1. Sulfuric acid mist
Since the official implementation of the "Determination of Sulfuric Acid Mist in Waste Gas from Fixed Pollution Sources - Ion Chromatography Method" (HJ544-2016), the sulfuric acid mist values detected by this method in the tail gas of sulfuric acid plants generally exceed the standard, seriously affecting the normal operation of sulfuric acid enterprises.
Analysis of reasons: Firstly, the new method (HJ544-2016) not only includes the traditional definition of sulfuric acid mist, which includes small droplets of sulfuric acid and sulfur trioxide, but also adds soluble sulfates; The second is that the new method oxidizes some sulfur dioxide into soluble sulfates during the sampling detection process, thereby making the measured values higher than the actual values.
The association has repeatedly reported the situation to the Ministry of Environmental Protection, striving to resolve the issue as soon as possible. However, due to the complex composition of sulfuric acid mist detected by the new detection method and the lack of readily available alternative detection methods. The issue raised by the association regarding sulfuric acid mist can only be qualitatively analyzed without quantitative data as support, and relevant departments are unable to revise relevant standards and testing methods in a short period of time.
In 2018, the association will focus on conducting quantitative research on the components of sulfuric acid mist and finding suitable sulfuric acid mist detection methods for the sulfuric acid industry, in order to solve the current problem of sulfuric acid mist exceeding the standard.
2. Overcapacity
Overcapacity has been a major problem that has plagued the development of the sulfuric acid industry in recent years. According to the association's statistics, in 2017, a total of 4.5 million tons of sulfuric acid production capacity was completed and put into operation, and the total sulfuric acid production capacity in China exceeded 130 million tons. In 2018, there were still 11 million tons of newly built sulfuric acid production capacity, and the national sulfuric acid production capacity is expected to exceed 140 million tons by the end of 2018. The demand for sulfuric acid in China remains stable at around 97 million tons. The situation of overcapacity in China's sulfuric acid industry is becoming increasingly severe, and by the end of 2018, the industry's overcapacity rate will exceed 30%.
It is worth noting that out of the 15.5 million tons of newly built production capacity from 2017 to 2018, 10.3 million tons belong to smelting flue gas acid production, accounting for 66.5%. All newly added smelting acid production capacity does not have supporting downstream acid consuming devices, and will all flow into the market. This will have a significant impact on existing sulfuric acid enterprises, and sulfur based and pyrite based sulfuric acid enterprises are likely to be forced to reduce production and stop production. Under the pressure of overcapacity, acid smelting enterprises may choose to treat sulfuric acid at a discounted price in order not to affect their own operation.
3. Carbon trade
On December 19, 2017, the National Development and Reform Commission issued the "National Carbon Emission Trading Market Construction Plan (Power Generation Industry)", announcing the official launch of the national carbon market. Although only the power generation industry is currently included in the pilot scope, the chemical industry as a key energy consuming industry has been repeatedly mentioned by the National Development and Reform Commission in various occasions. However, due to the complexity of the products and processes involved in chemical industry, how to scientifically determine the benchmark value still needs to be fully studied and discussed.
The China Sulfuric Acid Industry Association has been commissioned by the National Development and Reform Commission to conduct in-depth research on carbon emission standards for the sulfuric acid industry. Based on the actual situation of the sulfuric acid industry, carbon emission standards have been established for sulfuric acid production, sulfuric acid production from pyrite, and sulfuric acid production from smelting flue gas. The relevant research report has been submitted. I believe that in the near future, the sulfuric acid industry will also be included in the carbon trading market.
Sulfuric acid enterprises are "energy factories", and the carbon trading market is a significant opportunity for the sulfuric acid industry. Sulfuric acid enterprises should conduct carbon asset verification in advance, understand and master the relevant rules of carbon trade, and prepare for actively participating in carbon trade.
4. Hazardous waste
The National Hazardous Waste List (2016 Edition) jointly released by the Ministry of Environmental Protection, the National Development and Reform Commission, and the Ministry of Public Security was fully implemented in 2017. In addition to the waste sulfuric acid in the old version, the new version of the List also defines purified acid sludge and sulfuric acid waste catalysts as hazardous waste. With the continuous upgrading of environmental protection and safety enforcement efforts, the Catalogue will have a profound impact on the sulfuric acid industry.
As a sulfuric acid enterprise, we should first attach great importance to the safety and environmental protection disposal of hazardous waste, strictly implement relevant laws and regulations, and handle the hazardous waste generated by ourselves. At the same time, we should also recognize the opportunities that hazardous waste treatment brings to sulfuric acid enterprises.
The processes of waste acid cracking and waste acid co firing have become relatively mature. Sulfuric acid enterprises can introduce these relatively mature processes and upgrade their existing equipment. The sulfuric acid plant is not only a production unit, but also an environmental protection unit with waste acid treatment capacity.
