Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

market summary
Mexico buys three vessels for final quarter as
Brazil and US bid for spot tonnes
Fertinal in Mexico is believed to have purchased three vessels all for fourth quarter requirements. Prices are heard in
the low $70s/t cfr Lzaro Crdenas although unconfirmed.
One of the vessels will be loaded in Onsan, South Korea, in
October while origins of the other two vessels are unclear.
The buyer is not fully covered for 2014 yet and will require
additional acid, though Fertinal is expected to wait to
cover.

price guide
Sulphuric acid spot prices
24-Jul

+/-

10 20

10 20

0 q

0 10

0 10

0 q

37

37

0 q

25* 35*

25* 35*

0 q

NW Europe export
Mediterranean
South Korea/Japan
China
Spot prices - cfr

A US buyer is also expected to make a purchase imminently

for prompt tonnes. With previous business concluded in the
$55-65/t cfr range, the buyers bid is expected to be within
the prevailing price range.

Outlook: Firm.

31-Jul
Spot prices - fob

In Brazil, Petrobras is back in the market looking for offers

of 15,000t for early September arrival. The buyer will face
very high price offers from suppliers for such prompt requirement. Petrobras is expected to become a regular spot
buyer going forward as its new ammonium sulphate plant in
the city of Laranjeiras, Sergipe, with a normal production
capacity of 303,000 t/yr enters production this year.

The Asian market is comparatively slower. There were

strong indications LS Nikko sold some combo vessel tonnage
to be loaded on to the CS Onsan in October potentially
for Chile to a trader. It is unclear what price was agreed,
but with recent business still falling between $60-70/t cfr
Mejillones and the Chilean market balanced-to-long, the cfr
price is unlikely to have surged above this range.

$/t

Chile

60 70

60 70

0 q

Brazil

60 65

60 65

0 q

North Africa

40 45

40 45

0 q

US vessel import

55 65

55 65

0 q

India

38 43

38 43

0 q

* Indicative price/No recent business

Sulphuric acid contract prices - cfr

Chile

$/t

2014

6069

2013

90100

NW Europe
(smelter)

/t

H2-14

5070

H1-14

4565

NW Europe
(smelter)

/t

Q3-14

5070

Q2-14

5070

China

$/t

Q3-14

2025

Q2-14

2025

Sulphur, sulphuric acid, DAP price comparison

$/t

750

Highlights this week:

n Fertinal in Mexico bought three vessels for fourth
quarter delivery, understood to be in the low $70s/t cfr
Lzaro Crdenas.

500

--

250

n Petrobras in Brazil has invited offers of 15,000t for early

September arrival.
n There are strong indications that LS Nikko has sold some
sulphuric acid, to be delivered on the CS Onsan for October
loading, on a spot basis.

Copyright 2014 Argus Media Ltd

0
30 Jun 11

03 Nov 11

15 Mar 12

19 Jul 12

Sulphuric Acid fob Brazil

Sulphur cfr Tampa

22 Nov 12

04 Apr 13

DAP fob Tampa

Sulphur fob AG

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

n Several buyers in India continue their discussions with

suppliers for spot smelter acid tonnes, on the back of higher
sulphur prices at $190-195/t cfr India.

fuNdameNtaLs
supply - metals and ores
n RTB Bors new smelter continues to be plagued by
financial problems and commercial operation is expected to
be delayed to the second quarter next year at best.
n The future of the Gela refinery in Italy remains unclear
as crisis talks are ongoing after a 30,000 strong strike across
the companys Italian sites took place on 29 July.
n Freeport-McMoRan has announced a smelter expansion
project at its Miami, Arizona, operations. Upon completion,
the copper concentrate throughput for the smelter will increase by 30pc to a capacity of 900,000 t/yr. The expanded
smelter acid production from the current capacity of around
700,000 t/yr to around 900,000 t/yr is expected to be used
internally at the companys Safford, Arizona, copper leach
facility.

supply - sulphur
n Healthy sulphur demand and tight supply coupled with a
firm phosphates market continue to support sulphur prices.
n Qatars Tasweeq posted a new monthly price for August
liftings at $169/t fob, much in line with Aramcos earlier
price declared at $170/t fob for August liftings. This suggests
spot freight $/t
31-Jul

24-Jul

+/- ($)

