“It is a rainy night and smelters have leaky roofs,” Du Fei and Lily Li said in a jointly published report. Both are analysts with Jinrui Futures, Jiangxi Copper’s research arm.
“Sulfuric acid stock was already running high at smelters before the lunar new year holiday [in January]. Then the demand for acid deteriorated further when the virus spread,” they added.
During the process of smelting concentrates into metal, one tonne of copper output generates three tonnes of sulfuric acid, while one tonne of zinc output generates two tonnes of acid.
With the expansion of primary smelting capacity, Chinese sulfuric acid capacity is also forecast to grow by 1.06 million tonnes per year in...