4 August 2021 | Published by ICIS | www.icis.

com | 6 Pages

World sulphuric acid

weekly

■ INEOS sells Bilbao burner to WeylChem ■ Venator tenders for Malaysian TiO2 operations

■ Saudi Arabia’s Ma’aden makes triple purchase ■ Escondida union threatens strike action

Prices
KEY PRICES
4 Aug 28 July 21 July Price Point Notes
US Gulf CFR 222 - 227 215 - 220 215 - 220
NW Europe CFR consumer Q3 €100 - 145 €100 - 145 €100 - 145 Q3 contract
NW Europe CFR consumer H2 €90 - 97 €90 - 97 €71 - 78 H2 2021 contract
NW Europe FOB shiploads 155 - 180 150 - 180 145 - 165
Mediterranean FOB shiploads 155 - 180 150 - 180 145 - 165
Chile CFR Mejillones 55 - 62 55 - 62 55 - 62 2021 annual contract
Chile CFR Mejillones (spot) 225 - 240 225 - 240 225 - 240
Brazil CFR (spot) 235 - 250 230 - 238 225 - 233
North Africa CFR (spot) 175 - 210 170 - 205 170 - 205
South Korea/Japan FOB (spot) 125 - 145 120 - 140 120 - 140
China FOB (spot) 135 - 155 130 - 150 130 - 150
S.E. Asia CFR (spot) 140 - 150 140 - 150 140 - 150
India CFR (spot) 155 - 165 155 - 165 150 - 165
N.E Asia CFR 81 - 91 81 - 91 81 - 91 Q2 contract
S.E Asia CFR 94 - 109 94 - 109 94 - 109 Q2 contract
Prices refer to most recently concluded contract, spot business or competitive offers. Prices are net of credit or other terms.

NOTE: for full details on the criteria ICIS pricing uses in making these price assessments, visit www.icis.com and click on “methodology”.

Analysis
SULPHURIC ACID PRICE COMPARISON

Trading activity has picked up in the global sulphuric acid market, with
fresh sales heard into Brazil and Saudi Arabia.

In Brazil, an unspecified buyer snapped up 19,000 tonnes of acid at

around $250/tonne CFR; while in Saudi Arabia fertilizer giant Ma’aden
was linked to a triple purchase for Q4 delivery.

Further afield, in Europe, INEOS surprised the market with news of

the sale of its Bilbao burner in Spain; further distancing the chemicals
major from the acid business, following the shutdown of its Runcorn
burner in the UK in March.

In China, domestic demand remains strong and supply tight amid

turnarounds; while the threat of a fresh coronavirus outbreak in
Jiangsu Province has led authorities to delay seagoing traffic at ports.

In Chile, all eyes are on Escondida as a union at the BHP-owned copper

mine grows ever-closer to declaring a strike; and finally, in southeast
Asia, a purchase tender from Venator looks set to offer much-needed
price direction.

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World sulphuric acid

Markets CHINESE DOMESTIC PRICES (CNY/TONNE)

EUROPE 98% EXW Change
In northwest Europe, news that global chemicals major INEOS has
Anhui Tongguanshan 950 Up 270
sold its Bilbao sulphur burner in Spain has piqued interest among
Jiangxi Copper 590-630 Stable
sulphuric acid players, against a backdrop of good acid demand, tight
spot availability and high prices at ports around the world. Guangdong Huiyun Titanium
950 Up 100
Industry
Guangxi Jinchuan 880-1090 Up 160-260
INEOS Enterprises completed the sale of its sulphur chemicals business
to International Chemical Investors Group on Monday. Guangxi Hechi 1160-1230 Stable