US Gulf

35 40

35 40

North Africa

16 20

16 20

Brazil

40 45

40 45

Chile

55 60

55 60

US Gulf

38 42

38 42

North Africa

15 18

15 18

Nw europe

mediterranean

south korea/Japan
East coast India

28 32

28 32

China

19 22

19 22

Chile

65 75

65 75

US Gulf

75 80

75 80

Copyright 2014 Argus Media Ltd

that buyers looking to secure August spot volumes will face

prices around $190s/t cfr.
n Resourceful Chinese end-users continue to pick up
cheaper supplies from port stocks, as prices seen elsewhere
(in the $190s/t cfr) have yet to be established in China.
Those with Middle East tonnes to offer have been able to
place tonnes in other markets rather than accept loss-making prices in China.

demand - Leaching and industrial

n Copper: The overall trend shows a steady erosion in
prices on the previous week and average prices for the week
are around $7,134/t, down by $61/t. The medium- to longterm fundamentals for copper remain strong, predominantly
driven by robust demand from the emerging economies,
ageing mines and declining grades across the industry.
n Zinc: Prices peaked earlier this week at $2,420/t but
settled back down to the $2,300/t range later. The average
price for zinc on the LME this week was $2,392/t gaining
around $47/t on the previous weeks average price.
n Nickel: Cash prices for nickel continued to fall in the
last week. The weeks average price was $18,849/t, losing
around $480/t on last weeks reported price average. While
there are still considerable stocks of nickel on the LME, the
expectation is that stocks will reduce as the Indonesian
nickel ore export ban negatively impacts both nickel pig iron
production in China and overall nickel supply volumes.
n The IMF is ratcheting downward its projections for
global economic growth this year to 3.4pc, down from the
3.7pc projected in April because geopolitical risks - namely
in the Middle East and Ukraine - have risen relative to April.

demand - fertilizers and agriculture

n The phosphate fertilizer market is stable-to-firm with
the anomaly being Brazil, where offer prices appear to have
come off slightly driven by declining grain prices.
n Eid festival celebrations have limited trade in the east.
One Indian buyer has secured 35,000t of DAP from Fertisul
and there is a general acceptance that levels around $480/t
cfr is where the market has settled, up around $10/t on last
week.
n In China, damages by typhoon Rammasun are still being
assessed. No severe subsequent loading delays have been
reported but at least 110,000t of DAP port stocks have been
damaged. Chinese DAP offers are therefore firm at the
$450-460/t fob level on tight supply.

Page 2 of 11

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Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

South america

The following vessels were loaded in July for shipment to

Brazil:

Brazil
Petrobras in the market looking for September arrival
Petrobras is in the market inquiring for around 15,000t
of sulphuric acid for early September arrival in Barra Dos
Coqueiros, suggesting prompt loading. The buyer recently
received the MTM Houston, which loaded 15,000t of acid in
Rotterdam in the first half of July.
There are expectations for a fertilizer producer to enter the
spot market imminently for a cargo, possibly for October
arrival.
Fertilizer producers in Brazil report that demand has been
slow in recent weeks because of falling grain prices. Sellers
are expecting comfortable order books for the fourth quarter however, which will support sulphuric acid demand.

n 15,000t loaded on the MTM Houston in Rotterdam, the

Netherlands, in the first half of July for Barra dos Coqueiros
n 15,000t loaded on the Wawasan Topaz in Poland by
Interacid in the first half of July for Rio Grande
n 12,000t loaded in Aviles, Spain, in the first half of July
for Aratu

Mexico
Three shipments fixed for 4Q arrival in Lzaro Crdenas
There are strong indications that new cargoes have been
fixed for fourth quarter delivery to Lzaro Crdenas.
Market sources say that up to three cargoes have been
finalised, reportedly concluded in the low $70s/t cfr. One
of them is heard to be loading in Onsan, South Korea, for
November arrival.

In the freight market, two August loaders have been fixed:

Buenavista project progressing well
Southern Copper Corporations new SX/EW III plant at its
Buenavista, Sonora, facility produced first copper cathode
this June, and full capacity is expected to be reached by
the end of the third quarter. Other components under the

n 19,000t loading in Hamburg, Germany, in August

n 19,000t loading in Huelva, Spain, in mid-August

Sulphuric acid this week

North Europe Some spot tonnes for fourth-quarter

loading are under discussions with no conclusions yet.

Mexico Fertinal has

bought three cargoes
to cover its fourth
quarter needs.
Serbia RTB Bors
new copper smelter
is delayed again on
financial struggles.
India Spot buyers are looking
for tonnage but
no deals have
been struck yet.

