JPN Nonferrous Metal Smelters Raise Sulfuric Acid Price

Japanese nonferrous metal smelters succeed in price hike for sulfuric acid, a by-product from nonferrous metal smelting. Acids Co., Ltd., a joint venture for sulfuric acid business between Sumitomo Metal Mining and DOWA Holdings, raised the selling price by 3,000 yen per tonne effective for July shipment to domestic consumers. Pan Pacific Copper Co., Ltd. (PPC), a copper smelting JV between Nippon Mining & Metals and Mitsui Mining & Smelting, and Furukawa Metals & Resources Co., Ltd. also raised the selling price.Domestic smelters have offered price hike 4 times since 2004. PPC succeeded to raise the selling price by 2,000 yen per tonne while Acids and Furukawa Metals & Resources by 3,000 yen per tonne.Sulfuric acid supply is tightening globally and the international price is surging with the demand increase from fertilizers. The demand is also increasing from nonferrous metal smelting.Solvent extraction and electro winning (SX/EW) processing method uses diluted sulfuric acid to leach out copper content from copper ore. About 20% of global copper is produced by means of SX/EW processing method. Generally 3-tonne sulfuric acid is consumed to produce 1-tonne electrolytic copper.Theoretical price of sulfuric acid is one third of sulfur price. Sulfur price is currently US$ 800-900 per tonne, that is, theoretical price is US$ 250-300 per tonne. However, Chilean copper smelters seem to purchase sulfuric acid at US$ 400-500.