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Large release of sulfuric acid production capacity, difficult balance between market supply and demand


At the 2013 Phosphorus and Sulfur Market Seminar held on April 22nd, data released by the China Sulfuric Acid Industry Association showed that from 2013 to 2015, a large amount of new sulfuric acid production capacity will be built and released, and the supply of sulfuric acid will be more abundant. The situation of oversupply in the market will become more severe. According to the China Sulfuric Acid Industry Association, a large amount of sulfuric acid production capacity has been released, but consumption growth is limited. Sulfuric acid plants without upstream raw materials and downstream product support will reduce production and stop production. In terms of smelting acid, approximately 7.5 million tons of equipment were completed and put into operation from 2011 to 2012.

 

From 2013 to 2015, approximately 4.5 million tons of facilities will be built, including Jinchuan Fangcheng, Shandong Dongying Lufang, Anhui Tongling Nonferrous Metals, Fuchunjiang, and Dingtong, as well as some medium-sized smelting acid plants supporting lead and zinc. By 2015, the smelting acid production capacity will increase by over 13 million tons. In terms of sulfur based sulfuric acid production, approximately 6 million tons of units will be built from 2013 to 2015, including Hubei Xingfa, Hubei Xinyangfeng, Guizhou Lufa, Guizhou Wengfu Zhijin, and Zhejiang Ningbo Xinfu. Mining acid production is limited by pyrite, and future production capacity growth is limited.

 

As of the end of 2012, the national sulfuric acid production capacity exceeded 100 million tons, of which sulfur based sulfuric acid accounted for 50%, smelting acid accounted for 26%, mineral based sulfuric acid accounted for 23%, and other sulfuric acid accounted for 1%.

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