Brazil Petrobras is
asking for 15,000t of
acid for early September arrival in Barra Dos
Coqueiros. Two vessels,
19,000t each, were
fixed for August loading
in Europe for Brazil.

Copyright 2014 Argus Media Ltd

Page 3 of 11

South Korea CS
Onsans fourthquarter voyage
is reportedly
fixed under a
spot sale for October loading.

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

Global sulphuric acid shutdowns/curtailments

Shutdown/Curtailment
Length days

Estimated
monthly
production t

November-December
2014

25

120,000

Japan - Tamano

October-November 2014

48

58,000

Planned

Peru - Ilo

October 2014

28-30

79,000

Planned

Anglo American

Chile - Chagres

October 2014

15

40,000

Planned

Kennecott

Rocky Mountain Garfield, Utah

September 2014

65

80,000

Planned

Enami

Chile - Paipote

June 2014

26

24,000

Planned

Nyrstar

Australia - Hobart

May

14

33,000

Planned

Incitec Pivot

Australia - Phosphate Hill

May/June 2014

35

Est 58,000

Planned

LS Nikko

South Korea - Onsan, No. 1

June 2014

15

50,000-60,000

Tessenderlo

Belgium - Ham

May

21

30,000

Planned

Vale

Canada - Sudbury, Ontario

7 May 2014

21

83,000

Planned

Sterlite

India - Tuticorin

26 April 2014

22 90,000-100,000

Planned

Codelco

Chile - El Teniente

April 2014

25

83,000

Planned

Codelco

Chile - Ventanas

March 2014

25

30,000

Planned

Codelco

Chile - Chuquicamata

March 2014

25

45,000-50,000

Planned

Hibi Kyodo Smelting

Japan - Tamano

25 March - 7 April 2014

14

58,000

Planned

Vale Japan

Japan - Matsuzaka

12 March - 23 April 2014

43

3,500

Planned

Pan Pacific Copper

Japan - Hachinohe

3 March - 10 April 2014

39

12,500

Planned

Toho Zinc

Japan - Chigirishima

2-22 March 2014

21

3,000

Planned

GlencoreXstrata

Chile - Altonorte

January 2014

10

83,000

Planned

Noracid

Chile - Mejillones

Early January 2014

21

50,000-60,000

Company

Location

Pan Pacific Copper

Japan - Saganoseki

Hibi Kyodo Smelting

Southern Copper
Corporation

Start date

PT Smelting

Indonedia - Gresik

2H January 2014

GlencoreXstrata

Philippines - PASAR

8 November 2013

Buenavista project are also nearing completion, according

to the companys latest financial results report (read more
under Company & Related News).
The plant will produce an additional 120,000t of copper and
consume about 5pc of Grupo Mexicos annual sulphuric acid
production - around 50,000 t/yr.

Chile
Workers at Collahuasi, a joint venture between Anglo American and Glencore, held a 24-hour strike on 26 July following
the recent death of a worker from meningitis. Operations
at Collahuasi were not disrupted by strike action, according to the company. The company has been administering
preventative doses of anti-bacterial drugs to all workers and
contractors to control any further cases.

Copyright 2014 Argus Media Ltd

18

80,000

~125

50,000

Comments
Planned. Around 100,000t
expected to be lost

Postponed by 2 weeks and

began on 5 June.

Planned
Planned. Restarted in mid
February 2014
Unplanned. Restarted in
mid March 2014

Peru
Tia Maria awaiting final environmental approval
Tia Maria now awaits a final approval of an Environmental Impact Assessment during the third quarter, according
to the latest financial results report by Southern Copper
Corporation. Sources close to the company say a result is
expected in the coming month. The project will produce
120,000t of copper cathodes and consume 720,000 t/yr of
sulphuric acid when operations are commenced in 2016.

North America
US
One buyer in the market is looking for prompt tonnage with
just one supplier actively offering volume. Price ideas on
the buy side are in the prevailing price range of $55-65/t cfr

