Prediction of the 2022 Sulfur Industry Chain Market Exchange Conference: Sulfuric acid prices will stabilize after falling

"The price of raw material sulfur is expected to fall, and coupled with the lack of downstream fertilizer demand, it is expected that the price of sulfuric acid will continue to declin.

In the first half of this year, the domestic sulfuric acid market fluctuated after a sharp rise, and the price was much higher than the average level in the past five year.

IHS Markit analyst Li Huimin believes that the increase in the price of sulfuric acid in the first half of the year was mainly due to the shortage of sulfur supply and the skyrocketing price of sulfur caused by the conflict between Russia and Ukraine, and the cost of sulfuric acid was strongly supporte.

"However, with the downturn of the sulfur market in July, the price plunged from 4,000 yuan to below 1,000 yuan, the cost of sulfuric acid weakened, and the price fell rapidl.

From the perspective of raw materials, sulfur stocks are under great pressure, and port stocks have increased from 25 million tons at the end of February to the current 65 million tons, so it is difficult for short-term sulfur prices to ris.

From the perspective of demand, the current international demand for phosphate fertilizers is in the off-season, and domestic dealers are not active in purchasing, and the inventory of phosphorus and compound fertilizers has increased, which is difficult to drive the growth of sulfuric acid deman.

In addition, the demand for sulfuric acid for titanium dioxide and anhydrous hydrogen fluoride will also grow steadily, and it is expected that the price of sulfuric acid will gradually rebound after the short-term correctio.