Frasch sulfur production costs

Our price forecast for sulfur over the next decade is predicated primarily upon two basic assumptions (1) that the Frasch sulfur producers, although now a less dominant supply source in the North American and world markets, will continue to exert price leadership, especially during periods when a tight supply demand situation exists, such as today, and (2) that the pricing of sulfur in the U.S. will be determined, in large part, by the production economics of the U.S. Frasch industry - that is, the highest cost marginal supplier. 

Figure 2. U.S. Frasch sulfur estimated past and projected production costs by major producer ...

By 1975, the sulfur market had become very tight in regards to supply and demand. Sulfur prices rose steadily as a result of the decline in involuntary sulfur production, the increase in Frasch production costs, logistic supply problems, an expansion in fertilizer manufacturing, and the ability of the fertilizer industry to pass increased sulfur prices on to their consumers. 

Fear remained within the industry. How powerful were the Americans Could the previous tales be trae In early 1907, this time the Italian government sent a representative, L. Baldaeei, to the U.S. to evaluate the Frasch competition. He only eonfirmed what Dompe had previously reported. The government report officially stated that Fraseh was a serious threat and that the two groups should form an allianee. The report went on to state that U.S. sulfur could be delivered at less than 12 per toime in Europe, while Sicilian production costs were 20 per tonne. The news was devastating to the sulfur industry of Sicily. 

After nearly a century of world dominance in the production of native sulfur, the U.S, Frasch industry shuttered its last mine as a result of low sulfur prices, continually increasing competition from low-cost recovered sulfur producers, escalating production costs, and technical problems. 

Therefore, we believe that the cost position of Frasch producers will determine the trend in sulfur prices, so long as the Frasch industry remains the marginal supply source - a condition that will continue over the forecast period. If, at some future date, the supplies of by-product sulfur reach a level which will fully satisfy the demand, this assumption may no longer be valid. 

Elemental sulfur, also called brimstone," is the preferred raw material for sulfuric acid production whenever it is available at a reasonable cost. Elemental sulfur may be mined by the well-known Frasch process or recovered from volcanic ores, sour" natural gas, or oil. It is also possible and sometimes commercially feasible to produce elemental sulfur from pyrites, other sulfide ores, and coal. 

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