Tight supplies limit South Korea’s 1Q sulacid exports
South Korea exported 583,400t of sulphuric acid during January-March, 5pc less than a year earlier, according to GTT data, because of production issues and a scheduled turnaround.
Sporadic production issues at LS Metals and Materials' Onsan smelter from last year's final quarter reduced export availability from South Korea, pushing buyers to source cargoes from alternative origins like Japan or China. The producer also carried out a scheduled month-long maintenance in March, further cutting production.
Spot fob South Korea/Japan prices hovered between $5-13/t fob during this year's first quarter. This provided some much needed stability to prices compared with a year earlier, as high inventories at producers pushed prices into negative territory to a low of -$9/t fob on 23 February 2023.
Shipments to India and Thailand fell by 45pc and 21pc from a year earlier to 116,000t and 88,100t respectively, while exports to Saudi Arabia also fell by 78pc to 4,800t. Shipments to Chile more than trebled from the previous year to 161,200t, with the bulk of the cargoes booked to cover annual contracts. Deliveries to mainly high-pressure acid leaching projects in Indonesia rose by 51pc to 76,800t, to supplement operating rates before the start-up of several sulphur burners.
South Korea's sulphuric acid shipments in March rose by 5pc from a year earlier to 192,700t, following a round of spot buying from Indonesia and a shutdown at a sulphur burner in Vietnam.
Exports to Indonesia in March more than trebled against last year to 39,000t, following a round of spot buying from buyers like stainless steel producer Tsingshan. Exports to Vietnam also increased by 23pc to 9,200t, with cargoes replacing lost supplies because of the closure of a sulphur burner. Exports to India and Thailand slipped by 54pc and 63pc to 37,400t and 13,900t respectively.
Related news posts
Indonesia to lift sulphur imports on EV battery demand
Indonesia to lift sulphur imports on EV battery demand
Singapore, 9 September (Argus) — Indonesia expects to boost its sulphur imports in the second half of the year because of increased high-pressure acid-leaching (HPAL) operations to support the growing demand for electric vehicle (EV) batteries. Sulphur is used in sulphur burners to produce sulphuric acid, which is used to separate nickel and cobalt from ore in the HPAL process to produce mixed hydroxide precipitate (MHP). MHP is the main feedstock to produce nickel sulphate and nickel cathode, which are the feedstocks for battery, special steel and nickel-based alloy production. Indonesia imported 41pc more sulphur in January-July this year, totalling 1.91mn t, the latest GTT data show. Deliveries from the UAE and Canada more than doubled from a year ago, reaching 478,100t and 258,300t respectively. Imports from Saudi Arabia more than tripled on the year to 609,300t. Sulphuric acid imports over the same period fell by 14pc on the year to 641,700t, after several buyers started new sulphur burners and switched to buying sulphur. Some importers also switched to buying lower priced domestic product following a rise in import offers because of supply constraints in east Asia. Sulphuric acid deliveries from China and the Philippines fell by 56pc and 47pc on the year to 175,700t and 58,800t respectively. Sulphur demand rose this year following the expansion of sulphur burning operations at Obi Island and Sulawesi. Chinese nickel producer Ningbo Lygend's Indonesian subsidiary Halmahera Persada Lygend reached full capacity at its ONC project in north Maluku province on 2 September, just two months after starting operations. This latest expansion brings Lygend's total nickel capacity by HPAL to 120,000t/yr, compared with an estimated 55,000t/yr a year ago. Chinese producer Green Eco-Manufacture's (GEM) QMB HPAL project is also expected to increase its sulphur demand by around 570,000t/yr by the end of 2024 with the start-up of two sulphur burners in the Indonesia Morowali Industrial Park (IMIP). By Deon Ngee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Methanex to acquire OCI’s methanol business for $2bn
Methanex to acquire OCI’s methanol business for $2bn
Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Ivory Coast’s Intercoton issues NPK, urea buy tender
Ivory Coast’s Intercoton issues NPK, urea buy tender
London, 6 September (Argus) — Ivory Coast cotton producers association Intercoton is understood to have issued a tender to buy 102,000t of 15-15-15+6S+1B and 30,720t of urea, closing on 7 October. Intercoton is seeking 11,500t less NPKSB and 2,380t less urea than its request under its large-scale tender last year, which it awarded to 16 suppliers . By Nykole King Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Kazakh sulphur railings curbed by August maintenance
Kazakh sulphur railings curbed by August maintenance
London, 6 September (Argus) — Kazakh sulphur delivered to sea ports along the Russian rail network fell by 3pc in August, reflecting maintenance at the Tengiz oil field, Russian rail data show. Rail deliveries from Tengiz dropped by 23pc on the month to 155,000t, with 133,000t heading to Russia's Baltic port of Ust Luga, and 22,000t to Georgia's Black Sea port of Batumi. Operator TCO said on 3 September that it has completed annual Tengiz maintenance . The month-long work was carried out on two of five production trains. But sulphur output from Kazakhstan's Kashagan oil field rose in August, with rail deliveries up by 19pc, at 219,000t. Some 119,000t was sent to Ust-Luga, and 61,000t to Taman, 35,000t to Kavkaz and 4,000t to Batumi — all on the Black Sea. Kashagan will undergo three-four weeks maintenance from around 1 October, which will lead to lower sulphur output. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more