SunSirs: Sulfuric Acid Prices Keep Climbing

Recently, the domestic sulfuric acid market has shown a strong upward pattern, and prices have repeatedly broken through high levels. The rally was driven by strong cost support and regional supply tightening.

Cost pressure is the core driver of price increases

The biggest driver of this round of sulfuric acid price increases comes from the strong rise in the raw material side. As the two main raw materials for sulfuric acid production, the prices of sulfur and pyrite have shown a continuous upward trend.

The price of sulfur continues to soar. Due to the continuous tightening of Russian supply and the release of global demand, the supply in the international sulfur market is tight, resulting in the continuous rise of prices. As of the time of publication, the sporadic negotiation price of imported bulk particles along the Yangtze River coast of major trade zones has risen to 3800-3850 RMB/ton. The production of one ton of sulfuric acid requires about 0.33 tons of sulfur, so the cost change of sulfur has a direct impact on the price of sulfuric acid. Pyrite prices also rose in tandem, further strengthening the support of the cost side.

Contraction in supply is a key factor driving up prices

In addition to cost factors, the contraction of the supply side is also the key to driving up prices. The sharp rise in the price of sulfur has led to a sharp increase in the production costs of sulfur enterprises, profits have been severely squeezed, and under the pressure of high costs, some enterprises have been forced to stop production. At the same time, the shortage of raw materials has further restricted the capacity release of some acid plants, further aggravating the tight supply situation in the market, thus promoting the continuous upward trend of sulfuric acid prices.

Against the backdrop of a significant tightening of supply, inventories of acid companies are generally low and shipments are smooth. This "no pressure to ship" state, giving manufacturers a stronger price and price increase confidence.

Rigid support on Demand Side

In terms of demand, as the largest downstream of sulfuric acid, the operating rate of phosphate fertilizer industry has shown a steady decline since October. As of press release, the operating rates of monoammonium phosphate and diammonium phosphate industries have dropped to about 53.84 and 50.15 respectively, and the output has shrunk simultaneously. However, with the continuous rise of sulfur price, some phosphate fertilizer production enterprises have replaced sulfur with sulfuric acid, pushing up the demand for sulfuric acid outsourcing. Chemical industry, titanium dioxide, caprolactam and other industries in general, the maintenance of sulfuric acid just need to follow up.

Post-Market outlook: short-term continued upward trend.

On the whole, in the short term, the cost support is still clear. In addition, there are still some units planned to be overhauled in Jiangxi, Guangxi, Hubei and other places from November to December. The tight supply pattern is difficult to quickly alleviate, and the price of sulfuric acid is expected to continue to rise. However, it is important to be wary that as the price of sulfuric acid rises to a high level, downstream resistance will gradually heat up. In addition, it is expected that by January 2026, most of the maintenance will be completed, the market supply will gradually resume, superimposed on the Spring Festival before the acid plant is generally reduced demand, when the acid price may face correction pressure. It is recommended to pay close attention to the upstream raw material dynamics, the main acid plant maintenance plan and the continuous changes in downstream demand.

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