Chemical Profile - Sulfuric Acid (Virgin)

31 October 2005 00:01  [Source: ICB Americas]

DEMAND

2003: 41,917,000 tons; 2004: 44,336,000 tons; 2008: 47,615,000 tons, projected. Demand equals production plus imports (2003: 999,000 tons; 2004: 2,641,000 tons) less exports (2003: 226,000 tons; 2004: 225,000 tons).

GROWTH

Historical (1999–2004): -0.8 (negative) percent per year; future: 1.8 percent per year through 2006. Source: CMR

PRICE

Historical (1999–2004): High, $60 per ton, virgin acid, 100 percent basis, tanks, Gulf, works; low, $30 per ton, same basis. Current: $55 to $65 per ton, same basis. Sources: Producers

USES Fertilizers, 75 percent; mining, 4 percent; petroleum alkylation, 4 percent; inorganic chemicals and pigments, 3 percent; iron & steel, 1 percent; pulp and paper, 1 percent; organic chemicals, 6 percent; miscellaneous, including rubber and plastics, water treatment and batteries, 6 percent. Source: CMR

MARKET PERSPECTIVE

The merchant sulfuric acid market has been balanced to tight, fluctuating with time and geographical location. Between 25 to 30 percent of sulfuric acid produced goes into the merchant market. One factor behind the tightness is inconsistent supply from smelters. Weak metal prices in recent years have caused smelter operation curtailments.Seventy-five percent of sulfuric acid is used in fertilizer production, and most of this is ammonium phosphate. Fertilizer production is operating above 90 percent of capacity and growing at 2 percent annually. Other growth areas are petroleum alkylation, organic chemicals (mostly caprolactam and methyl methacrylate), and pulp and paper. Application segments in decline are mining, iron and steel, and inorganic chemicals, including sulfate process titanium dioxide.

OUTLOOK

For the forecast period the market is expected to remain balanced to tight. Escalating fuel costs and surcharges and rising rail freight costs will result in surcharges to delivered-price customers. Growth over the forecast period is predicted at 1.8 percent annually, supported mainly by fertilizer production.

— Mark Kirschner

Agrifos, Pasadena, Tex.	550
Agrium, Conda, Idaho	1,240
AK Steel, Middleton, Ohio	5
Akzo Nobel, LeMoyne, Ala.	275
BP, Texas City, Tex.	350
Cargill Fertilizer, Bartow, Fla.; Riverview, Fla.	4,945
CF Industries, Plant City, Fla.	2,305
ChevronTexaco, Barber’s Point, Hawaii	35
CITGO, Lake Charles, La.	140
ConocoPhillips, Lake Charles, La.	70
Cytec Industries, Fortier, La.	625
DuPont, Darrow, La.; La Port, Tex.; North Bend, Ohio; Richmond, Va.; Wurtland, Ky.	1,485
El Dorado Chemical, El Dorado, Ark.	110
Elementis Pigments, Easton, Penn.	15
General Chemical, Anacortes, Wash.; Augusta, Ga.; Newark, N.J.; Richmond, Calif.	895
Honeywell, Hopewell, Va.	430
IMC Global, Faustina, La.; New Wales, Fla.; Nichols, Fla.; South Pierce, Fla.; Uncle Sam, La.	10,185
J.R. Simplot, Lathrop, Calif.; Pocatello, Idaho	1,500
Koch Sulfur Products, Rosemont, Minn.	110
Lucite, Beaumont, Tex.; Belle, W.Va.; Memphis, Tenn.	530?
Marsulex, Cairo, Ohio; Oregon, Ohio	270
Mississippi Phosphates, Pascagoula, Miss.	1,045
Motiva Enterprises, Deleware City, Del.	550
Ohio Edison, Niles, Ohio	10
PCS Nitrogen, Geismar, La.	500
PCS Phosphate, Aurora, N.C.; White Springs, Fla.	6,970
Peak Sulfur, Beaumont, Tex.; Fort ?Madison, Iowa; Riverton, Wyo.; Shreveport, La.; Tulsa, Okla.	730
PVS Chemicals, Chicago, Ill.; Buffalo, N.Y.	210
Rhodia, Baton Rouge, La.; Baytown, Tex.; Dominguez, Calif.; Hammond, Ind.; Houston, Tex.; Martinez, Calif.	3,320
Rohm and Haas, Deer Park, Tex.	725
SF Phosphates, Rock Springs, Wyo.	1,190
Southern States Chemical, Savannah, Ga.; Wilmington, N.C.	215
Tampa Electric, Mulberry, Fla.	70
Tesoro, Martinez, Calif.	140
U.S. Agri-Chemicals, Ft. Meade, Fla.	1,465
Valero Energy, Dumas, Tex.; Wilmington, Calif.	195
Wheeling-Pittsburgh Steel, Follansbee, W.V.	30
Total	8,835

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