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Sulphur 419 Jul-Aug 2025

16 July 2025

Smelters process Chilean concentrate for free

Smelters process Chilean concentrate for free

The mid-year negotiations between Antofagasta (AMSA) and Chinese smelters have concluded with a historic settlement of $0/0¢. While unprecedented, the outcome is not surprising, as it lands slightly above the midpoint of the believed negotiating range, from -$15/-1.5¢ proposed by Antofagasta +$10/1.0¢ from the Chinese smelters. Moreover, this result aligns with market participants’ rumours circulating prior to the agreement. Separately, rumours suggest Q3 contract negotiations between one top miner and Chinese smelters concluded at levels ranging from -$25/-2.5¢ to (+)$5/0.5¢.

As is to be expected in long-term negotiations, the agreed price remained firmly above the first half average of spot terms, although stands out this time is the absolute difference of $24/2.4¢ units, which far exceeds the $17/1.7¢ unit deviation observed in 2021. Although this does not imply a perfect correlation between the first-half average spot terms and the mid-year benchmark, it does suggest that smelters could have faced a more challenging scenario, potentially even forcing them to accept negative terms under tighter market conditions.

Latest in Asia

Topsoe technology chosen for Chinese SAF plants

Topsoe has been selected by Zhongneng Yida New Energy Co., Ltd to deliver technology for production of sustainable aviation fuels (SAF) at a new facility to be located at the city of Shijazhuang in the Shenze Economy Development Zone of Hebei province. Zhongneng Yida plans to export the produced SAF to European and local Chinese markets. Topsoe will provide its HydroFlex® technology and catalysts as part of the agreement. The facility will produce 400,000 t/a of SAF, utilising used cooking oil for the feedstock.

Anti-dumping duty on insoluble sulphur

India India has imposed five-year anti-dumping duties on six Chinese imports, including insoluble sulphur, mainly used in the vulcanisation of rubber. The move follows an investigation by India’s Directorate General of Trade Remedies (DGTR) last year, following a complaint by Oriental Carbon and Chemicals in March 2024. The period covered by the investigation was from 1st Jan 2023 to 31st Dec 2023, while the injury investigation period ran from April 2020 to 31st Dec 2023. DGTR made a determination that Chinese exporters had been selling the six products at unfairly low prices, adversely affecting the profitability of Indian producers. DGTR says that the duties it has imposed are “aligned with WTO norms” and aim to protect domestic industries from unfair trade practices and address the growing trade imbalance with China. According to the trade authority, the market share of the countries subject to duties “has been significantly increasing” while local Indian industry’s capacities are “lying idle” amid growing demand. n

KazZinc to invest in increased SO2 recovery

Kazakhstan Zinc (KazZinc) is progressing with plans to reduce sulphur dioxide emissions from its Ust-Kamenogorsk site following an environmental audit in December 2024 as a result of smogs caused fugitive emissions which forced residents to stay indoors. The site has reduced emissions from 69,000 t/a in 2011 to 15,000 t/a, but plans to invest $210 million in in new technologies, including sulphur dioxide recovery systems and upgraded filters for solid particle capture. The key measure is the modernisation of gas purification units which is expected to reduce SO2 emissions by 2,200 t/a by 2026. Another important initiative is the construction of the “Hydropolimet” workshop at the KazZinc Ridder metallurgical complex, which aims to reduce sulphur dioxide emissions by 714 t/a.