The business is the largest dedicated producer of sulphuric acid

and oleum in Spain, with a nameplate capacity totalling 400,000
tonnes/year.
It will become part of the WeylChem Group of Companies, a fine
chemicals business owned by International Chemical Investors
Group, whose operations include a sulphuric acid and oleum plant
in northern France.
On paper the sale’s timing appears unusual, as global sulphuric acid
prices have been on a steep uptick since late 2020, on a combination
of good demand and very tight spot availability.
However, like many other European and Asian sulphur-burning acid
units, a lack of feedstock liquid sulphur has restricted run rates and
volumes produced at Bilbao; hindering trading.
The northwest Europe FOB range has narrowed on market discussions.
In the Mediterranean, the range has narrowed in line with the
northwest European FOB price.
The Turkish Statistical Institute has released fertilizer import and
export data for the first half of 2021, which is accessible via the ICIS
Supply & Demand Database.
AFRICA
In north Africa no new business has been heard, although the CFR
range has increased on market discussions and firmer FOB netbacks
to Europe and Asia.
This is unconfirmed.
In Hubei Province, demand from phosphate fertilizer producers has
supported provincial acid players’ firmer offers - although buyers
are complaining of unfair hikes in costs compared to their own end-
products’ selling price.
Anhui Province’s Tongling Nonferrous Metals has again upped its offer
price, pushing up by CNY150/tonne to more than CNY850/tonne
EXW, it was heard.
In Hunan Province, it is understood Minmetals Hunan Ferroalloys has
entered a maintenance turnaround, tightening provincial supply and
supporting increased offer levels.
To the south, in Yunan Province, an electricity restriction policy has
slowed run-rates, and supported acid units’ offer prices. Domestic
tonnes were heard on offer around CNY900-980/tonne EXW.
In Guangxi Province, Jinchuan Group has little domestic availability;
while Guangxi Nanguo has slowed production on a technical fault.
This is unconfirmed.
It is understood Chinese port authorities at Zhenjiang, Jinjiang, and
Jiangyin ports in Jiangsu Province are delaying ship movements by up
to 14 days, amid an outbreak of coronavirus in the province.
The average Chinese MAP and DAP operating rates this week were
65% of capacity.

MIDDLE EAST The China FOB export price range has narrowed on market discussions.
In Saudi Arabia it is understood Ma’aden has purchased three
18,000-20,000 tonne cargoes of sulphuric acid, for end-September, In Japan, the Ministry of Finance has released sulphuric acid export
early October, or Q4 shipment. data for H1 2021, which is accessible via the ICIS Supply & Demand
Database.
One cargo was heard priced at around $208/tonne CFR and of Asian
origin, with freight in the mid-$40s/tonne. In South Korea, Korea-Zinc is sold-out on spot tonnes until year-end.

The source and price agreed for the remaining two lots is unclear. The Japan/South Korea acid range has firmed on market discussions.

Ma’aden has not confirmed the above. In southeast Asia, it is understood Venator has issued a purchase
tender for four 12,000 tonne cargoes of sulphuric acid, for delivery
Three traders were linked to one cargo each, although none confirmed in Q4 this year.
their involvement.
The tender closes 11 August.
ASIA
In the Chinese domestic market, supply remains tight in Shandong The volumes will likely supply Venator’s Malaysian titanium dioxide
Province, on a combination of a busy export timetable for Humon (TiO2) production lines.
Smelting - which features a 13,000 tonne and two 18,000 tonne
cargoes loading August - and strong downstream demand. Venator has not confirmed the above.

The 18,000 tonne lots are heard bound for India, and the 13,000 The southeast Asian acid range is stable.
tonne for Indonesia. ❯❯
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 World sulphuric acid

❯❯ MARKETS (continued)

In India, Greenstar Fertilizers has taken possession of approximately FREIGHT RATE INDICATIONS
20,000 tonnes of sulphuric acid on the Chemroad Sakura, which $/tonne Tonnes (‘000)
docked last week at Tuticorin. NW Europe US Gulf 28-38 15-20
NW Europe North Africa 17-24 15-20
It is thought the tonnes are of Chinese origin - potentially smelter
NW Europe Brazil 33-38 15-20
acid sourced from Humon Smelting and shipped via trader Wilson
International. NW Europe Chile 58-66 15-20
China Chile 70-88 20-30
This is unconfirmed. China India 34-38 24-27
S Korea/Japan Chile 83-89 18-25
The Indian CFR import range is stable S Korea/Japan US Gulf 63-71 18-25
S Korea/Japan India 34-38 19-20
AMERICAS
S Korea China 22-23 15-20
In Canada, the employee strike at Vale’s Sudbury operation is ending
SE Asia India 38-48 10
as a new five-year collective bargaining agreement was signed late
on 3 August. SE Asia India 30-32 20
Philippines Indonesia 20-22 18-20
Workers will return on 9 August, and the idled plant will begin a
return to production over the next several weeks.
It was heard Kennecott will undergo a short maintenance that will
The union vote passed with 85% of voting members in favour of the reduce production for about a week. This is unconfirmed by the
agreement. company.

The strike begun on 1 June, and caused a rapid depletion in sulphuric The INEOS sale of its European sulphuric acid assets will not affect the
acid supplies in the US. There had been wide speculation in the market US, it is understood. INEOS Calabrian plant in Port Neches, Texas, does
that the strike could go on for much longer. not produce sulphuric acid.

