Multi-client Report

SULFURIC ACID MARKET STUDY FOR GCC & IRAQ March 2016

Table of Contents Section 1 Executive Summary............................................................................................................................. 6 1.1 Introduction and Methodology ................................................................................................................... 6 1.2 Global Sulphuric Acid Market ..................................................................................................................... 7 1.2.1 Demand ................................................................................................................................................. 7 1.2.2 Supply.................................................................................................................................................. 10 1.2.3 Trade ................................................................................................................................................... 11 1.3 Regional Sulphuric Acid Market ............................................................................................................... 11 1.3.1 Demand ............................................................................................................................................... 11 1.3.2 Supply.................................................................................................................................................. 14 1.4 Conclusions ............................................................................................................................................... 15 Section 2

Introduction ........................................................................................................................................ 17

Section 3

Methodology ...................................................................................................................................... 18

Section 4 Global Sulphuric Acid Market ........................................................................................................... 19 4.1 Demand ...................................................................................................................................................... 19 4.2 Supply......................................................................................................................................................... 22 4.3 Trade ........................................................................................................................................................... 23 Section 5 Saudi Arabia ....................................................................................................................................... 24 5.1 Demand ...................................................................................................................................................... 24 5.1.1 Ma'aden Phosphate Company............................................................................................................. 24 5.1.2 Raez Sulphates Factory ...................................................................................................................... 25 5.1.3 Methanol Chemicals Company (CHEMANOL) .................................................................................... 25 5.1.4 The National Titanium Dioxide Co. Ltd. (Cristal) .................................................................................. 25 5.1.5 Pioneers Chemicals Factory (Rowad) ................................................................................................. 26 5.1.6 Prime Basic Chemicals Ltd. ................................................................................................................. 26 5.1.7 Albiariq Fertilizers (PFP) ...................................................................................................................... 26 5.1.8 National Company for Sulphur Products (Rawabi) .............................................................................. 26 5.1.9 National Chemical Fertilizer Company (Ibn Al-Baytar)......................................................................... 26 5.1.10 Saudi International Petrochemical Company (Sipchem)...................................................................... 26 5.1.11 Middle East Battery Company ............................................................................................................. 26 5.1.12 National Batteries Co (Battariat) .......................................................................................................... 27 5.1.13 Water Desalination and Water Treatment Industry in Saudi Arabia ..................................................... 27 5.2 Supply......................................................................................................................................................... 28 5.2.1 Basic Chemicals National Company (BCNC) ...................................................................................... 28 5.2.2 Ma'aden Phosphate Company............................................................................................................. 28 5.2.3 National Company for Sulphur Products (NCSP) ................................................................................ 29 5.2.4 Prime Basic Chemicals Ltd. ................................................................................................................. 29 5.2.5 Raez Sulphates Factory ...................................................................................................................... 29 5.2.6 Ruwad Chem ....................................................................................................................................... 29 5.2.7 Saudi Arabian Fertilizer Company (SAFCO) ....................................................................................... 29 5.3 Trade ........................................................................................................................................................... 29 Section 6 United Arab Emirates ........................................................................................................................ 30 6.1 Demand ...................................................................................................................................................... 30 6.1.1 Gulf Fluor ............................................................................................................................................. 30 6.1.2 Borouge ............................................................................................................................................... 30 6.1.3 Water Desalination and Water Treatment Industry in UAE .................................................................. 30 6.2 Supply......................................................................................................................................................... 30 6.2.1 Gulf Fluor ............................................................................................................................................. 31 6.2.2 Falcon Chemicals ................................................................................................................................ 31 6.3 Trade ........................................................................................................................................................... 31 Section 7 Kuwait ................................................................................................................................................. 32 7.1 Demand ...................................................................................................................................................... 32 7.2 Supply......................................................................................................................................................... 32

7.2.1 Kuwait Sulphuric Acid Company (KSAC)............................................................................................. 32 7.2.2 ChemiKuwait for Chemical Industries .................................................................................................. 32 7.3 Trade ........................................................................................................................................................... 33 Section 8 Qatar ................................................................................................................................................... 34 8.1 Demand ...................................................................................................................................................... 34 8.1.1 Qatar Fuel Additives Company Limited (QAFAC) ................................................................................ 34 8.1.2 Water Desalination and Water Treatment Industry in Qatar ................................................................ 34 8.1.3 Other Petrochemical Companies ......................................................................................................... 34 8.2 Supply......................................................................................................................................................... 34 8.2.1 Qatar Acids Company.......................................................................................................................... 35 8.3 Trade ........................................................................................................................................................... 35 Section 9 Oman .................................................................................................................................................. 36 9.1 Demand ...................................................................................................................................................... 36 9.2 Supply......................................................................................................................................................... 36 9.2.1 Suhail Chemical Industries .................................................................................................................. 36 9.3 Trade ........................................................................................................................................................... 36 Section 10 Bahrain ........................................................................................................................................... 38 10.1 Demand .................................................................................................................................................. 38 10.1.1 Electricity & Water Authority (EWA) and Private Water Desalination Plants........................................ 38 10.1.2 Gulf Petrochemical Industries Company (GPIC) ................................................................................. 38 10.1.3 Aluminium Bahrain (Alba) .................................................................................................................... 38 10.1.4 Bahrain Aluminium Extrusion Company (Balexco) .............................................................................. 38 10.2 Supply..................................................................................................................................................... 38 10.2.1 Gulf Acid Industries.............................................................................................................................. 39 10.3 Trade ....................................................................................................................................................... 39 Section 11 Iraq .................................................................................................................................................. 40 11.1 Demand .................................................................................................................................................. 40 11.1.1 State Company for Phosphates ........................................................................................................... 40 11.1.2 Water Desalination and Water Treatment Industry in Iraq ................................................................... 40 11.2 Supply..................................................................................................................................................... 40 11.2.1 State Company for Phosphates ........................................................................................................... 41 11.2.2 Al Furat State Company for Chemical Industries ................................................................................. 41 11.2.3 Mishraq Sulphur State Company ......................................................................................................... 41 11.3 Trade ....................................................................................................................................................... 41 Section 12

