Sulphuric acid pricing split as bears migrate to southeast Asia

LONDON (ICIS)--A gulf has opened between European and Asian sulphuric acid prices as bearish sentiment settles in southeast Asia. Just two weeks after Q1 acid supply contracts settled in Europe at an increase, a trader was heard this week finalising a half-year supply contract with its regular buyers at an €8/tonne hike from H2 2018. The agreement is understood to be in the low-€70s/tonne CFR (cost and freight) for H1 2019. A trader also made mention of other half-year contracts “in the high €70s/tonne CFR”. European sulphur burners are said to be running at near-full capacity, thanks to lower-priced sulphur feedstock, and in the spot market there is talk of northwest Europe offers above $90/tonne FOB (free on board), and bids in the $80s/tonne.