Tag: Sulphuric Acid

Guizhou Phosphorus Chemical Group has begun site clearing work in preparation for a major mining and downstream fertilizer and chemical project at Kaiyang in Guizhou province started. It is planned to complete the construction of the first phase of the 600,000 t/a lithium iron phosphate (LFP) production line by the end of 2025. The whole scheme is projected to cost $4.6 billion, with participation from the Guiyang Municipal Government and Guizhou Phosphorus (Group) Co., Ltd., China National Nuclear Huayuan Titanium Dioxide, China Mining Resources Group and other companies. The project comprises 1.4 million t/a of ferrous sulphate heptahydrate production, with co-production of 400,000 t/a of titanium dioxide, 600,000 t/a of iron phosphate, 600,000 t/a of lithium iron phosphate, 150,000 t/a of lithium carbonate, 10,000 t/a of lithium fluoride, 20,000 t/a of lithium hexafluorophosphate, 100,000 t/a of copper smelting, and phosphogypsum decomposition to produce sulphuric acid, with power cogeneration and other public utilities. Phosphate ore is processed to produce iron phosphate, which is then combined with ferrous sulphate, a byproduct of titanium dioxide production, to produce lithium iron phosphate, which is ultimately used in new energy vehicle batteries. It is expected that the first batch of production lines will be put into production in 2026 and the entire industry chain will reach full production in 2028. After completion, Guizhou will become the world's largest production base of phosphorus-based positive electrode materials, accounting for more than 30% of the national market share.

The end of June saw declines in sulphur prices in many regions amid subdued global demand across regions. Most import markets are sufficiently covered through July at least, resulting in limited activity while supply increases. These conditions have exerted downward pressure on prices as bearish sentiment spread across regions.

Titanium dioxide is one of the major chemical uses for sulphuric acid outside of phosphate and metals processing, and sulphate route plants remain concentrated in China.

Adani Group subsidiary Kutch Copper has commenced operations at its new Mundra copper refinery and smelter, the company announced on 28 March. The company previously indicated an expected start-up by the end of Q1. The new smelter will help boost domestic supplies of copper, demand for which is robust from the construction, transport and power sectors in particular and likely to double by 2030, with the shift towards clean energy and electric vehicles. This first phase of the project will have around 500,000 t/a copper capacity, with a similar capacity planned to be added in the second phase by 2029.

It is reported that Tongling Nonferrous is planning production cuts this year given current record low treatment and refining charges (TC/RCs). CRU estimates that the company’s potential cutbacks will total 67,000 tonnes of copper for the year. However, the start-up of the Jinguan II and Chifeng Jinjian II projects could offset the reduction in concentrate demand at operational smelters. Tongling Nonferrous owns five operational smelters/refineries with a total of 1.28 million t/a blister capacity and 1.73 million t/a refined capacity, respectively. It is understood that the Chifeng Jintong 220,000 t/a smelter has cut operating rates by 10% since early March due to concentrate tightness.

Indonesia has become the epicentre of the world nickel industry, and is now seeking to raise royalty rates to capture more value from this. Will this impact upon the continuing expansion of HPAL capacity there?

The Sulphur Institute (TSI) held its World Sulphur Symposium in Florence from April 8th-10th.

Cornerstone Chemical Company has sold its sulphuric acid operations to Ecovyst, a global provider of advanced materials, specialty catalysts, sulphuric acid and regeneration services based in Malvern, Pennsylvania. Ecovyst's business structure includes two core business units: Advanced Materials and Catalysts (AM&C) and Ecoservices. Ecovyst more than 900 employees throughout its 12 facilities across multiple locations worldwide and its Ecoservices division is a North American provider of sulphuric acid and sulphuric acid regeneration services.

Sulphur markets have been on a tear over the past few months, driven by strong demand in Asia, with buyers primarily sourcing from the Middle East and Canada through late 2024 and into the early months of 2025. Steady buying from Indonesia and China, the two largest importers of sulphur, appears to have supported the market, in China’s case mainly for phosphate production as well as a variety of industrial processes, and in Indonesia’s case to feed the high pressure acid leach (HPAL) plants that are producing nickel for the battery and stainless steel industries. Prices saw a notable rally following the Chinese Lunar New Year celebrations. Nevertheless, this momentum finally began to shift as April began ago as the pace of price increases in Asia started to slow. As the spring fertilizer application season in China draws to a close, domestic prices began to drop, reaching the equivalent of a delivered price of around $272/t c.fr. As well as the narrowing window for spring application of phosphates, the decline was also driven by weakening demand amid uncertainty over tariffs and export restrictions. In southern China, phosphate producers continue to purchase import cargoes. A major phosphate producer in southwest China has been reported as having bought mainstream material at a price of $303/t c.fr, according to local market sources. Total sulphur port inventories in China had declined by 22,000 tonnes to 1.86 million tonnes by 16 April 2025. The volume at Yangtze River ports increased to 825,000 tonnes, while the port inventory at Dafeng decreased to 400,000 tonnes.

Chinese phosphate and battery chemical producer Chuan Jin Nuo Chemical (KMCJNC) has announced a $265 million plan to build a plant in Egypt to reduce its raw material and export costs. The company will construct facilities in the North African country to produce a range of intermediates and finished products, it revealed in its recent first-quarter earnings report. The plant will have a threeyear construction timeline. Planned capacities for the site are 800,000 t/a of sulfuric acid and 300,000 t/a of ammonium phosphate per year. Other core products will include phosphoric acid and sodium fluorosilicate. At full capacity, the plant is expected to generate over $41 million in net profit, according to feasibility studies.