China's sulfuric alkali market has experienced a fourth consecutive year of supply shortages, with prices reaching record highs. However, this booming market is not without its hidden challenges. According to the Glauber’s Sulfide Branch of the China Inorganic Salt Association, the sulfuric alkali industry is expected to face significant pressure in 2008 due to rising raw material costs and stricter environmental regulations. As a result, some production facilities may be forced to shut down, signaling a potential reshuffle within the sector. Experts suggest that the industry must move toward standardized competition and orderly development, as only the most efficient and environmentally responsible companies will survive.
Since 2005, domestic demand for sulfuric acid has steadily increased, and production has also grown accordingly. By the end of 2007, total production capacity had reached 700,000 tons per year, with output reaching 528,000 tons last year. However, sodium sulfide production is highly polluting, which has limited the establishment of factories in coastal cities. Additionally, developed countries have strict controls on sodium sulfide manufacturing, contributing to ongoing supply shortages and driving up prices.
The attractive market conditions have drawn many companies to expand their production or launch new projects, but many lack awareness of the risks involved. As a resource-dependent industry, sulfuric alkali production relies heavily on Glauber’s salt and coal. According to the China Inorganic Salt Association, the cost of raw materials for sodium sulfide products rose by 30–80 yuan per ton compared to the same period last year, while coal costs increased by 150 yuan. Adding electricity, packaging, and labor expenses, the average production cost per ton of sodium sulfide has risen between 150 and 320 yuan.
With coal prices surging further since 2008, many sulfuric acid companies are now facing losses. Industry experts recommend that enterprises should focus on adjusting their product structures, developing high-value products such as special sulfide bases and granular sodium sulfide, and increasing the production of premium-grade products like lutetium to achieve higher profit margins.
Moreover, the energy-intensive and polluting nature of sodium sulfide production means it will remain a key target for energy conservation and emission reduction efforts. The industry consumes large amounts of energy and generates significant environmental pollution, including solid waste, wastewater, and emissions. For every ton of sulfuric alkali produced, coal consumption far exceeds national standards, and the discharge of alkaline wastewater and dust poses serious environmental risks.
Experts emphasize that sulfuric alkali companies must accelerate product structure adjustments and invest in high-value-added products. They should actively respond to national energy-saving and emission-reduction policies by investing in technological innovation and adopting More sustainable processes. Only through these measures can the industry achieve long-term, sustainable development. Companies that fail to meet environmental and energy efficiency standards will eventually be phased out of the market.
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