Page 4 of 11

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

Spot sales selection 31 July 2014

Product

Origin

Seller

Buyer

Destination

000t

$/t

Shipment

Sulphuric acid

Various

Traders

Fertinal

Mexico

3 x 20

L 70s cfr

4Q

South Korea

Korea Zinc

Vietnam

45 cfr

Aug

Peru/Chile

Codelco

Chile

30

60 cfr

Aug-Oct

Codelco

Chile

20

60 cfr

Jun/Jul

Poland

Trader

Yara

Brazil

17

M/H 50s cfr

Jun/Jul

Peru/Offshore

Codelco

Chile

35

65 cfr

May/Jun

Trader

Anglo American

Chile

10

H60s-L70s cfr

May-Aug

Philippines

GlencoreXstrata

PPL

India

20

35 cfr

May

Japan

Quantum

CIL

India

18

39-43 cfr

May

Europe

Trader

End-user

US

20

L 50s cfr

May

South Korea

LS Nikko

Trader

Chile

25

L 70s cfr

July

Europe

Aurubis

Yara

Brazil

18

50-55 cfr

June

Europe

Aurubis

Yara

Brazil

18

50-55 cfr

May

Europe

Mosaic

Brazil

2x12

48-50 cfr

Apr/May

while the sell side continues to push for prices in the high
$60s/t cfr.
IMF cut its projection for US GDP growth substantially in an
update to its World Economic Outlook: Down to 1.7pc for
2014 from the 2.8pc expected back in April.

Africa & Mediterranean

Italy
Crisis talks follow Eni labour strike; refining division
made a loss of 165mn in 2Q
Eni agreed at press time to reopen the Gela refinery,
according to union Uiltec-Uil, which was involved in crisis
talks with the company. But Eni did not elaborate as to
what form the Gela site would take in the future.
Talks between Eni, union leaders and Minister of Economic
Development Federica Guidi lasted two days, following a
30,000 strong strike across the companys Italian sites on
29 July. Over 90pc of Eni workers took part in the one-day
strike, as protest against Enis plan to close several of its six
refineries for economic reasons.
Gela is one of the refineries threatened with permanent
closure after 700mn of promised funding to redevelop the
refinery was revoked by Eni, saying the decision is essential
to tackle the companys financial losses. Gela has faced
demonstrations since early July when the plant was not

Copyright 2014 Argus Media Ltd

India: sulphuric acid discharge/arrivals in Jun-Jul 2014

Supplier/
Buyer

Vessel

t Load port Discharge

port

Discharge/
arrival

CIL/Sterlite Nolowati

5,500

Tuticorin

Vizag

1-Jun

CIL/Sterlite Nolowati

6,977

Tuticorin

kakinada

6-Jun

IFFCO/Korea Fairchem
Zinc
Steed

19,700

Onsan Paradeep

7-Jun

CIL/Sterlite Arc Pioneer

7,003

Tuticorin

kakinada

21-Jun

CIL/Hindalco Laurel
Galaxy

7,500

Dahej

kakinada

22-Jun

CIL/Quantum Wawasan
Jade

12,051

Japan

Vizag

24-Jun

CIL/Quantum Wawasan
Jade

7,000

Japan

kakinada

27-Jun

IFFCO/
Trammo

AS Ophelia

10,430

Japan Paradeep

1-Jul

PPL/Korea
Zinc

ChemRout
Oasis

19,949

Onsan Paradeep

2-Jul

Hindalco/
Philippines

Success
Marlina

15,025

Dahej

Taganito

9-Jul

PPL/Korea
Zinc

MTM Gibral- 10,000

tor

Onsan Paradeep

19-Jul

CIL/Korea
Zinc

MTM Gibraltor

8,400

Onsan

Vizag

21-Jul

FACT/SterliteYong Tong 1

9,621

Tuticorin

Cochin

19-Jul

White Shark 18,000

Japan

Vizag/
Kakinada

05-Aug

CIL/TBC

Page 5 of 11

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

re-opened after maintenance, causing workers to stage sitdown strikes to prevent ships loading stored product.

Boliden expects comfortable stocks in 3Q on planned

shutdowns

On 31 July, Eni reported that its refining and marketing

division made a loss of 165mn in the second quarter, wider
by 26mn from the same period last year. Eni is expected to
present an updated four-year strategy within this week that
is likely to include details on the prospects for its refining
business.

Maintenance shutdowns will be carried out at Rnnskr,

Odda and Bergse during the third quarter, according to Bolidens second quarter interim report. The estimated impact
on the operating profit is approximately SEK80mn.

If Gela shuts down permanently, the market will face a loss

of acid production - 145,000t produced in 2013 - and this
will likely be felt by buyers in Morocco, Turkey, Egypt and
other Mediterranean countries.

In related news, the IMF looks for the euro area to grow
1.1pc this year according to an update to its World Economic
Outlook.

