Sulphuric acid: Indian buyers upbeat on smelter restart

Indian sulphuric acid buyers are cautiously optimistic that a restart of the Vedanta-owned Sterlite Copper smelter in Tuticorin will improve domestic acid availability next year.

The impact on the domestic sulphuric acid market has been significant because of limited supply options in the region. The smelter produces 1.1mn t/yr sulphuric acid and is only domestic producer of phosphoric acid for non-captive use.

Initial reaction from domestic market participants is of cautious optimism, but immediately following the restart ruling from India's environmental court the National Green Tribunal, Tamil Nadu's environment and pollution minister announced that the government will challenge the order in the Supreme Court.

Bureaucratic obstacles could see the start-up of the smelter pushed to mid-2019, according to market participants.

Following the shutdown earlier this year, Sterlite Copper declared a force majeure on sulphuric acid deliveries, which pushed consumers into the international spot market for not only sulphuric acid but also sulphur and finished fertilizer products to cover production shortfalls.

Indian spot sulphuric acid prices are at $95-105/t cfr, flat both from a week and month earlier but up by 113pc against the previous year.