Conclusions ................................................................................................................................... 42

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TABLES

PAGE

Table 1

Regional Sulphuric Acid Consumers.................................................................................................. 12

Table 2

Regional Sulphuric Acid Plant Capacities.......................................................................................... 14

Table 3

Regional Supply/Demand for Sulphuric Acid ..................................................................................... 16

Table 4

Key Sulphuric Acid Consumers in Saudi Arabia ............................................................................... 24

Table 5

Sulphuric Acid Plant Capacities in Saudi Arabia ............................................................................... 28

Table 6

Key Sulphuric Acid Consumers in UAE ............................................................................................. 30

Table 7

Sulphuric Acid Plant Capacities in UAE ............................................................................................. 30

Table 8

Key Sulphuric Acid Consumers in Kuwait ......................................................................................... 32

Table 9

Sulphuric Acid Plant Capacities in Kuwait ......................................................................................... 32

Table 10

Key Sulphuric Acid Consumers in Qatar......................................................................................... 34

Table 11

Sulphuric Acid Plant Capacities in Qatar ........................................................................................ 34

Table 12

Key Sulphuric Acid Consumers in Oman ....................................................................................... 36

Table 13

Sulphuric Acid Plant Capacities in Oman ...................................................................................... 36

Table 14

Key Sulphuric Acid Consumers in Bahrain ..................................................................................... 38

Table 15

Sulphuric Acid Plant Capacities in Bahrain ................................................................................... 38

Table 16

Key Sulphuric Acid Consumers in Iraq .......................................................................................... 40

Table 17

Sulphuric Acid Plant Capacities in Iraq ........................................................................................... 40

Table 18

Regional Supply/Demand for Sulphuric Acid ................................................................................. 42

FIGURES

PAGE

Figure 1

Sulphuric Acid Global Demand by End-Use .................................................................................... 7

Figure 2

Global Sulphuric Acid Demand by Region ....................................................................................... 8

Figure 3

Global Sulphuric Acid Consumption Forecast by Region .............................................................. 9

Figure 4

Global Sulphuric Acid Production Forecast by Region ................................................................. 10

Figure 5

Regional Sulphuric Acid Consumption by Country ...................................................................... 13

Figure 6

Regional Sulphuric Acid Consumption by Application ................................................................. 13

Figure 7

Regional Sulphuric Acid Plant Capacities, by Country ................................................................. 15

Figure 8

Global Sulphuric Acid Demand by End-Use .................................................................................. 19

Figure 9

Sulphuric Acid Global Demand by Region ..................................................................................... 20

Figure 10

Global Sulphuric Acid Consumption Forecast by Region ............................................................ 21

Figure 11

Global Sulphuric Acid Production Forecast by Region ................................................................. 22

Figure 12

Sulphuric Acid Net Trade in UAE ..................................................................................................... 31

Figure 13

Sulphuric Acid Net Trade in Qatar ................................................................................................... 35

Figure 14

Sulphuric Acid Net Trade in Oman................................................................................................... 37

Figure 15

Sulphuric Acid Net Trade in Bahrain ............................................................................................... 39

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Executive Summary

Section 1 1.1

Executive Summary

INTRODUCTION AND METHODOLOGY

The objective of this study is to conduct a market analysis that will help clients understand the market of sulphuric acid within Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain, and Iraq. Sulphuric acid is one of the largest-volume chemicals produced globally. The principal use of sulphuric acid is in the manufacture of fertilizers, both ammonium phosphates and ammonium sulphates. The growth of the market is led by high economic and population growth in the emerging markets. Sulphuric acid is a direct derivative of sulphur and mainly used in the production of fertilizers. Fertilizers make up about 70 percent of global sulphuric acid demand. Other applications include chemicals, petroleum refining, ore leaching and rubber production. Extensive primary research has been carried out in the GCC and Iraq to identify sulphuric acid consumers and quantify the market data especially the consumption levels of such consumers. The primary research was mainly in the form of phone calls and a few face-to-face meetings. Over 40 interviews have been performed to confirm data on the demand and supply details of sulphuric acid in the region. The primary work was successful due to proficiency of the Sussex Consultant and due to the support and cooperation of the large chemical network that Sussex Consulting enjoys. Further secondary research was performed to complement the primary findings. The secondary work included data mining and extracting of information from various sources such as annual reports, news releases, companies’ publications, trade databases, non-confidential projects that Sussex Consulting has handled and many other sources. The approach for estimating the historical demand for caustic soda in the GCC was based on identifying key users and analysing trade statistics and production rates. A number of caustic soda users and producers in the GCC have been interviewed to confirm certain hypotheses.

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