5. Clean production
The promotion of clean production is a fundamental transformation of traditional end of pipe pollution control methods, as well as a fundamental transformation of traditional production methods and development models. The evaluation index system for clean production in the sulfuric acid industry, commissioned by the National Development and Reform Commission, the Ministry of Environmental Protection, and the Ministry of Industry and Information Technology, jointly compiled by the China Sulfuric Acid Industry Association and industry leading enterprises, has been basically drafted. After soliciting opinions, it will be submitted to relevant departments. In order to evaluate the indicator system more scientifically and accurately reflecting the clean production level of sulfuric acid enterprises, the association organized an industry expert and technical personnel from more than 10 production enterprises to form a writing group. After six months of visiting more than 30 sulfuric acid production enterprises, the association repeatedly discussed the framework and benchmark values of the clean system through three special discussions. The system divides sulfuric acid plants into five categories based on raw materials: sulfuric acid production, sulfuric acid production from pyrite, sulfuric acid production from smelting flue gas, phosphogypsum production, and sulfur co fired ferrous acid production. Each category is determined based on six indicators, including production process and equipment indicators, resource and energy consumption indicators, resource comprehensive utilization indicators, pollutant generation indicators, product characteristic indicators, and clean production management indicators, to determine specific clean production primary, secondary, and tertiary benchmark values, Enterprises only need to compare the indicators determined by the system one by one to calculate the clean production score of their sulfuric acid plant. This score is a specific quantification of the level of clean production in sulfuric acid enterprises, and will serve as a direct basis for the implementation of clean production policies, issuance of pollution discharge permits, and elimination of outdated production capacity, which is related to the survival and development rights of enterprises.
6. Sulfur
In the first eight months of 2017, sulfur prices were in a mild consolidation period. In just two months in September and October, they skyrocketed from 950 yuan/ton to 1850 yuan/ton. Although the year-end price dropped to 1400 yuan/ton, the market supply was scarce, and even a single order was difficult to obtain during the most tense period, which is rare in the sulfur market in recent years.
Upon further investigation, the main reasons are as follows:
(1) The outbreak of concentrated international demand has caused supply shortages
In 2017, sulfuric acid plants were put into operation in both Morocco and Saudi Arabia. The JPH-3 project of Morocco's OCP company was officially put into operation in October, with a production capacity of 1.4 million tons/year of sulfuric acid, 450000 tons/year of phosphoric acid, and 1 million tons/year of phosphate fertilizer; The Wa'ad Al Shamal project in Saudi Arabia also officially began supplying products to the outside world in September this year. Its four production lines have a total production capacity of 4 million tons/year of sulfuric acid, 1.5 million tons/year of phosphoric acid, and 3.5 million tons/year of fertilizer. Two production lines have already been completed. The total sulfur demand for the two projects is close to 2 million tons per year, greatly diverting the international sulfur trade volume, resulting in a tense situation of international sulfur supply in the fourth quarter of 2017.
(2) Domestic demand remains stable with an increase, and external dependence is high
According to data from the National Bureau of Statistics, the total production of sulfuric acid in China in 2017 was 92.96 million tons, an increase of 1.9% year-on-year; According to the statistics of the China Sulfuric Acid Industry Association, a total of 1.5 million tons of sulfur based sulfuric acid plants were completed and put into operation in 2017. Both in terms of output and production capacity, China's demand for sulfur is very strong.
In 2017, China imported a total of 11.236 million tons of sulfur, and the annual domestic sulfur production is expected to be around 6 million tons. Based on this calculation, China's external dependence on sulfur is as high as 65%.
The high degree of external dependence has reduced China's voice in the international sulfur market, and the domestic sulfur price trend is basically based on the quotes of Middle Eastern suppliers.
Faced with the tense situation in the sulfur market, domestic buyers are also actively responding. Yuntianhua, Kaiphosphorus, and Wengfu established a sulfur joint procurement platform in February this year, joining forces to participate in the international market game. The total demand for sulfur from three enterprises exceeds 5 million tons. If operated properly, it will greatly enhance China's voice in the international market.
As the world's largest sulfur demand country, China's domestic supply is also steadily increasing. The total annual sulfur supply of 1.3 million tons in the Chuandongbei gas field has begun to be released, which will ease the tension of China's sulfur supply and also to some extent resolve the problem of high dependence on foreign countries.
Overall, the changes in the sulfur market in 2017 have exposed the difficult situation of international supply tension and highlighted China's high dependence on foreign countries. Although the difficulties and problems are difficult to solve in the short term, they have pointed out the direction for China's practitioners to respond to policies in the coming years. Reducing internal competition and joining forces for heating is the win-win situation, and focusing on domestic supply is the fundamental one.
