Pan Pacific Copper to Raise Sulfuric Acid by 3,000 yen/t

Pan Pacific Copper increases the selling price of sulfuric acid by 3,000 yen per tonne for domestic buyers for October shipment. The firm announced 1,000 yen hike for April shipment but the firm couldn’t get all of the increase. The firm tries to realize the additional hike under tight supply with strong demand and lower domestic production.

International price of sulfuric acid reached US$ 170 per tonne compared with recent bottom of US$ 30 after Lehman shock. The price increases under strong demand for fertilizer and hydro metallurgy worldwide. Metal industry increases hydro metallurgy in copper with solvent extraction electrowinning process and nickel with high pressure acid leach process.

Oil and gas industry represents 70% of world sulfuric acid supply while Japanese supply is mainly from copper and zinc smelting. Smelter makes around 3 tonnes of sulfuric acid per one tonne of electrolytic copper production. Japanese sulfuric acid production is around 6.7 million tonnes, of which smelting process represents around 80%. However, the production will decrease due to the major earthquake damage on smelters.