Chemical producer Chemtrade expects sales prices for sulfuric acid and other sulfur-based products to offset feedstock costs, despite record-high sulfur prices, the Canada-based company said.
The second-quarter Tampa sulfur settlement reached a new record at $655/long tonne delivered.
Chemtrade said that increased selling prices of merchant acid helped to offset elevated raw materials costs. Meanwhile, both selling prices and demand for regen acid were supported by increased demand from refineries.
US Gulf coast refinery utilization has averaged over 95pc since the week ending 6 March, according to the US Energy Information Administration. The closure of the strait of Hormuz in early March cut off supplies of jet fuel and distillate from producers in the Middle East, supporting increased throughputs and higher exports from the US.
Higher sulfur costs have not reduced operations at the company's ultrapure acid facilities. It expects ramp-up of its ultrapure acid projects in Cairo, Ohio, and Tulsa, Oklahoma, to continue throughout 2026, with Chemtrade working with four semiconductor manufacturers for commercial agreements and quality certification.
But Chemtrade reiterated the likelihood of some customersswitching to hydrochloric acid from sulfuric acid for some applications such as mining and steelmaking, because of increased sulfur and sulfuric acid prices. The company also produces hydrochloric acid as part of its chlor-alkali business.
Chemtrade reported a $25.4mn profit in the first quarter, compared with a $49.1mn profit the same period a year earlier.