7. Environmental tax
The environmental protection tax was officially launched on January 1, 2018, while the pollution discharge fee was suspended. Compared to the two, the focus of environmental protection tax has undergone significant changes. Previously, fees were charged for conventional pollutants, but this year, more attention will be paid to taxation of high pollutants, extending the scope of taxation to specific toxic and harmful substances. At the same time, the State Council has explicitly stated that environmental protection tax belongs to local tax. Therefore, different regions will formulate different tax rates based on their actual situation. Some places may have higher rates, while others may have slightly lower rates, and there will not be a unified tax rate value. The calculation of environmental protection tax is based on the amount of pollution discharged and converted into pollution equivalent. Each pollution equivalent corresponds to a tax rate, and the pollution tax rate for one type of pollutant will be very high.
Sulfur dioxide, as the main emission in the sulfuric acid industry, is required by the environmental protection tax law to have a pollution equivalent value of 0.95 kilograms. Based on the tax amount announced by various regions, sulfur dioxide has been strictly regulated in many places this time. The sulfur dioxide tax amount in Beijing, Tianjin, Hebei, Henan, Jiangsu and other places exceeds the national minimum standard by four times.
8. Sulfuric acid price
In 2017, China's sulfuric acid market experienced a rare good year. At the end of the year, the national average price of sulfuric acid reached 350 yuan/ton, an increase of 100 yuan/ton from the beginning of the year, and there was a sustained and strong expected performance. The main factors driving up the price of sulfuric acid are as follows:
(1) Strong raw material prices
In 2017, there was a significant increase in the prices of sulfur and pyrite. At the end of the year, the price of sulfur was 1350 yuan/ton, a year-on-year increase of 600 yuan/ton, and the highest price in the year reached 1850 yuan/ton; The price of pyrite has shown an upward trend throughout the year due to factors such as safety and heavy snow. At the end of the year, the price of pyrite in Anhui Province was 285 yuan/ton, a year-on-year increase of nearly 100 yuan/ton. The rise in prices of sulfur and pyrite has increased the costs for enterprises, but has provided great benefits to the commercial acid market, which is mainly focused on smelting acid.
(2) Strong demand performance
In 2017, most downstream products of sulfuric acid performed well. Phosphate fertilizer production is stable, and the market is recovering. The year-end price of diammonium reached 2700 yuan/ton, a year-on-year increase of 350 yuan/ton; The annual production of titanium dioxide exceeded 2.87 million tons, reaching a new historical high, with prices maintaining a strong trend throughout the year; The performance of products such as caprolactam and hydrofluoric acid is also relatively optimistic. The good performance of downstream markets has played a driving role in the rise of sulfuric acid prices.
(3) International supply shortage
In 2017, the overall operating rate of the global smelting industry decreased, leading to a decline in smelting acid production. The overall supply and demand situation in the sulfuric acid market was relatively tight, and international sulfuric acid prices rose. Prices in Europe increased nearly three times year-on-year, and the performance of sulfuric acid prices in the Southeast Asian market was also very strong. China's sulfuric acid production enterprises have also seized the opportunity to open up the export market. In 2017, China's sulfuric acid export volume reached 693000 tons, an increase of 990.2% year-on-year, setting a new historical high. Good exports have to some extent alleviated the pressure of overcapacity in China, driving the strong upward trend of the sulfuric acid market.
9. Energy saving
Energy conservation is an eternal theme in the sulfuric acid industry. With the continuous rise of energy prices and the continuous improvement of the domestic carbon trading market, the level of energy conservation of enterprises will directly determine their survival.
Sulfuric acid is an industry that generates energy. Each ton of sulfuric acid produced can produce steam equivalent to 120-180kg of standard coal, which is used for downstream product production. Sulfuric acid plants are known as "energy factories". With the increasingly strict national environmental protection policies, small coal boilers will gradually be phased out, while natural gas supply is relatively tight. In this context, the advantages of by-product steam from sulfuric acid plants will be gradually amplified. Many sulfuric acid plants have become the main source of steam in their chemical industrial parks, and the revenue from selling steam abroad will become increasingly substantial in the future. In addition, governments at all levels are paying increasing attention to energy conservation work, and relevant policies and funding support are strong. Sulfuric acid enterprises should apply for energy-saving subsidies from relevant departments in a timely manner when implementing energy-saving renovation projects, especially energy-saving projects such as low-temperature heat recovery.
10. Relocation
On September 4, 2017, the General Office of the State Council issued the Guiding Opinions on Promoting the Relocation and Renovation of Hazardous Chemical Production Enterprises in densely populated urban areas. The Opinions clearly stated that small and medium-sized enterprises and large enterprises with significant risks and hidden dangers should start relocation and renovation before 2018 and complete them by the end of 2020; All other large and super large enterprises will start relocation and renovation before 2020, and be completed by the end of 2025.
As a producer of hazardous chemicals, sulfuric acid enterprises bear the brunt. According to the association, there are a total of 3.48 million tons of sulfuric acid production capacity, 480000 tons of diammonium phosphate, and 1.51 million tons of monoammonium phosphate in the relocation list. Enterprises in the industry, including Xiamen Xiahua, Zhonghua Fuling, Hubei Zhongfu, Yichang Xinyangfeng, etc., are all planning to relocate.