Bullish Trends and Supply Dynamics in the Sulphuric Acid Markets of North America and Europe

Hamburg, Germany: The Sulphuric Acid market is experiencing bullish sentiments in both the European and North American regions due to a disrupted supply-demand equilibrium. In Europe, the bullish trend is driven by ongoing maintenance shutdowns and increased production costs, which are affected by a surge in upstream Crude Oil prices. These factors have tightened supply and pushed prices upward. Conversely, in the US, the Sulphuric Acid market is displaying a stable price trend at the higher end as suppliers' operations return to normalcy. This stabilization follows previous disruptions, allowing for a more balanced supply situation, albeit at elevated price levels due to lingering cost pressures and market adjustments.

In the European markets, the Sulphuric Acid sector saw a rise of 6.66% and reached USD 80/MT (FOB-Hamburg) by the week ending on July 12th. Despite the stable feedstock sulphur market, which would typically keep production costs unchanged, the surge in upstream Crude Oil prices drove up the production costs for Sulphuric Acid. Furthermore, the Aurubis’ Hamburg smelter was shut down for maintenance for the past few weeks, however, it resumed production after the conclusion of the scheduled maintenance. Further impacting the market are upcoming planned maintenance shutdowns at KGHM’s Glogow smelter, set to begin in mid-August, and Atlantic Copper’s Huelva smelter, scheduled for the last week of September and expected to last 15 days. These ongoing and upcoming maintenance activities are straining the supply chain of Sulphuric Acid, particularly affecting the downstream agrochemical sector. Additionally, the demand for Sulphuric Acid is bolstered by the ongoing peak summer driving season, further driving the market scenario upwards.

In the US, the Sulphuric Acid market is stable at a higher rate with no confirmed business reported for the current week. This stability contrasts with the bullish trends seen in other global markets, reflecting a return to a more balanced state in North America. The ease in the supply chain is attributed to Canadian suppliers resuming normal operations after experiencing output interruptions from mid-May into June. This resurgence in production has led to increased availability of Sulphuric Acid in the region, supported further by spot imports into the West Coast. These factors have contributed to maintaining stability in prices and supply levels, positioning the North American market differently from its European and global counterparts experiencing more pronounced upward trends.

According to ChemAnalyst, the Sulphuric Acid market is expected to see an increase in the European region in the upcoming weeks. Domestic availability of Sulphuric Acid is projected to remain tight in the third quarter, particularly in August, but improvements are anticipated later in the quarter as key smelters return from maintenance shutdowns. Meanwhile, in the US market, a bullish sentiment is expected due to the approaching hurricane season. This seasonal factor could potentially disrupt the supply chain of Sulphuric Acid, adding further upward pressure to market dynamics. These forecasts suggest continued volatility and strategic challenges for stakeholders in both regions as they navigate supply chain disruptions and market fluctuations.