Serbia
Construction of new Bor smelter unfinished, commercial
production date pushed back

Europe
Northwest Europe
Some spot tonnes for fourth quarter loading have been
under discussions but no conclusions are heard yet. Seller
price ideas fall in the range of $20-30/t fob based on latest
sales into Brazil and a recent spot offer into the US. Market
players, however, expressed concerns that demand in the
later part of the year from nearby markets may not be as
robust as some have hoped for.

RTB Bors new smelter continues to be plagued by financial

problems and construction of the project is still ongoing.
This means that commercial operation of the new copper
smelter last expected to be August-October 2014 just four
months ago- will be pushed back again. It is understood that
in early July the Serbian government gave Bor the green
light to more funding, leading to market expectations for
commercial operation to essentially begin in the second
quarter of 2015.

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Thursday 11 September 2014

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Page 6 of 11

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

The new smelter is designed to produce around 300,000 t/

yr of sulphuric acid. Fertilizer producer Elixir in Serbia, currently consuming around 200,000-250,000 t/yr of acid from
various sources, is expected to take majority of the new
RTB Bor acid production as they plan to raise their fertilizer
output.

points that have either been recently built or are under

construction at present.
Chinas economy is expected to grow 7.4pc this year, but
housing investment there has slowed, according to an update to IMFs World Economic Outlook.

RTB Bor currently runs a copper smelter and is expected

to produce100,000-120,000t of acid this year. Some of the
production is for captive use and majority sold on to local
consumers.

South Korea
CS Onsans fourth quarter voyage fixed?
There are strong indications that LS Nikko has sold some
sulphuric acid, to be delivered on the CS Onsan for October
loading potentially for Chile, on a spot basis. While the cfr
price and the buyer were not confirmed at press time, the
last reported deals in Chile fell in the range of $60-70/t cfr
Mejillones. There is market speculation that the purchase is
to cover short selling.

Asia
China
China continues to grow its phosphate and compound
fertilizer capacity and to accommodate this, many more
sulphur-based sulphuric acid plants have been designed or
built by local fertilizer producers for captive use.

This year, South Korean smelters have been focusing more

on nearby markets while pushing away from Chile as freight
rates to the import market remain above achievable prices.

The map below highlights nine sulphuric acid production

New sulphuric acid plants in China

RUSSIA

Already built:
1. Qingping Phosphate Mine: 300,000 t/yr
KAZ AKH S TAN
sulphur-based plant in Deyang, Sichuan

Heilongjiang
Daqing

2. Shikefeng Sichuan Leibo: 220,000 t/yr

sulphur-based plant in Leibo, Sichuan

Harbin
M O N G O LI A
Jilin

3. Hubei Tianyi Chemical:

300,000 t/yr
Urumuqi
KY R G Y Z S TA
N
sulphur-based
plant in Xiangyang, Hubei

Tieling

Dandong

4. Hubei Fengli Chemical: 300,000 t/yr

Xinjiang
sulphur-based
plant in Xiangyang, Hubei

Yellow
ri

ver

Inner Mongol

C H I N A

SOUTH
KO R E A
Qingdao

un
er

riv

Tsangp
o river
8. Kailin: 800,000 t/yr
sulphuric
acid plant
in Kaiyang, Guizhou

4
9 Hubei

Sichuan

5
2

9. Hubei Longmang Phosphate Chemical:

INDIA
2 x 400,000 t/yr pyrite-based acid plant in
Nanzhang, HubeiB A N G L A D E S H

Hunan

Zhuhai
V I E T N AM

M YAN M AR

LAO S

Page 7 of 11
T H AI LAN D

Ningbo
Zhejiang

Fujian
Quanzhou
Quanzhou
Xiamen
Xiamen

Guangzhou

Liuzhou

Yunnan

Zhanjing

Hainan

Shanghai

Jiangxi

Guizhou

Nanjing

Anhui

Ya
n

ek

Henan

ive

er

Shannxi

gtz

Lanzhou

7. Guizhou Batian: 600,000 t/yr sulphurbased plant in Wengan, Guizhou

Copyright 2014 Argus Media Ltd

Dalian

Shanflong

Tibet

Yanlon
g

NORTH
KO R E A

Shijiazhuang

Under construction:
Qinghai
6. Guizhou Kingenta: 400,000 t/yr sulphurbased plant in Wengan, Guizhou

