In 2025, the sulfuric acid industry exhibited distinct characteristics of "strong external demand, differentiated domestic demand, optimized production capacity, and a significant price surge." Production capacity continued the trend of "new and old capacity replacement," with outdated, restricted capacity accelerating its exit and high-end capacity precisely filling the gap. The market was affected by changes in import and export patterns, fluctuations in downstream demand, and soaring raw material costs. According to data from SunSirs, the price increase for the year reached a staggering 117%. The following is a summary of the key events of the year:

I. Policy-Driven Transformation: Standard Upgrades and Production Capacity Control as Dual Drivers

July 1st: The new national standard for industrial sulfuric acid officially came into effect. The newly revised national standard for industrial sulfuric acid (GB/T 534-2024) was implemented as scheduled, adding limits on heavy metals such as chromium and tightening control over key indicators such as iron in qualified concentrated sulfuric acid, effectively aligning with the Ministry of Ecology and Environment's policies on heavy metal pollution control.

Throughout the year: The "Guidance Catalogue for Industrial Structure Adjustment" was implemented. Based on the requirements of the "Guidance Catalogue for Industrial Structure Adjustment (2024 Edition)," various regions systematically promoted the optimization of sulfuric acid industry capacity. Sulfuric acid production facilities with a capacity of less than 300,000 tons/year using sulfur (excluding electronic-grade sulfuric acid) and those with a capacity of less than 200,000 tons/year using pyrite were classified as restricted, while those with a capacity of less than 100,000 tons/year were classified as obsolete. Many regions did not add new traditional sulfur-based or pyrite-based sulfuric acid projects, focusing instead on supporting technological upgrades and high-end product development in sulfuric acid-consuming enterprises.

Within the year: Local industrial coordination policies were introduced intensively. Tongling City and other major sulfuric acid producing regions issued special policies to, on the one hand, promote the development of sulfuric acid-consuming industries such as hydrofluoric acid and titanium dioxide, thereby increasing local sulfuric acid consumption capacity; and on the other hand, deepen resource coordination with surrounding cities and explore the establishment of cross-regional industrial cooperation mechanisms to expand consumption channels in other markets. At the same time, efforts are being made to strengthen the construction of infrastructure such as liquid chemical terminals to ensure smooth transportation and export channels for sulfuric acid.

II. Optimization of Production Capacity Structure: Obsolete production capacity was phased out, and high-end and supporting production capacities filledthe gap

Throughout the year: The elimination of restricted and outdated production capacity accelerated.  Various regions strictly implemented industrial policies, and several traditional sulfuric acid production facilities with capacities of 100,000-300,000 tons per year, using sulfur or pyrite as raw materials, gradually exited the market. The proportion of outdated capacity further decreased. The industry's capacity structure continued to optimize, with an increase in the proportion of metallurgical sulfuric acid and large-scale sulfur-based sulfuric acid production, and the characteristic of capacity matching downstream industries became increasingly prominent.

Within the year: Supporting production capacity was steadily advancing. Companies in the Tongling area, such as Annada, were progressing with the construction of projects for titanium dioxide and lithium battery cathode material precursors. It is estimated that these projects will add 560,000 tons of annual sulfuric acid demand upon completion. In many regions, sulfuric acid plants were being built to support the smelting industry, strengthening the synergy between capacity layout and downstream demand areas, and effectively improving capacity utilization.

Throughout the year: Companies actively carried out adaptation and modification to meet the new standards. Key sulfuric acid enterprises such as Anhui Jiuhua New Materials began implementing adaptive modifications to comply with the new national standard for "Industrial Sulfuric Acid" starting in March. They revised internal process procedures, purchased advanced testing equipment such as ICP spectrometers, and added key control points throughout the production process. They completed testing on over 200 batches of samples, ensuring that their products fully meet the new standard requirements and laying a solid foundation for quality in market competition.

III. Market Fluctuations and Adjustments: Strong external demand drove significant price increases throughout the year.

March: Sulfuric acid prices began their first rapid increase. The domestic sulfuric acid market experienced its first surge in prices this year. According to data from SunSirs, as of March 28th, the average price of 98% sulfuric acid increased by 23.56% compared to the beginning of the month, reaching 670.64 RMB/ton, a year-on-year increase of 14.64%. This price increase was mainly driven by high sulfur prices (a key raw material) and strong demand from the downstream phosphate fertilizer and titanium dioxide industries during their peak spring production season. Environmental restrictions and production cuts in some regions further exacerbated the supply-demand imbalance.

August: Sulfuric acid exports doubled year-on-year, driven by strong external demand. Sulfuric acid exports reached 435,000 tons in August, a significant increase of 106.71% year-on-year. Cumulative exports reached 3.0539 million tons, a year-on-year increase of 103.54%. The export market was concentrated in Saudi Arabia, Morocco, and Chile, which together accounted for 77.66% of exports. Guangxi, Shandong, and Anhui were the main exporting provinces, accounting for 89.53% of the total. Strong export demand diverted domestic resources, further driving up prices.

August: Import volumes remained low, with a significant price difference between high-end and ordinary sulfuric acid. Import volume in August was only 0.86 million tons, a year-on-year decrease of 45.44%. Imports mainly came from South Korea and Taiwan. The average import price of ordinary industrial sulfuric acid was approximately US$75/ton, while the average price of high-end, high-quality sulfuric acid imported from Taiwan reached US$730.72/ton. This difference in product structure led to a significant price disparity.

