade flows

 Global prices of sulphur and sulphuric acid reached unprecedented levels beginning
in late 2007 and throughout the first half of 2008 driven by high demand in end
use sectors, particularly the phosphate fertilizer industry. High prices in that
industry allowed for high sulphur costs to be absorbed essentially causing the run
up in prices. At the same time, demand in other sectors such as base metals was
healthy as well leading to increased trade and prices in the traded sulphuric acid.
Prices began to decline in the second half of 2008 in-line with the global economic
crisis and in 2009, both markets were in “survival mode” with the main focus on
moving product at a time when demand was depressed.

 In late 2009, demand in end use sectors improved causing prices to rebound
continuing into 2010. Compared to historical levels prior to the spike in
 2007/2008, prices are currently at healthy levels and are anticipated to remain
that way through 2020 based on supply/demand fundamentals.
 Major exporters of sulphur include the Middle East, Canada, and the Former
Soviet Union (FSU).
 Major importers of sulphur include China, which accounts for approximately
25% of global consumption, North Africa, India, and the United States.
 As previously indicated, sulphuric acid is primarily produced from sulphur,
but the main source of traded sulphuric acid is smelters located within the Far
East and Europe.

Growth/Forecast

 Moving forward, the global sulphur market is expected to grow with demand
keeping pace representing a balanced market. By 2020, production is forecast
to reach approximately 82 million tonnes with demand of approximately 80
million tonnes.

 Sulphuric acid production will also increase to approximately 285 million

tonnes by 2020 with consumption to reach 280 million tonnes.