U.S. Gulf:
Market players reported Gulf import sulfuric acid values in the $150-$155/mt CFR range, increasing from $135-$140/mt CFR in the prior report. Talks for the next round of business were rumored up to $190/mt CFR, although most players expected concluded pricing to land closer to the mid-$170s/mt CFR.
Gulf Coast:
Sources noted Gulf Coast sulacid contracts in the $85-$110/st DEL range for 2021 agreements.
Midwest:
Pricing stood at $85-$110/st DEL for Midwest delivery, sources said, steady from the prior report.
West Coast:
West Coast contracts were noted in the $100-$130/st DEL range.
Brazil:
Recent Brazil import pricing was noted firming to $180-$185/mt CFR, increasing from the prior $165-$170/mt CFR level.
China:
New power consumption restrictions will force a number of tin, aluminum, and zinc smelter shutdowns in China’s Yunnan province in June, Reuters reported. May drought conditions were blamed for thinning the region’s famously prodigious hydroelectric power supply.
The restrictions were reported to affect only privately owned smelters, and would not apply to state-run facilities. As a result, tin production was projected to be reduced by an estimated 1,000-2,000 mt. China’s total tin output was noted at approximately 15,300 mt in April. Heavy rains in the June forecast were anticipated to remove the power restrictions.
Operating rates for primary lead smelters located in Henan, Hunan, and Yunnan provinces softened 1.3 percentage points for the week ending May 28, Shanghai Metals Market reported, to 60 percent from the week-ago 61.3 percent.
The declining output was primarily attributed to capacity reductions at Yunnan Zhenxing and Tongfu, both reportedly limited by local Yunnan power restrictions. A fresh maintenance turnaround begun by Yunnan Lead Oxide was expected to conclude in mid-June.
Secondary smelter operating rates for facilities located in Jiangsu, Anhui, Henan, and Guizhou provinces moved 2.89 percentage points higher, however, to 60.41 percent. Environmental restrictions noted curbing outputs in Jiangxi were projected to end in the week ahead, likely further lifting outputs in the short term.