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Sulfuric Acid: Price Is "Hanging" Prrce m a y r e s p o n d t o recent $ 3 . 0 0 sulfur slash but some m a k e r s cite i n c r e a s e d p l a n t a n d shipping costs
U R D I N A R I L Y , PRICE CHANGES in c r u d e
sulfur are reflected in sulfuric acid faster than you can say "tank car." The acid is a small margin product of large volume—usually responsive to changes in r a w material a n d processing costs. There is still a possibility that last month's $3.00 per ton reduction in the price for Frasch-mined sulfur will be shown in the price for t h e acid, which is now on the basis of $22.35 p e r ton for t h e 66° Be. product. This price has prevailed since 1954. Sulfuric acid producers mostly are noncomittal. But some feel t h a t a reduction in prices would not b e in order right now. They explain t h a t the lower sulfur cost is offset by the rise that has t a k e n place in rail and trucking rates this year and by cumulative increases in labor and other charges over the past several years. • C o m p e t i t i v e M a r k e t . These boosts
in manufacturers' production a n d distribution costs have been piling up while sulfuric acid prices remained stable. T h e cheaper mine price for crude sulfur—$23.50 per ton—will be reflected by the acid, notwithstanding, others think. They contend that this will take place as soon as higher priced sulfur bought on contract is b u r n e d up. Emphasis is also placed on t h e competitive status of sulfuric acid, now being supplied to industry and agriculture b y some 70 manufacturers and distributors. Further, the m a r k e t tone has not been helped by t h e moderate reduction in consumption that has occurred this year. One of the largest outlets for sulfuric acid, superphosphate fertilizer, apparently took less during the first half of 1957, the active consuming period. Output from both captive and outside plants was* 1,272,799 short tons as
Sulfuric Acid O u t p u t 18.0,
Millions o f Short Tons
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against 1,367,155 tons in the first half of 1956. • Textile Consumption. Acid demands this month are reported to h a v e improved slightly in the steel, rayon, and transparent film industries after lagging earlier. These t h r e e account for about 12% of sulfuric consumption, while fertilizer takes 3 3 % of the total. The acid is used to manufacture both viscose and acetate fibers, and shipments of cellulosic fibers during the eight months e n d e d w i t h August amounted to 744.1 million p o u n d s . This is hardly 1% less than the q u a n tity shipped in the January-August p e riod last year. Rayon takes a b o u t l 1 / 2 p o u n d s of sulfuric to each p o u n d of fiber. Sulfuric acid is entering into such myriad chemical and nonchemical processes that even its suppliers are u n a b l e to list them. Its use in cellophane is virtually on a pound-for-pound basis. And according to a nonmanufacturing trade estimate, cellophane production at the end of this year will b e in t h e neighborhood of 4 7 5 million p o u n d s annually. During 1958 another 100 million pounds will be a d d e d to this total. American Viscose will bring into production its new plant at M a r c u s Hook, Pa. Its rated capacity will b e 50 million pounds. D u Pont also expects to place its n e w Tecumseh, Kan., cellophane unit on stream during t h e last quarter of 1958. • Ammonium Sulfate. On the other hand such major chemical uses for t h e acid as ammonium sulfate, both coke oven and synthetic, experienced a lower operating rate d u r i n g the first half of 1957. Production for both was 1,040,957 short tons this year against, 1,077,303 tons for the first six months last year. Other large consuming industries are inorganic pigments, aviation gasoline, industrial explosives, synthetic detergents, alcohols, and a long list of organic chemicals. As a group, their annual needs for sulfuric acid in t h e past have been in the order of 4 to 5 million tons. T h e tank car price for 6 6 ° Be. acid shows an increase over a 10-year period of 1 3 1 / 2 % . T h e general commodity price level in the meantime has increased more than 2 2 % . E v e n if sulfuric is maintained a t its present p r i c e levels, producers point out, it is a m o n g die industry's cheapest products— costing roughly a little over 1 cent p e r pound.
