Sulfuric Acid Production Faces Uncertainties     

1. In 2008, China's output of sulfuric acid decreased for the first time in the last 10 years    

A. China's output of sulfuric acid in 2008    

In 2008, the domestic sulfuric acid industry was influenced by the policy adjustment regarding compound phosphate fertilizers and impacted by the international financial crisis, and the national output and consumption of sulfuric acid were confronted with a decrease for the first time in the last 10 years.  
   Checking on the basis of the data (51.10 million tons) offered by the National Bureau of Statistics of China, China Sulfuric Acid Industry Association finally calculated that the national total output of sulfuric acid was 53.79 million tons in 2008, a year-on-year decrease of 5.6%. Within which, the output of sulfur-based sulfuric acid was 20.81 million tons with a year-on-year decrease of 20.7%, that of sulfuric acid made from smelter off-gas was 15.43 million tons with a year-on-year increase of 16.8%, that of pyrite-based sulfuric acid was 16.86 million tons with a year-on-year increase of 1.1%, and 690 000 tons of sulfuric acid was made from other raw materials.
   Influenced by sulfur price, the sulfuric acid output of the 18 provinces that have sulfur-based sulfuric acid production units, such as Yunnan, Guizhou, Hubei, Jiangsu and Zhejiang provinces, all dropped. The output of sulfuric acid made from sulfur together accounted for 38.7% of the total, compared with 46% in 2007. The startup of new non-ferrous metals smelting facilities enabled the output of sulfuric acid made from off-gas of smelters to increase considerably, with proportion improving from 23.2% in 2007 to 28.7% in 2008. The output of pyrite-based sulfuric acid increased slightly.

China's Top Three Provinces of Sulfuric Acid Output in 2007 and 2008
(million tons)

Total output
Year    2008         2007
Yunnan    8.11         Yunnan     8.82
Hubei    6.83         Hubei      6.74
Shandong    4.89     Shandong    5.25

Sulfur-based sulfuric acid
Yunnan    5.07         Yunnan     5.89
Hubei    3.63         Guizhou    4.01
Guizhou 2.82         Jiangsu    3.75

Sulfuric acid from metallurgical off-gas
Anhui    2.09         Hubei    2.46
Gansu    1.93         Sichuan    1.52
Yunnan    1.78         Guangdong    1.35

Pyrite-based sulfuric acid
Hubei    2.57         Yunnan    1.93
Guangdong    1.41     Gansu    1.68
Jiangsu     1.32     Anhui    1.53
Source: China Sulfuric Acid Industry Association


B. The distribution of China's sulfuric acid industry     

In 2008, there were 6 provinces whose output of sulfuric acid exceeded 3 million tons, namely, Yunnan, Hubei, Shandong, Jiangsu, Anhui and Guizhou, and their combined output accounted for 57% of national total output. Yunnan took the lead, with an output of 8.11 million tons. The output in Yunnan, Guizhou, Hubei and Sichuan provinces with abound phosphorus resource accounted for 38% of national total, with the output in eastern China accounting for 30%, southern China 17%, northern and northeastern China 8%, and northwestern China 7%.
   In 2008, there were 9 enterprises whose output exceeded 1.0 million tons, and their output together accounted for 30% of national total. The enterprise that boasted the largest output was Yunnan Yuntianhua International Chemical Co., Ltd. (Yuntianhua Intl), with an output of 3.98 million tons, and there were 11 enterprises whose output of sulfur-based sulfuric acid exceeded 400 000 tons, their combined output accounting for 61% of the total sulfur-based sulfuric acid output. There were 9 enterprises whose output of sulfuric acid made from off-gas of smelters exceeded 400 000 tons, their combined output accounting for 52% of the total output of sulfuric acid from metallurgical off-gas. There were 4 enterprises whose output of pyrite-based sulfuric acid exceeded 400 000 tons, their combined output accounting for 12% of its total output.

China's Top Ten Sulfuric Acid Manufacturers in 2007  
No.      Name of Manufacturer    Output in 2007/ (million tons)    Remark

1    Yuntianhua Intl    4.83
     sulfur-based
2    Jiangxi Copper    1.64
    1.18 million tons of sulfuric acid from off-gas of smelters and 460 000 tons of pyrite-based sulfuric acid
3    Tongling Nonferrous Metals Group    1.51
    sulfuric acid generated from off-gas of smelters
4    Hubei Yangfeng Group    1.46
    1.40 million tons of sulfur-based sulfuric acid
5    Hubei Yihua Chemical industry    1.44
    960 000 tons of sulfur-based sulfuric acid and 470 000 tons of pyrite-based sulfuric acid
6    Guizhou Kailin Group    1.34
    sulfur-based
7    Sinochem Fuling Chongqing Chemical Industry     1.28
    1.20 million tons of sulfur-based sulfuric acid
8    Two Lion (Zhangjiagang) Fine Chemicals    1.26  
     sulfur-based
9    Jinchuan Group    1.15  
    generated from off-gas of smelters
10    Wengfu Group    1.05
   880 000 tons of sulfur-based sulfuric acid
    Total    16.96
   accounting for 29.75% of national total output
Source: China Sulfuric Acid Industry Association

China's Top Three Sulfuric Acid Manufacturers in 2008/(million tons)

Total output
Yuntianhua Intl    3.98
Jiangxi Copper    2.16
Tongling Nonferrous Metals Group    2.05

Sulfur-based sulfuric acid  
Yuntianhua Intl    3.98
Guizhou Kailin Group    1.66
Two Lion Fine Chemicals    1.31

Sulfuric acid from metallurgical gas
Tongling Nonferrous Metals Group    2.05
Jiangxi Copper    1.65
Jinchuan Group    1.26

Pyrite-based sulfuric acid
Tongling Chemical Industry Group     7.8
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