Price trend:

In the past two months, the sulfuric acid market has experienced a significant surge. According to data monitored by SunSirs, the sulfuric acid market price in East China was 637 RMB/ton on October 12th, and by December 12th, it had risen to 1,045 RMB/ton, a cumulative increase of 63.9% in two months. The upward trend remained evident in December, and a short-term decline in the sulfuric acid market is unlikely. Overall, this was the result of a combination of factors including costs, supply, and market sentiment, with significant differentiation observed across different production processes and regional markets.

Market Analysis

From the supply side, in November, domestic sulfuric acid plant maintenance involved an annual processing capacity of approximately 21.38 million tons. Maintenance was concentrated in the core production areas of Central and East China, and major sulfuric acid producers in Shandong and Liaoning also underwent shutdowns for maintenance, resulting in a significant contraction in regional supply. Since December, several regions in China continued to experience plant maintenance or restarts, and overall, domestic sulfuric acid supply slightly declined.

From a cost perspective, the domestic sulfur spot market in December continued the upward trend of November, with prices continuously rising to high levels. Looking back at the past two months, the surge in sulfur prices has been the core driving force, with cost inversions forcing price increases. Sulfur is a key raw material in sulfuric acid production (approximately 0.33 tons of sulfur are consumed to produce 1 ton of sulfuric acid).  Domestic sulfur prices have risen sharply in the past two months, with an increase of up to 130% compared to the beginning of the year. The global sulfur supply landscape has undergone dramatic changes, with export bans due to the Russia-Ukraine conflict and a decrease in exports from Kazakhstan, leading to a widening international supply gap.  This, coupled with strengthened pricing power in the Middle East and increased purchases from countries like Indonesia and India, had reduced domestic port inventories to 2.2 million tons (below a reasonable level). This cost pressure had directly forced a passive increase in sulfuric acid prices; at the same time, pyrite prices were also at high levels, further strengthening the cost support for sulfuric acid produced from ore.

From the demand side, coastal factories had ample export orders, and some sulfuric acid resources were flowing to the international market, further squeezing domestic supply. Domestic downstream industries, mainly phosphorus fertilizers, titanium dioxide, and caprolactam, were experiencing a decline in operating rates. Caprolactam operating rates were relatively high, close to 80%; diammonium phosphate operating rates were only 50%, and some titanium dioxide plants that underwent maintenance had not yet resumed production, but market prices for all these products had risen.

Market Outlook:

Looking ahead, the sulfuric acid market is expected to maintain a trend of continued localized price increases.  On the cost side, sulfur prices remain high and stable, and plant maintenance continues, but downstream resistance is increasing, suggesting that the pace of future price increases will likely slow down. In the medium to long term, attention should be paid to the recovery of international sulfur supply and the pace of capacity release after the completion of maintenance at acid plants.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.