US Gulf:
The worsening power crisis in Europe could impact a source of sulfuric acid to the US Gulf, Bloomberg reported, as a number of aluminum smelters make the choice to dial back production in the face of soaring energy costs.
With aluminum smelting requiring about 40 times the amount of energy of copper, European aluminum output was noted falling to the industry’s lowest levels since the 1970s in September. Numbers are projected to decline further as the year wears on.
Aluminium Dunkerque Industries France, Europe’s largest aluminum smelter at 290,000 mt/y, on Sept. 6 announced production cuts totaling 22%. The curtailment was expected to be completed by Oct. 1.
Later in the week, Speira GmbH announced a 50% production cut at its aluminum smelter in Germany, anticipated to be completed in November, while preparations were underway to curtail production at the 175,000 mt/y Norsk Hydro ASA smelter in Slovakia by the end of September.
Despite the production cuts, lower sulfur market prices were universally expected to drag Gulf import sulfuric acid values lower in the next round of business. While sources described a quiet market in advance of the upcoming bidding season, indications were floated in a wide $140-$200/mt CFR range, with most agreeing that prices would soften to at least the $160-$180/mt CFR level in the short term.
Gulf Coast:
Sulfuric acid delivered by rail to locations along the US Gulf Coast were reported in a wide $195-$280/st DEL range for the full 2022 contract year.
Midwest:
Midwest sulacid pricing for full-year contracts was quoted at parity to the Gulf Coast at $195-$280/st DEL.
West Coast:
Pricing for the 2022 contract year was noted at $185-$270/st DEL.
Brazil:
Brazil price ideas were heard in the $170-$190/mt CFR range, below $200-$210/mt CFR reported previously.