Antwerp, Belgium- The demand dynamics for Sulphuric Acid in May 2023 have been significantly influenced by the reduced pressure on domestic manufacturers to decrease their production rate. Consequently, this has had an impact on the cost of Sulphuric Acid in the Belgium market, resulting in a depletion in price to USD 79 /ton for IR Grade FD Antwerp. The prevailing economic and political conditions have contributed to alleviating global supply constraints, which has further intensified the downward pressure on Sulphuric Acid prices. However, it is noteworthy that the decline in prices has been relatively modest, primarily due to weakened market demand for Sulphuric Acid.

The slump in Sulphuric Acid prices has been reinforced by several factors. Firstly, reduced feedstock Sulphur prices have played a role in the overall downward trend. Additionally, weakened freight charges and the availability of labour have exerted pressure on prices. Moreover, there has been a significant decrease in downstream demand for fertilizers and crude oil refining, further contributing to weak cost support.

Belgium, known as Europe's emerging logistics hub, has implemented measures to safeguard its supply chain. This move has not only protected the country's supply chain but also influenced the market sentiments surrounding Sulphuric Acid trading in the regional market.

Disruptions within the domestic market in Belgium have been witnessed, leading to a notable disturbance in the supply chain, thereby influencing market sentiments and resulting in abundance of products within the country. As a consequence of decreased demand from the downstream fertilizers market, there has been a marginal decline in Sulphuric Acid prices, which can be attributed to fluctuations in supply and the altering the purchasing fundamentals among the end-users.

In the face of an ambiguous future, data from Belgium indicates a persistent decline in global demand for Sulphuric Acid, providing some relief to the intricate network of supply chains that support the world's largest economy. Moreover, apprehensions regarding potential weakness in future demand have contributed to a decrease in crude oil prices, consequently exerting downward pressure on the cost of ship fuel.

As a result, market sentiments related to Sulphuric Acid in Belgium have experienced a gradual easing. Various reports from diverse sources have consistently indicated a downtrend in crude oil production, directly impacting the pricing dynamics of Sulphuric Acid. The decrease in crude oil production has added to the downward pressure on prices, as it is a vital component in the production process.

Furthermore, traders have reported a significant downward adjustment in quotations, primarily influenced by prevailing shipping conditions during the current week. The market has witnessed abundant product availability, and supply constraints in the region have been limited. These factors have played a crucial role in driving the price decline of Sulphuric Acid.