N E PAL

Tianjin

Beijing

Gansu

5. Yidu Xingfa Chemical: 800,000 t/yr

sulphur-based plant in Yidu, Hubei

Fushun

TAI WAN
Hong Kong

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

South Korea delivered just 100,688t of acid to Chile in the

first half of the year, according to the Korea Customs and
Trade Development Institution. The total is a significant
drop of 57pc compared with the first half of 2013. Some of
the tonnes delivered during the first six months of this year
are thought to be carried over from 2013.
While discussions with Chilean buyers for 2015 deliveries
have yet to begin, if prices were to stay in line with the
2014 level of $60-69/t cfr Mejillones, South Korean smelters
are likely to concentrate on the Asian markets as they did
this year, restricting its deliveries to combo vessel and any
carry over tonnes.
Less reliance on Chile by Korean smelters will create further
competition in Asia, particularly on the back of production expansion at Pasar in the Philippines. Expansion work
is expected to take place in 2015. Following that the Pasar
smelter will raise its nameplate sulphuric acid production
capacity to 1.1mn t/yr. Argus FMB understands that Pasars
normal acid production is at around 600,000 t/yr.

India
Both Coromandel and IFFCO are heard to be in the market
looking for spot tonnes. Coromandel has yet to agree with
any supplier its requirements for the last quarter of 2014.
One buyer is also heard to be looking for spot tonnes for
delivery to Buj Buj.

Indonesia
FCX is set to resume copper concentrate exports
PT Freeport Indonesia (PT-FI), the Indonesian subsidiary
of Freeport-McMoRan (FCX), received approval from the
Indonesian government on 25 July to resume exports of
copper concentrates. PT-FI is to resume full operations
at the curtailed Grasberg operation immediately and
concentrate exports are expected to commence in August
2014.
Since early this year, when the Indonesian government
applied regulations to ban exports of metal ores and raise
the export tax on mineral concentrates, concentrate
inventory in Indonesia has been building.
PT-FI has now entered into a Memorandum of Understanding
(MoU) with the government - though yet to be signed under which both parties have agreed to negotiate an
amended Contract of Work (CoW) to address provisions
related to various issues including the continuation of
operations post-2021. The existing CoW had a provision for
two 10-year extensions to operations at Grasberg, a mine
that is expected to raise copper production from 2016.

Copyright 2014 Argus Media Ltd

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market.
If you are interested in joining a dynamic and fast-growing
publishing company then please send a covering letter
and your CV to Gemma Crozier, HR Manager at: gemma.
crozier@argusmedia.com. Or call 44 207 780 4344.
Deadline for application: Monday 1 September 2014.
PT Smelting - receiving feed from the Grasberg mine
- has been running at half capacity before the above
announcement was made, according to FCX at its second
quarter earnings conference call.
Some of the by-production smelter acid coming from PT
Smelting goes to fertilizer producer PT Gresik. The fertilizer
producer has been sourcing more sulphuric acid from the
Pasar smelter in the Philippines in recent months.

Page 8 of 11

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

Company & Related News

Southern Copper Corporation 2Q results

smelter development initially at 7.5pc, declining to 5pc and

then zero percent when development progress exceeds
30pc.

Southern Copper Corporation reports net sales for the second quarter at $1.49bn, a 9.8pc climb on the previous quarter because of higher sales volume of copper (7.1pc growth),
molybdenum and silver. EBITA during the same quarter
grew 5.7pc to $707.6mn on first quarter, though the margin
decreased from 49.4pc to 47.6pc as a result of higher cost
including that for fuel.

FCXs Indonesian subsidiary PT-FI received approval from

the government of Indonesia to resume exports of copper
concentrates commencing in August 2014 (read more on
page 8). Newmont Mining, which operates the Batu Hijau
mine, is also awaiting a decision on a pending MoU that will
allow for the resumption of production.

In terms of copper production, Southern Copper saw a 1.3pc

growth in production to 2,183t in the second quarter. This
is attributed to initial production from the new Buenavista
(Mexico) SXEW III plant which started commercial production in the second quarter, higher production at La Caridad
(Mexico) mine because of higher recoveries and at the
Toquepala (Peru) mine as a result of higher ore grades and
recoveries.

Olympic Dam back on BHPs agenda, Australia

BHP Billiton plans to build a pilot scheme to test the larger
scale feasibility of the heap leaching process at its Olympic
Dam site in Australia, after many months of investigating a
less capital-intensive design of the Olympic Dam open-pit
expansion.