Wildfires in Canada continue to disrupt some transportation logistics. LATIN AMERICA

In the US, little new activity was heard in the market this week.
Suppliers continue to receive requests for large amounts of spot
tonnes.
Import tonnes remain difficult to come by, and it was understood
volumes were agreed in the past week at a higher price.
In Chile, all eyes in the global sulphuric acid market are on Chile this
week, as the threat of a strike at the Latin American nation’s largest
copper mine, Escondida, looms.
According to local media on Sunday, Union Number One at the BHP-
owned copper mine have voted 99% in favour to strike, after rejecting
the metals major’s final contract offer over the weekend. ❯❯

SULPHURIC ACID SHIPMENTS

Buyer Port Seller or producer Origin Tonnes Basis/ Vessel Arrival

‘000 Freight
IFFCO Paradip, India TBC Hibikinada, Japan 19.9 TBC Chemroute Pegasus 16-Jul
TBC Mejillones, Chile TBC Fangcheng, China 30 High-60s Elnore H1 July
FACT? Tuticorin, India Humon Smelting Longkou, China 18 Mid-30s Southern Unicorn 1-18 Jul
OCP Jorf Lasfar, Morocco Bagfas Samsun, Turkey 19 17.5 TBC 25-30 July
IFFCO Paradip, India Korea-Zinc? Onsan, South Korea 19 TBC Global Pioneer 26-Jul
FACT? Tuticorin, India TBC Zhangjiagang, China 19 TBC FSL New York 27-Jul
IFFCO Paradip, India TBC Fangcheng, China 7 TBC Chem Peace 29-Jul
CIL Vizag, India PASAR? Isabel, Philippines? 10 TBC Celsius Montreal 29-Jul
CIL Vizag, India TBC Longkou, China 18 TBC Southern Unicorn 31-Jul
CIL Vizag, India Korea-Zinc? Onsan, South Korea 20 Tbc Fairchem Conquest 31-Jul
Greenstar Tuticorin, India Humon/Wilson? China? 20 TBC Chemroad Sakura 30-Jul
CIL Vizag, India Korea Zinc? Ulsan, South Korea 10 TBC Saehan Jasper 03-Aug
TBC Map Ta Phut, Thailand TBC Fangcheng, China 18 TBC TBC 1-10 Aug
FACT? Tuticorin, India Humon Smelting Longkou, China 19 TBC Southern Unicorn 2-9 August
MCFL New Mangalore, India TBC TBC 8 TBC Ocean Chemist 8 Aug
Innophos? Coatzacoalcos, Mexico Asturiana de Zinc Aviles, Spain 17-18 TBC TRF Kirkenes August
OCP Jorf Lasfar, Morocco Boliden? Pori or Ronnskar 19 24 TBC Mid-August
Ma'aden? Ras-al-Khair, Saudi Arabia Two Lions? TBC China 20 TBC TBC H1 August
Mid-
OCP Jorf Lasfar, Morocco TBC TBC China 30 TBC TBC
September

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 World sulphuric acid

❯❯ MARKETS (continued)

The next step is five to 10 days of government-mediated talks, in 18,000 tonnes of sulphuric acid, for H1 November delivery.
effort to stave off a strike by around 2,300 workers. No agreement has yet been heard.

Sulphuric acid spot availability has been tight since early 2021, and This is unconfirmed.
Chilean import demand was expected to spike in H2.
In Brazil, it is understood a 19,000 tonne sulphuric acid cargo has
Many Chilean copper smelters pushed maintenance turnarounds back been sold to an unspecified buyer at $250/tonne CFR Brazil, for Q4
repeatedly from Q2 and Q3 into Q4, to better take advantage of firm delivery.
copper futures prices throughout the year.
This is unconfirmed.
As such, a glut of maintenance outages in the same three-month
period was already expected to lead to increased acid import demand Mosaic tendered late last week for 18,000 tonnes for delivery H2
to Mejillones. October, and was heard to have re-tendered since.

However, a strike at Escondida - a net consumer of sulphuric acid This is also unconfirmed.
- may free-up a large volume of acid tonnes during any downtime,
potentially lessening import demand and balancing the domestic The Brazilian CFR range has increased.
Chilean acid market, despite the smelter turnarounds.
Follow Andy Hemphill on Twitter @Andy_ICIS_Fertz for tweets
In Argentina, it is understood Bunge closed a tender on 23 July for on the sulphuric acid market.

