SunSirs: China's Sulfur Prices Rise Overall in January

International Sulfur Market Overview:

In January 2026, international sulfur prices remained firm at elevated levels.

Early in the month, post-holiday spot sales recovery proved sluggish. Russia's sulfur export ban is reportedly set to extend through the first quarter; Kazakhstan also saw sulfur output slightly decline from December due to disruptions in crude oil production and exports. In the Middle East, both Qatar and Saudi Arabia reduced spot supply due to loading delays. However, most buyers adopted a cautious stance toward current prices, purchasing only the minimum required volume on a “buy as needed” basis to minimize risks from current spot prices. Global spot sulfur transactions remained relatively sluggish.

In mid-March, the market awaited directional cues, with the global sulfur market remaining stable. CIS exports remained persistently low in January-February; partial delays occurred in Middle Eastern loading schedules; escalating protests in Iran, coupled with ongoing internet disruptions, halted new transactions at Iranian ports; yet divergent demand patterns stabilized global sulfur prices. First, relatively high prices dampened import demand in China. Nevertheless, Huayou Cobalt's announcement of large-scale sulfur tenders for March and subsequent deliveries was interpreted by the market as providing key guidance for sulfur price movements in February and March.

In late March, demand growth led by the metals sector kept sulfur prices firm. Indonesian nickel producers' sulfur purchases from the Middle East and other regions maintained stable-to-firm market pricing. However, some sellers' offers above $560/ton (cost plus freight) were rejected by buyers, indicating reluctance to commit to shipments beyond immediate needs at current price levels. Chinese buyers continued to purchase on an as-needed basis, while trading in India and Brazil remained subdued, with no immediate import demand.

Overall, despite a temporary slowdown in spot market circulation, the international sulfur market maintained its firm tone due to ongoing global supply constraints.

2. Domestic Sulfur Market Overview:

In January 2026, port sulfur prices rose initially before declining, with an overall upward trend. By January 30, granular sulfur at Zhenjiang Port was priced at CNY 4,180/ton, up CNY 180/ton month-on-month, representing a 4.50% increase.

During the first half of the month, port sulfur prices surged significantly. Middle East sulfur official prices were successively announced at FOB $516-520/ton, up $21-25/ton month-on-month. Coupled with plans by some Indonesian buyers to re-enter the international market, the strong US dollar market spurred traders to pursue purchases. Holders hoarded inventory and were reluctant to sell, Port sulfur prices rose. Subsequently, Formosa Plastics' sulfur sales tender price was set at USD 540/ton FOB, while a domestic refinery raised its sulfur sales tender price consecutively, providing positive stimulus to the market and driving port sulfur prices higher.

In late January, port sulfur prices corrected from elevated levels. Although rumors circulated about CFR prices reaching $545/ton in southern China and Indonesian tender offers reportedly remained firm, these failed to stimulate the spot market. Amid weakening trading sentiment, potential buyers repeatedly tested lower prices, prompting some suppliers to adjust their offerings. Consequently, port sulfur prices retreated from their highs.

In January 2026, the average domestic sulfur market price continued its broad upward trend.

As of January 30, the average domestic solid sulfur price stood at CNY 4,126/ton, up CNY 459/ton month-on-month, representing a 12.51% increase. The average domestic liquid sulfur price reached CNY 4,099/ton, rising CNY 477/ton month-on-month, a 13.17% increase.

In January 2026, domestic sulfur market prices demonstrated an overall upward trend.

This month, international sulfur prices remained firm at elevated levels. Limited import arrivals, coupled with sustained declines in domestic inventories, were further driven by robust upward momentum in port sulfur prices and active downstream demand. Consequently, major domestic refineries simultaneously raised their quotations significantly, with increases ranging from 100 to CNY720 per ton.

3. Analysis of China's Sulfur Production, Imports, and Port Inventories:

In January 2026, domestic sulfur production reached 1.0199 million tons, decreasing by 3,400 tons month-on-month, a decline of 0.33%.

This month, Shanghai Petrochemical and Shenchi Chemical underwent maintenance shutdowns, while Sinochem Quanzhou remained temporarily offline. Production rates decreased at Luoyang Petrochemical, Yanshan Petrochemical, and Dongming Petrochemical, while Yangzi Petrochemical, Jincheng Petrochemical, and Guangzhou Petrochemical operated at elevated capacities. Yunnan Petrochemical resumed production, resulting in a slight overall decline in domestic sulfur output.

In December 2025, China imported 422,400 tons of sulfur, down 13.32% month-on-month and 44.42% year-on-year. Cumulative sulfur imports from January to December reached 9.6084 million tons, a year-on-year decrease of 3.40%.

In January 2026, sulfur arrivals remained limited, leading to substantial inventory drawdowns at ports.

As of January 30, port sulfur inventories stood at 1.8412 million tons, down 143,600 tons (7.23%) from 1.9848 million tons on December 31.

4. Related Products:

In January 2026, average prices for sulfur-related downstream products mostly increased month-on-month.

Specifically, sulfuric acid, monoammonium phosphate, diammonium phosphate, and titanium dioxide saw rising market averages, while caprolactam experienced a decline.

In January 2026, capacity utilization rates across the sulfur industry chain generally rose month-on-month.

Specifically: - Monoammonium phosphate industry capacity utilization: 60.99%, up 4.51% month-on-month - Titanium dioxide industry capacity utilization: 75.57%, up 2.09% month-on-month - Caprolactam industry capacity utilization: 75.57%, up 2.09% month-on-month The sulfuric acid industry saw a capacity utilization rate of 66.67%, down 0.54% month-on-month; the diammonium phosphate industry recorded a capacity utilization rate of 51.81%, down 0.07% month-on-month.

5. Market Outlook:

The international sulfur market is expected to remain firm, with relatively limited import arrivals and potential for continued port inventory declines, providing support to the domestic spot market. However, detailed implementation rules for domestic supply guarantee policies are being rolled out, and related measures will alleviate production cost pressures for fertilizer enterprises. Coupled with the approaching Spring Festival holiday, multiple market factors are intertwined. It is anticipated that domestic sulfur market prices will primarily fluctuate at elevated levels in the short term.

Key Focus Areas: (1) Changes in the international supply chain; (2) Domestic downstream product stockpiling pace; (3) Domestic facility and port inventory levels.

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