While Joko is unlikely to reverse on the mining policy, his

presidency may bring a more consistent approach to policy
making and a more collaborative attitude to the natural
resource sector.
The export ban originally stemmed from Indonesian nickel
ore exports, where significant revenue was realised downstream in countries such as China and Japan. In 2013, Indonesia produced around 440,000t of nickel ore.

import and export data - Europe

Poland: sulphuric acid exports
Country
US

BHP now awaits approval from the federal and south Australian governments to construct the demonstration plant,
which is slated to commence in the second half of 2015,
with a projected trial period of 36 months.
A series of staged development options that would make
Olympic Dam a leading producer of copper and uranium
were shelved in 2012 when the company cut capital expenditure on the back of weakened commodity prices.
Heap-leaching of ores could remove the need to duplicate
costly smelting and refining operations at Olympic Dam,
which produced 2,495t of copper ore and 51,000t of copper
cathode for the last quarter.

Apr 14 % in Apr

T
Jan-Apr
14

Jan-Apr
13

Change

16,865

56%

33,521

15,908

111%

Germany

7,829

26%

25,672

23,994

7%

Czech
Republic

3,588

12%

13,709

12,562

9%

Slovakia

1,305

4%

6,770

6,450

5%

401

1%

4,222

5,150

-18%

Hungary

1,656

835

98%

Morocco

10,010

-100%

UK

4,689

-100%

Others

277

817

2,026

-59%

World

30,265

100%

86,368

81,622

6%

Austria

Source: Eurostat, copyright GTIS, 2014

Can new Indonesian president resolve mining

row?
The election of reformist Joko Widodo as Indonesias new
president may offer further hope of reconciliation with the
Indonesian government and the international mining industry over the increasingly nationalistic resource policies,
which have gradually been introduced since 2009.
On 25 July this year, the government revised its January
2014 regulations regarding export duties to incorporate
reduced rates for copper concentrate exports for companies
engaged in smelter development. The revised regulations
provide for duties on copper concentrate exports during

Copyright 2014 Argus Media Ltd

n Polish exports for April increased to 30,265t from the

previous month. The US was the largest export market for
Poland, with around 55pc of total acid exports for April.
Year to date volumes for US-bound cargos was more than
double for the first four months of 2014 compared to 2013.
n The other two countries that imported significant
volumes of sulphuric acid from Poland were Germany
and the Czech Republic, both of which increased import
volumes by around 51pc and 9pc respectively.

Page 9 of 11

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

Belgium: sulphuric acid exports

Country

Apr 14 % in Apr

T
Jan-Apr
14

Jan-Apr
13

Change

Netherlands

9,954

29%

48230

61214

-21%

France

8,909

26%

33658

40368

-17%

12,371

36%

31447

25050

26%

19422

1,326

4%

4663

5105

-9%

654

2%

1519

788

93%

Morocco

31059

-100%

US

34961

-100%

Ireland

954

-100%

Ghana

199

1%

470

388

21%

Others

613

1.8%

3,502

3,912

-10%

World

34,021

100%

142,909

203,795

-30%

Germany
Brazil
UK
Mali

Source: Eurostat, copyright GTIS, 2014

n Year-to-date exports of Belgian acid continue to fall,

with January to April statistics indicating that around 30pc
less acid was taken by importing countries such as Morocco
and the US. Morocco last imported Belgian sulphuric acid in
November 2013.
Germany: sulphuric acid exports
% in
Jan-May
Country
May 14
May
14
Brazil
US

22,004

T
Jan-May
13

Change

18%

91,060

273

87,227

44,832

95%

Cuba

24,000

20%

82,516

54,524

51%

Belgium

13,313

11%

65,404

43,228

51%

France

17,468

14%

63,992

54,918

17%

Netherlands

5,060

4%

40,609

51,314

-20%

10,976

9%

39,255

35,933

9%

5,899

5%

26,385

34,333

-23%

Namibia

24,000

22,000

9%

Norway

11,818

10%

20,381

41,156

-50%

Austria

3,958

3%

18,878

18,619

1%

Denmark

1,202

1%

7,523

8,514

-12%

Uruguay

5,104

21,001

-76%

Portugal

4,211

3%

4,223

5,266

- 20%

918

1%

3,967

3,824

4%

Finland

84

190

56,683

-99%

Chile

21

126

22,130

-99%

Others

1,600

1%

9,164

20,095

World

122,539

100%

589,999

538,640

Spain
UK

Switzerland

Source: Eurostat, copyright GTIS, 2014

Copyright 2014 Argus Media Ltd

n Germanys exports of sulphuric acid continue to

strengthen year on year with total exports up by 10pc on
the first five months of 2013. Shipments to Brazil, Cuba
and France dominated German exports of acid for May.
However, the US, which received over 46,000t in March,
only imported around 8,000t in May. Total exports of
sulphuric acid peaked at 171,648t in March.
n Year on year changes in exports from Germany indicate
that the Netherlands, Norway and the United Kingdom all
imported lower volumes of sulphuric acid.
Netherlands: sulphuric acid exports
Country
Apr 14 % in Apr Jan-Apr
14
Cuba

