Sulfuric acid stocks will be released effectively in March

At present, the difference between the North and South markets, the price is the most direct embodiment. The sulfuric acid market, which continued to decline, took the lead in local signs of recovery, presenting a situation of north warm and cold south. This made the industry see the hope of a comprehensive recovery of the sulfuric acid market. The sulphuric acid market in the northern region is affected by the price increase of raw materials, limited production of some raw materials for sulfur-based sulphuric acid production, and mild start-up expectations for fertiliser demand. It has slightly increased prices in varying degrees. 98% of the mainstream price of sulfuric acid in the 550 ~ 600 yuan per ton, some companies reached the high-end price of 700 yuan per ton. However, due to the decrease in the demand for electrolytic manganese and hydrofluoric acid in the southern region, and the continued shutdown of many small chemical companies, the market is still weak. The mainstream price is around 450 yuan per ton.

Although we are now looking at the uneven heat, I expect that the domestic sulfuric acid market is expected to take the opportunity of the north to pick up, driving the overall market to gradually improve. Even if the current sluggish southern market, with the warmer weather, the downstream fertilizer, chemical market started one after another, in March sulfuric acid stocks will be effectively released.

The reason for this is that, first of all, the company's inspection and maintenance output fell Since February, the domestic production of sulfuric acid has dropped continuously, which is mainly caused by the shutdown of sulfuric acid enterprises in local areas. For example, the sulphuric acid enterprises in Shandong's Jiaodong area have been overhauled and suspended, and the operating rate of sulfuric acid enterprises in Guangxi has been continuously reduced due to cadmium pollution incidents. In particular, in the first half of March, sulfuric acid enterprises in Hebei, Shandong, Henan, and Liaoning were overhauled and overhauled, resulting in a significant drop in production. Sulfuric acid prices rise.

Second, cost-driven price increases. Recently, due to the rebound of sulfur prices, the cost of sulfuric acid production has once again increased. It is understood that the price of sulphur has risen by more than 10.3% since the beginning of February, and the price of sulphuric acid has returned to the low level after a brief rebound in late February. At the same time, because of the price increase of refined oil products, transportation companies have once again increased their transportation costs, especially the cost of automobile transportation of some smelting acid and mineral acid companies that use pyrite ore as raw materials. This has increased the pressure on the cost of sulfuric acid enterprises, and began to limit production prices.

Again, downstream demand started. It is expected that the rate of start-up of fertilizer companies will be successively enlarged, thereby increasing the demand for sulfuric acid. At present, the demand for chemical fertilizers in the northern region has gradually increased. For example, in North China, the winter wheat returned to the top gradually, the negotiation atmosphere began to be positive, and the trading volume and prices both rose moderately; in the northeast region, with the start of fertilizer preparation at the grassroots level, some of the agents also began to replenish compound fertilizers; the demand for fertilizers in the Central Plains increased. Nitrogen fertilizer also increased in volume and price. In April, most small and medium-sized chemical companies will start production and increase the demand for sulfuric acid. The sulfuric acid market in the south will also gradually pick up in the chemical fertilizer and chemical markets.

In the end, merchants make up short-term good for the library. As northern sulfuric acid enterprises overhauled in March, the output decreased, and the inventory of production companies declined. At the same time, due to factors such as pre-market downturns and tight funding, downstream companies have maintained low inventory levels, coupled with the recent increase in demand, traders have also begun to increase their procurement efforts, and a round of supplemental stock prices is expected to go from north to north in April. The south started to form a short-term positive factor. In addition, the warming of the international sulphur market will also bring cost support to the international sulphuric acid market and promote further recovery of the domestic market.

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