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Pakistan's Mannheim SOP producers have cut run rates to 50-75pc from 80-90pc, driven by tight supply of sulphur from Iran on the back of the US-Iran war, according to producers.
Around 0.6t of sulphuric acid or 0.2t of sulphur is needed to produce 1t of SOP using the Mannheim method. Mannheim producers in Pakistan rely heavily on sulphur imports from Iran as feedstocks via cross-border trade, as domestic supply is insufficient to sustain demand. The US-Iran war has pushed delivered sulphur prices sharply higher. Indications for Iranian sulphur via cross-border truck deliveries are now at an equivalent to $750-780/t cfr according to one importer. Domestic prices for sulphur-based sulphuric acid surged to 300,000 rupees/t ex-warehouse ($1,077/t) from Rs100,000/t ex-warehouse Lahore and Faisalabad in February, before the war.
Barket Fertilizers has operated at a reduced rate of 75pc since late March at its 50,000 t/yr plant at Port Muhammad Bin Qasim. The producer plans to ramp up production to full capacity on 15 April after securing sufficient feedstocks.
Fellow producer Agven is operating at 50pc at its 20,000 t/yr Gwadar plant in April because of a planned turnaround that will last until end of the month. The producer has yet to decide whether to return to full rates as this depends on sulphuric acid price and availability.
Other producers, including Suncrop and Akbari, are operating at 50-75pc at their 40,000 t/yr plant in Rahim Yar Khan and 20,000 t/yr plant in Bhikhi, respectively, because of feedstock supply tightness and firm prices.
But lower run rates are unlikely to cause SOP shortages, as buyers could switch to buying more MOP. Domestic bagged granular SOP prices are now at 260,000-280,000 rupees/t ($934-1,005/t) ex-warehouse, and buyers are likely to move to granular MOP if prices rise further, one producer said.