T
Jan-Apr
13

Change

23,498

65%

34,114

43,714

-21.96

Belgium

9,563

26%

30,150

18,481

63%

Germany

2,367

7%

17,686

19,807

-11%

UK

4,806

Cote dvoire
Dominican
Republic
France

1,083

25

4302%

157

51

158

3,597

-96%

Others

652

2%

3,369

6,287

-46%

World

36,286

100%

91,363

91,916

1%

Source: Eurostat, copyright GTIS, 2014

n Sulphuric acid exports from the Netherlands bounced

back in April by 40pc on the previous month. Cuba
imported 23,498t of Dutch acid in April. Overall year-todate exports of sulphuric acid from the Netherlands were
stable for January to April 2014 compared to the same
period in 2013, showing a 1pc increase.
Bulgaria: sulphuric acid exports
Country

Apr 14 % in Apr

T
Jan-Apr
14

Jan-Apr
13

Change

Turkey

40,819

59%

180,052

177,346

2%

Morocco

19,100

28%

53,744

37,891

42%

Romania

1,267

2%

11,268

14,416

-22%

Greece

1,687

2%

6,269

5,438

15%

Macedonia

1,654

2%

4,687

4,795

-2%

Serbia

3,756

5%

4,613

351

1214%

Cuba

10,501

-44%

Namibia

18,996

-100%

France

19

73

7,005

-99%

Others

325

1%

1,051

3,578

-70%

World

68,627

100%

261,684

280,318

-7%

Source: Eurostat, copyright GTIS, 2014

10%

n Turkey remains Bulgarias main export market for

volumes of sulphuric acid. On a year-on-year basis Turkish

Page 10 of 11

Argus FMB Sulphuric Acid

Issue 14-31 | Thursday 31 July 2014

Sweden: sulphuric acid exports

Country

Apr 14 % in Apr

T
Jan-Apr
14

Jan-Apr
13

Change

Norway

15,332

25%

46,595

15,069

209%

US

18,000

30%

32,430

18,000

80%

Finland

4,563

8%

23,150

59,706

- 61%

UK

2,877

5%

18,333

15,309

6,253

10%

11,510

11,532

- 0.19

10,500

17%

10,500

3,133

5%

10,217

6,239

63.76

France

3,207

Spain

2,500

Others

4,024

-100%

World

60,658

100%

173,759

114,569

52%

Morocco
Germany
Cuba
Denmark

Argus FMB Sulphuric Acid Methodology

Argus uses a precise and
transparent methodology to
assess prices in all the markets
it covers. The latest version of
the FMB Sulphuric Acid
Methodology can be found at:
www.argusmedia.com/methodology.
For a hard copy, please email info@
argusmedia.com, but please note
that methodologies are updated
frequently and for the latest version, you should visit the internet
site.

MethodoLogy and specifications gUide

imports of Bulgarian acid have shown a 2pc growth

on January to April 2013. The other significant export
destination is Morocco, which accounted for 28pc of April
shipments of Bulgarian acid. Morocco has consistently taken
larger volumes this year to date compared to the equivalent
period in 2013. Serbia also boosted export volumes as
3,756t of acid were imported in April.

argUs fMB sULphUric acid

Contents:
Introduction
General methodology
Ethics and compliance
Price assessments
Sulphuric acid
Spot prices
Contract prices
Freight rates
Publishing schedule
Corrections to assessments

2
2
2
2
3
3
3
4
4
4

Last Updated: apriL 2014

The most up-to-date Argus FMB Sulphuric Acid methodology is available on www.argusmedia.com

www.argusmedia.com

n Swedish exports of sulphuric acid have proved to be

robust for the first four months of 2014, showing a 52pc
increase on the previous years January to April volumes.
Norway and the US accounted for over 50pc of Swedish April
exports, with an additional 10,500t imported by Cuba.
n Morocco, Spain and France all received volumes of
Swedish acid this year, which accounted for around an
additional 21,016t of exports.

Source: Eurostat, copyright GTIS, 2014

Argus FMB Sulphuric Acid is published by Argus Media Ltd.

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