Sulphuric acid demand weakens and prices weaken
In June, my country's sulfuric acid market demand was weak, supply exceeded demand, and the market faced greater pressure to maintain a narrow range of volatility and decline. The production and operation of sulfuric acid companies have not yet escaped the difficult situation. The sulfuric acid market is expected to remain in a low consolidation state in July, and prices are likely to decline further.
In June, as the agricultural materials such as fertilizers and pesticides entered the off-season of production and sales, the growth rate of sulfuric acid output declined slightly. The average operating rate of sulfuric acid plants was about 65%, and the average operating rate of production plants of some enterprises was at a low level of 50%. The enterprise extended the equipment maintenance time.
Due to insufficient market demand, coupled with the downward price of raw material sulfur, the mainstream ex-factory price of sulfuric acid (98%) runs around 300 yuan/ton. Compared with the average price of last month, the chain price decreased by 3.1%, and the market price showed a slight decline.
In July, my country's agriculture will gradually enter summer production, and chemical fertilizers and pesticides will enter a period of rapid growth in market demand, which will play a better balancing role for the sulfuric acid market. At the same time, the export volume and export orders of sulfate, chemical, textile and apparel industries maintained relatively stable growth, which will also ease the pressure on the sulfuric acid market. However, due to the poor macroeconomic environment, my country's sulfuric acid industry will still face a more difficult situation. Industry insiders predict that in the second half of the year, market demand will be sluggish, prices will decline weakly, and the international market trade environment will continue to deteriorate, which will still be a major problem faced by my country's sulfuric acid industry.
