Imports spoiler domestic sulfuric acid market

China is the world's largest producer and producer of sulfuric acid. In the 21st century, the growth rate of China's sulfuric acid industry has further increased, and the average annual growth rate has reached 15%. In 2005, China's sulfuric acid production has accounted for 25% of global production. Under the impetus of China's rapid economic development, China's sulfuric acid industry is in the fastest period of development. However, at present, the impact of the relatively low import and import prices of sulphuric acid and sulphur on the domestic market has become the biggest problem affecting the normal development of China's sulphuric acid industry.
In 2005, the growth rate of China's sulfuric acid industry was accelerated, and the total sulfuric acid production was 44.622 million tons, an increase of 17.2% over 2004. The market price has dropped significantly, and the average price of the mainstream products (100% off) has dropped from 620 yuan (ton price, the same below) at the beginning of the year to 530 yuan at the end of the year, a decrease of 14.5%. China's sulphuric acid production is insufficient, and a certain amount of sulphuric acid still needs to be imported every year to meet the growing market demand. Due to the decline in the price of international sulphuric acid, especially in the international market for low-cost sales to China, the market price of sulphuric acid in China has rapidly declined, and the price decline has accelerated.
The long-term and large number of low-price imports will have a destructive impact on the structure of normal industrial development of the orderly sulfuric acid industry in China, and will affect the stability of China's economic development. If the current import situation cannot be effectively improved and controlled, the domestic sulfuric acid market price will also show a downward trend in 2006. In 2006, China's total sulphur imports will approach or reach 10 million tons, accounting for 22% of global sulphur production. Sulfuric acid production will account for 40% of China's total sulfuric acid production. The rapid increase in demand for sulfur in China will cause the fluctuation of supply and demand and price of sulfur in the world market. When the amount of sulfur imports in China accounts for more than 20% of the world's sulfur trade volume, the sulfur price in the world market will continue to rise, making China’s sulfuric acid industry Bigger risk. Therefore, it should be highly valued and moderately controlled.
China is the world's largest importer of sulphur. Sulphur imports from Canada alone account for more than 52% of total imports. Imported sulfur is mainly used for the production of sulfuric acid, of which more than 72% of sulfuric acid is used to produce fertilizers.
At present, on the one hand, the world's sulphur supply is increasing. On the other hand, China's sulphur demand is growing even more rapidly. However, the sulphur price will only fall when the supply exceeds demand. Sulphur prices will fluctuate with the increase and decrease of demand over the years. At the end of the 1970s, in the world with excess sulphur and low prices, many sulphuric acid enterprises in China changed the sulphuric acid production from sulphur to sulphuric acid, which led to a significant increase in sulphur prices. The import crush price for sulphur soared from 80 to 120 to 130. Dollars. Although the state provided financial subsidies for the import of sulfur, but due to the high cost of the final, sulfuric acid production companies have changed back to pyrite acid. This counter-repetition caused huge losses to the country and the enterprise. The current situation is strikingly similar to history. In recent years, many sulphur-burning sulphuric acid plants have been built in various parts of China, and the demand for sulphur is increasing day by day. At the beginning of this year, a number of sulphur-burning sulphuric acid plants were completed and put into operation in various places. This caused the world's sulphur supply to fall short of demand, and there was a situation of “having no market at all”. Now that there is goods available for sale, many sulfuric acid companies can't afford it. Because the excessive sulfur prices are unbearable for enterprises, only the suspension of production is awaited. Even under such circumstances, there are still a large number of sulphur-burning sulphuric acid plants currently under construction or ready to be built, including 600,000 tons/year of Yunnan Phosphate Fertilizer Plant and 600,000 tons/year of Guizhou Xiyang Special Fertilizer Plant, and 60 Phosphorous Group. 10,000 tons/year, 400,000 tons/year in Chongqing Fuling, 300,000 tons/year in Zhonghuang Company of Qinhuangdao, and 800,000 tons/year in Yunnan Phosphatic Fertilizer Industry Company. In other words, this year China will also add more than 3 million tons of sulphur-based sulphuric acid capacity, and the annual capacity of sulphuric acid production will reach 15 million tons.
Then, what is the world's supply of sulphur? Industry insiders believe that the world's sulphur production is increasing, but the output is not available, and the amount of sulphur-producing countries can increase the amount of shipment is the key to sulphur supply. At present, global sulfur production is approximately 40 million tons/year, and is expected to increase to 55 million tons in 2011. Due to insufficient sulfur storage capacity, its storage and transportation problems will become increasingly prominent. In 2001, the volume of solid sulfur stocks reached the highest value in 20 years. Due to many factors such as transportation, environmental protection, and production costs, the increase in the supply of sulphur-producing countries will depend on the market price trend. In other words, the world's sulfur will never be satisfied by the increase in demand.
The China Sulfuric Acid Association Secretary-General Qi Hao stated that the world's sulphur is by no means inexhaustible, its production and processing volume is basically fixed, and the growth rate of sulphur demand in China is inconsistent with the increase in world sulphur supply. Excessive demand and long imports of sulphur are an unfavorable factor in the volatility of sulphur prices. At present, the price of imported sulphur in China has dropped from more than 90 US dollars to around 85 U.S. dollars. However, it is still difficult to predict how long such prices will last. It is expected that the price of sulphur will fall back to around 80 U.S. dollars in the third quarter. Therefore, the sulphuric acid plant should be developed in a balanced manner and must not be replaced overnight. The relevant national authorities should organize follow-up investigations on the status of sulphur-importing enterprises, guard against excessive importation and over-construction and over-engineering, strengthen the policy guidance and macro-control of the entire industrial chain of pyrite-sulfuric acid-fertilizer-agriculture, and help domestic enterprises adapt and Avoid international market risk.

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