Gulf Shock May Spark Shortage Of World’s Most Critical Industrial Chemical, Used Heavily In Mining

Goldman analysts Kyle Shaffer and Amanda Ross provided clients with a broad overview of industrials and natural resources amid energy disruptions in the Gulf area. In the note, they stated that the well-known Gulf energy shock is set to disrupt LNG production in Qatar for years to come. However, they also highlighted another emerging supply crunch that has received far less attention: sulfuric acid. “Some long-lasting consequences have also started to emerge, including a 3-5 years production loss for LNG facility in Qatar, a 6-12 month re-starting time for some aluminum facilities in the Gulf, and shortage of sulfuric acid which can potentially impact future production for copper and lithium” Shaffer and Ross said. About a third of the world’s sulfur comes from the Gulf region, where it is produced as part of oil and gas refining. Much of the sulfur is exported, primarily to fertilizer and industrial-processing hubs in Asia, North Africa, and, in Qatar’s case, some trading hubs across Asia and Europe. Goldman analyst James McGeoch noted on Wednesday that Shandong sulfuric acid prices are soaring and that China is “slated to suspend sulfur exports from May (sulfur that is a by-product of processing).” He added that part […]

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