Price trend:

In late December, the domestic sulfuric acid market reversed its upward trend and began to decline due to raw material price fluctuations. Prices in major production areas such as Shandong fell slightly, while some areas in East and Central China maintained high prices. The focus of transactions shifted downwards, and the supply-demand dynamics intensified. According to market monitoring data from SunSirs, the price of sulfuric acid was 1,045 RMB/ton on December 10th, and continued to fall to 960 RMB/ton on December 26th, a total decrease of 8.13%. Prices of sulfuric acid from smelting operations in Shandong and Yunnan regions were among the first to decline, becoming a key indicator of the localized market downturn.

Market Analysis

From the supply side, sulfuric acid producers in Jiangxi, Zhejiang, Hunan, and Hubei provinces were undergoing concentrated maintenance, and some companies had even added new maintenance plans. The overall tight supply situation in the market had not fundamentally changed. Although sulfur prices slightly decreased due to policy influences, the prices of raw materials such as pyrite remained high and firm, providing strong support for sulfuric acid prices. In most regions, sulfuric acid plants maintained stable prices due to low inventory levels.

The weak demand further exacerbated the downward pressure on some regional markets. As the largest downstream sector for sulfuric acid, the phosphate fertilizer industry was temporarily purchasing mainly for essential needs. With the winter fertilizer stockpiling coming to an end, the expected demand support was declining. At the same time, the number of companies undergoing maintenance in chemical industries such as titanium dioxide increased, leading to a decrease in operating rates and reduced enthusiasm for purchasing sulfuric acid. Taking the Shandong market as an example, weaker downstream demand had increased the pressure on acid producers to sell their products, resulting in a subdued market atmosphere. Companies were proactively lowering prices to boost sales, leading to a localized downward price trend. In Yunnan, although external orders had increased due to lower acid prices compared to surrounding areas, the overall transaction price trend remained downward.

Market Outlook

According to SunSirs, the sulfuric acid market is expected to remain stable in the short term, although some regions may still experience slight price corrections. On the one hand, clear policy guidance on price stability and supply assurance suggests that the previously high acid prices are likely to gradually return to a more reasonable range; on the other hand, cost support will continue to exist, limiting the extent of price declines. In the medium to long term, market trends will largely depend on the pace of recovery in international sulfur supply, the capacity release after maintenance at sulfuric acid plants, and the strength of demand recovery in downstream sectors such as phosphate fertilizers and new energy materials. The overall ex-factory price is expected to remain in the range of 850-1,000 RMB/ton.

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