Sulfuric Acid Surcharge

Dear Valued Customer:

As you probably know, the price of sulfuric acid is a significant component to our production process and has a substantial impact on expenses at our Jackson, MS plant. Sulfuric acid is used in the activity of most of our catalyst and bleaching earth clays products.

To address major fluctuations in sulfuric acid costs, we have updated our Surcharge Program. A raw material surcharge may appear as a separate line on your invoice, depending on the average price of sulfur. Sulfur is a key ingredient to produce sulfuric acid.

Our sulfuric acid pricing is subject to escalation/de-escalation concurrent with changes in the average contract price of Tampa recovered sulfur as reported by Green Markets. The source of sulfur pricing (Tampa Recovered Sulfur) is

EP Engineered Clays Corporation will adjust Bleaching Earth pricing on a quarterly basis when the Tampa Sulfur price is outside the range of $20/LT - $80/LT.

The following formulas will be used to calculate the price changes:

-When the Quarterly Tampa Sulfur price is below $20/LT
Discount $ / ST = ($20/LT – Quarterly Tampa sulfur price, LT) * 0.134

-When the Quarterly Tampa Sulfur price is above $80/LT
Surcharge $ / ST = (Quarterly Tampa Sulfur price, LT - $80/LT) * 0.134

Quarterly pricing is published during the first month of a quarter. The sulfuric acid price change will be applied for the following quarter with a 2-month lag. For example, Q1 Tampa sulfur pricing will be published in January. The Q1 Sulfuric Acid Price Change will be effective from March 1 through May 31.

Our current Sulfuric acid surcharge (12-01-18 through 02-28-19) is $8.04/short ton or $8.86/metric ton.