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World sulphuric acid

Related markets
PRICES IN MARKETS RELATED TO SULPHURIC ACID
1 Year Ago 1 Month Ago Current Trend/Notes
Copper, cash buyer LME ($/tonne) 6,440 9,528 9,504 Weaker
Nickel, cash buyer LME ($/tonne) 13,888 18,541 19,324 Weaker
Zinc, cash buyer LME ($/tonne) 2,304 2,950 2,971 Firmer
Crude Oil, WTI spot ($/bbl) 43.16 74.57 69.78 Weaker
Natural Gas, Henry Hub ($/MMBtu) 2.193 3.637 4.027 Firmer
DAP, FOB US Gulf export spot ($/tonne) 320-325 650 650 Stable
Sulphur, solid CFR China spot ($/tonne) 69-72 210-217 210-217 Stable
Sulphur, solid FOB Middle East ($/tonne) 50-52 178-181 169-174 Stable
Sulphur, solid FOB Vancouver ($/tonne) 55-60 175-181 175-178 Stable
Sulphur, molten CFR Tampa ($/LT) 57.50 192 195 Q3 contracts

CRUDE
Crude prices fell over the last week with concerns rising over a higher
number of coronavirus cases as the Delta variant spread. The OPEC+
boost in supply in August added further pressure.
SULPHUR
Much of the attention in the sulphur market was on the announcement
of August posted prices from the Arab Gulf’s producers. Muntajat
announced the Qatar Sulphur Price (QSP) at a decline of $15/tonne
from July. Some have suggested that the sharp decline makes up for the
rather high price set in July, compared to other producers in the region.
In China, the import market remained quiet. Domestic activity
continued, with prices fluctuating in a narrow range during the week.
Sentiment appeared positive, with Sinopec increasing its Puguang
Gas field offer prices. In India, PPL has issued a purchase tender for
150,000 tonnes (+/-10%) of granular sulphur to be delivered annually
in the next two years. There was some activity in southern Africa, with
a total of 30,000 tonnes heard sold to Mozambique, ex-Arab Gulf.
PHOSPHATES
The phosphates market is slowing down, as most regions are going
through a seasonal lull. In India, there are some buyers in the market
for DAP, but the buying appetite remained muted due to the tight
availability and the high international prices. Fertilizer demand from
farmers in India is strong due to the good monsoon, but offers for
imported product are scarce. Producers from Morocco, Jordan and
China have no product to offer to India.
In China, producers are now focusing on the domestic market. There
is more demand emerging in Pakistan, but buyers will have to wait for
product to become available in the market. In Brazil, the MAP market
is lacklustre as demand for the soybean season is finished. Import
business is expected to pick up later in the year for the next season.
On the supply side, most producers are sold out for August.
AMMONIUM SULPHATE
In the Baltics, 7,000 tonnes of granular AS were understood sold to
a trader, destined to Brazil. In Europe, Fibrant declared force majeure
on caprolactam (capro) from its Geleen plant in the Netherlands amid
flooding in the region. There is no force majeure on AS. However,
production has reduced to 50-60% of capacity.
A supplier sold 4,000 tonnes at an equivalent of $217/tonne FOB. A
sale was heard concluded to southern Europe, which netted back to
$221/tonne FOB, for shipment in late-August to early September. In
Spain, availability is thought to be tight, as buyers are now looking for
additional tonnes in northwest Europe.
In China, Fibrant is said to have sold 5,000-6000 tonnes at $202/ ❯❯

WORLD SULPHURIC ACID WEEKLY | 4 August 2021 | www.icis.com 5

 World sulphuric acid

❯❯ RELATED MARKETS (continued)

tonne FOB to the Philippines. Another sale was heard in the north LME COPPER PRICES
from a factory to a trader at $197-200/tonne FOB China from Nanjing.

CAPROLACTAM
Spot discussions in Asia were few, as spot supply was extremely
limited. There were some ongoing negotiations for August contract
prices, which contributed to the fewer spot discussions in the week.
Buying incentives were low as nylon producers continued to struggle
with weak sales during the typical summer lull. In the Chinese domestic
markets, demand was compressed amid a reduction in downstream
nylon operating rates.

July contract price negotiations in Europe finalised between a rollover

and decreases. Some prices, especially those settled earlier in the
month, were driven downwards by the July decrease for feedstock
benzene, amid more balanced supply in the earlier part of the month.
But the market tightened again when Fibrant declared force majeure
on capro and cyclohexanone from Geleen, the Netherlands.
LME ZINC PRICES

SMELTER/BURNER TURNAROUNDS
Company Location Acid tonnes/year Type Timing
Closed by government order
Vedanta Limited Tuticorin, India 1,200,000 Cu on 28 May 2018
BHP Olympic Dam, Australia 600,000 Cu/U/Au/Ag August 2021 to February 2022
Pan Pacific Copper Hibi, Tamano, Japan 260,000 Cu 22 October to 25 November 2021
Noracid Mejillones, Chile Approx 750,000 S burner October 2021, unspecified

World sulphuric acid

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