U.S. Gulf:
Market watchers continued to quote the recent Gulf sulfuric acid import market in a $105-$115/mt CFR range, steady from the prior report. Firming sentiment described in the market has not yet translated to increased pricing, sources said.
In the U.S. rail-DEL markets, West Coast tons were quoted at $110-$130/st DEL for 2018 contracts, while material destined for U.S. Gulf Coast delivery fell in the $100-$120/st DEL range.
Midwest market contracts continued in a wide $95-$145/st DEL range for 2018. Deals completed in late 2017 were heard coming at $95-$105/st DEL, while a mix of planned and unplanned turnarounds pinched supply early in the year, driving later contracts higher to $125-$145/st DEL.
U.S. Imports:
August sulfuric acid imports were down 7 percent, to 259,775 st from the year-ago 280,327 st. July-August imports were up 3 percent, however, to 563,238 st from 545,847 st.
U.S. Exports:
August sulfuric acid exports were down 25 percent, to 27,304 st from the year-ago 36,541 st. Canada topped the market with 17,527 st received, rising from 12,281 st posted for the year-ago. Mexico’s 4,861 st represented a sharp fall from 23,372 st in the previous year, while Suriname purchased 3,307 st after buying zero U.S. tons in the previous August.
July-August exports were up 1 percent, to 63,156 st from 62,507 st.
Brazil:
Brazil aluminum refining giant Alunorte announced that it has obtained permission to restart operations. The move comes a week after the Norsk Hydro-owned plant shut down due to a long-running pollution dispute with the government (GM Oct. 5, p. 18).
The facility was granted permission to run at 50 percent capacity, the same level it operated at prior to the shutdown. Alunorte’s restart will prevent the closure of the nearby Albras aluminum smelter, a 460,000 mt/y facility jointly owned by Norsk and Nippon Amazon Aluminum Co. That facility is also expected to run at 50 percent capacity.
Last-done on the Brazil spot sulfur acid import market continued to be heard at $110-$120/mt CFR, unchanged from the prior report. Sources described firmer sentiment, but said no new business has been done to test the new price ideas.
Canada:
Union workers halted negotiations during the week with the Alcoa and Rio Tinto joint venture ABI aluminum smelter, located in Quebec, citing differences on a number of “key issues.”
Smelter management locked out about 1,000 employees in January after the previous labor contract expired (GM Jan. 19, p. 16). A judge halted attempts to operate the facility with nonunion labor in May, leaving the facility with only one of its three potlines in operation. The plant is capable of producing 430,000 mt/y when all three potlines are running.