Imported sulphur prices from low to high are intended to “regulate” China’s sulfuric acid industry to support the situation of pulverized iron ore enterprises

In the first day of July, Liang Shupeng, Sales Manager of Bajiazi Mining Co., Ltd. of Huludao City, Liaoning Province, completed sales of a pyrite at a price of RMB 200 per ton. However, he did not feel happy. Instead, he told reporters: “This price has been difficult for companies to go down. The price per ton of pyrite in the same period of last year was 240-250 yuan. The price has been declining so far this year. More than 20% drop."

Liang Liang believes that the decline in the price of pyrite is mainly due to the heavy import of sulphur abroad, which has caused serious impact on the downstream market. The reporter’s data obtained from the China Petroleum and Chemical Industry Association confirmed his statement. According to relevant sources of the association, the amount of sulphur imported from abroad reached 3.274 million tons in the first five months of this year, compared with 830 in the whole year of last year. Ten thousand tons.

According to Qi Jun, Vice Chairman of the China Sulfuric Acid Industry Association, the import of sulphur started in the mid-1990s and was mainly used for acid production. At the same time, it could produce steam as a by-product and generate electricity through joint production. Previously, our country was mainly based on pyrite acid. Sulfur began to import only a small amount, only 740,000 tons in 1997. However, at the time, the international sulfur producers were fancy to China's huge sulfuric acid demand market, which stimulated domestic demand for sulfur at a low price. As a result, sulfur was initially imported at less than $30 per ton. Due to the low price, many domestic sulfuric acid enterprises have changed their pyrite-based sulphuric acid production to sulphuric sulphuric acid, leading to an increasing demand for sulphur. By 2001, sulphur imports had increased to 3.38 million tons.

With the large increase in China's imports, there are signs that foreign sulfur producers control the domestic market. In recent years, they have changed their original low-price policy and drove up the price of sulfur. CIF prices soared to $120 to $130. At the same time, when sulphur high prices lead to an increase in demand for pyrite in the country, they immediately crack down on pyrite production companies by means of price reductions, in order to maintain the dependence of domestic acid-making enterprises on imported sulphur. This year, the prices of pyrite-reduced enterprises faced decline because the price of imported sulphur dropped from the highest level of 130 U.S. dollars to 80 U.S. dollars, and it may be further lowered.

The rapid increase in the import of sulphur quickly hit the downstream market of pyrite enterprises. The responsible person of Tongqiao Chemical Group Xinqiao Mining Co., Ltd., the second-largest producer of pyrite in the country, provided the reporter with such a figure: The proportion of pyrite-based sulphuric acid production in China was from 70% to 80% in the mid-1990s. It has dropped to the current 33%, while the proportion of sulphuric acid production has increased from less than 1% to 43%, almost half of the sulphuric acid production in China, and the market for pyrite sulphuric acid production has been severely reduced.

According to the National Bureau of Statistics, from January to May of this year, domestic production of pyrite was 4.383 million tons, which was basically the same as last year, and it was incomparable with the increase of nearly 10% last year. So far, the domestic average price of pyrite market is only 180 yuan per ton, a drop of about 50 yuan from the same period of last year. Only the price drop will reduce the main business benefit of domestic pyrite enterprises by hundreds of millions. It may lose several hundred million yuan.

Wang Jun, vice chairman and secretary-general of China National Association of Chemical Industry and Mining, told the reporter that a large amount of sulphur imports not only impacted the domestic market of pyrite enterprises, but also exposed China's sulfuric acid industry and the downstream fertilizer industry to huge market risks. Therefore, starting in 2002, the China Chemical Mining Association, China's Sulfuric Acid Industry Association and some of China's large-scale pyrite mining enterprises have repeatedly petitioned the relevant national authorities to require macro-control measures to control sulphur imports. However, at that time, this situation did not cause sufficient attention from the relevant government departments. The country also failed to issue relevant policies, which led to the uncontrolled import of sulphur in the following years and reached 8.3 million tons last year. Some experts predict that this year's imports will reach 10 million tons, accounting for 22% of global sulfur trade volume.

Wang Jun analyzed these kinds of situations. One is that the source of raw materials for sulfuric acid production in China is currently mainly dependent on imports, while the raw materials for pyrite-based acid production all come from domestic pyrite enterprises; one is the product of China's pyrite enterprise mainly used for sulfuric acid production, of which 70% of sulfuric acid For the production of phosphate fertilizers. Therefore, it can be concluded that many pyrite enterprises have played a role in supporting China's sulfuric acid industry, stabilizing imported sulphur prices, breaking the control of foreign countries on China's sulfuric acid industry, and supporting the development of China's phosphate fertilizer industry. In the past two years, although the price of imported sulphur has risen by several tens of volts, the market prices of sulphuric acid and phosphate fertilizers in China have been relatively stable. This, together with the difficulties encountered by China's pyrite enterprises, provides sufficient pyrite resources to the market to maintain the domestic sulphuric acid market. A certain share of pyrite acid production has a direct relationship. It can be said that if the share of pyrite sulphuric acid further shrinks, the pulverized iron ore enterprises will encounter difficulties, and production cuts, production suspensions, or even closures will inevitably increase the situation in which sulphuric acid raw materials mainly depend on imports and thus lose control of acid raw materials in China. . This will produce unpredictable problems for the production of sulfuric acid, which is an important chemical raw material, and the production and marketing of phosphate fertilizers and market prices.

Therefore, the China Chemical Mining Association reminds that the phenomenon of pyrite enterprises should pay attention to the early development of appropriate measures. At the same time, it also hopes that relevant state departments will pay attention to it.

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