October-December: Prices experienced a second round of sharp increases, rising by over 60% in two months. Driven by tight global sulfur supply, the price of raw sulfur increased significantly, rising by 130% compared to the beginning of the year. This strong cost pressure led to a surge in sulfuric acid prices. According to data monitored by SunSirs, the price of sulfuric acid in East China rose from 637 RMB/ton on October 12th to 1,045 RMB/ton on December 12th, a cumulative increase of 63.9% in two months, and an increase of 166.67% compared to the lowest price of the year. During this period, sulfuric acid producers in Jiangxi, Zhejiang, Hunan, and Hubei provinces underwent concentrated maintenance, further tightening supply and reinforcing the upward price trend. Many companies in Central and South China repeatedly raised their prices, with increases generally ranging from 40 to 100 RMB/ton.

December 18: Two associations jointly took action to ensure supply and stabilize prices. In response to the impact of drastic fluctuations in sulfuric acid prices on phosphate fertilizer production, the measures included: 1. Prioritizing sulfuric acid supply to phosphate fertilizer production, strictly controlling exports, and ensuring that export prices are no lower than domestic prices; the domestic price of metallurgical sulfuric acid should not exceed the price on December 11th; 2. Promoting the establishment of long-term and stable purchasing and sales relationships between phosphate fertilizer and sulfuric acid enterprises; 3. Establishing a reasonable pricing mechanism to avoid blind and drastic price fluctuations and ensure stable agricultural production.

IV. Technological and Industrial Upgrading: Accelerated transition towards high-end industries and deepened collaboration across the industrial chain.

Within the year: Breakthroughs were achieved in high-end electronic-grade sulfuric acid technology.  Besides Nanhua Company, several other companies in the industry accelerated their research and development and capacity expansion for electronic-grade sulfuric acid, focusing on overcoming key technologies such as high-purity purification and heavy metal control. As a critical chemical reagent in the semiconductor industry, the market demand for electronic-grade sulfuric acid continued to grow with the development of new energy and semiconductor industries, becoming a core direction for the industry's high-end transformation.

Throughout the year: Industry-academia collaboration drove quality upgrades. Various regions guided enterprises to strengthen industry-academia cooperation, focusing on the research and development of high-end products such as reagent-grade sulfuric acid and fuming sulfuric acid, and encouraging the introduction of key manufacturers of electronic-grade sulfuric acid. Through technological innovation, they aimed to increase product added value, escape the predicament of low-end product price competition, and enhance the industry's core competitiveness.

Within the year: The coordinated development of the industrial chain continued to deepen. Major production regions were promoting the integrated development of the "sulfuric acid - downstream acid-consuming industries," focusing on attracting downstream enterprises in industries such as hydrofluoric acid, lithium carbonate, and titanium dioxide. At the same time, cross-regional resource collaboration was being strengthened, such as Tongling leveraging its sulfuric acid resource advantages to connect with the fluorine chemical industry in Xuancheng, achieving resource complementarity and win-win development.

V. Reshaping of the Trade Landscape: Enhanced export orientation and prominent regional characteristics.

Throughout the year: Export markets were highly concentrated, with external demand providing crucial support. Sulfuric acid exports exceeded 4 million tons in 2025, with export markets highly concentrated in the Middle East, Africa, and South America. Saudi Arabia was the largest export destination. General trade dominates exports, accounting for 99.96%, becoming an important channel for absorbing industry capacity.

Throughout the year: Low import dependence, significant structural differentiation. Total imports were less than 120,000 tons, mainly from South Korea and Taiwan, with South Korea supplying primarily ordinary industrial sulfuric acid and Taiwan focusing on high-end products. Imports were concentrated in Shandong, Jiangsu, and Shanghai, with the average price of high-end sulfuric acid imports being more than 10 times higher than that of ordinary products.

Within the year: Upgraded logistics infrastructure ensured smooth trade. Major production areas such as Tongling were accelerating the construction of liquid chemical terminals, promoting projects such as the renovation and expansion of the liquid chemical terminal of Anhui Port Logistics Co., Ltd., adding several 3,000-5,000-ton chemical berths, and improving sulfuric acid water transportation capacity. At the same time, efforts were being made to secure additional shipping capacity quotas and expand the bulk chemical tanker fleet, providing guarantees for sulfuric acid exports and inter-regional transportation.

In summary, in 2025, the sulfuric acid industry, guided by policies, accelerated quality upgrades and capacity optimization, with outdated capacity exiting the market in an orderly manner and high-end capacity filling the gap precisely. The most significant feature on the market side was a substantial price increase, with a prominent increase throughout the year. The core driving factors included soaring sulfur prices, concentrated maintenance on the supply side leading to reduced capacity, and strong exports diverting resources. Later, timely policy interventions stabilized market expectations. The trade side showed a "stronger external demand, weaker domestic demand" characteristic, with external demand becoming a crucial support for industry operations. The industrial side focused on high-end transformation and industrial chain collaboration, laying the foundation for high-quality development of the industry. In the future, fluctuations in raw material prices, increased demand from downstream emerging industries, and changes in the international market will continue to affect industry operations. High-end development, integration, regional collaboration, and stable price operation will become the core development directions for the industry.

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