SunSirs: Sulfuric Acid Prices Strengthened in May, with the Market Trading at Elevated Levels

Price trend

In May 2026, the domestic sulfuric acid market continued its upward trajectory, with prices steadily climbing to trade at the highest levels seen so far this year. By the end of May, mainstream transaction prices for 98% concentrated sulfuric acid nationwide were concentrated within the range of 1,800–2,100 RMB/ton; the average monthly price continued its rise, reaching a new high for this specific period over the last three years. Although the downstream phosphate fertilizer sector has entered its traditional off-season for demand, the market remains fundamentally bullish—more prone to rising than falling—bolstered by the dual support of surging raw material costs and tightening market supply. Consequently, a clear pattern of unilateral upward movement has been firmly established.

First, raw material prices have skyrocketed, providing strong cost-side support.

Sulfur serves as the primary raw material for sulfuric acid production; this month, spot prices for sulfur at ports continued their rapid surge, stabilizing above the 7,000 RMB/ton mark by month-end. Consequently, the pressure from raw material costs remains persistently high. Prices for pyrite—another key raw material—have risen in tandem. With mainstream sulfuric acid producers continuing to incur losses, acid plants demonstrate a strong resolve to uphold prices, leaving no room for reductions; this factor provides fundamental support for the continued upward trajectory of sulfuric acid prices.

Secondly, concentrated plant maintenance has led to a tightening of market supply.

During May and June, large-scale acid production facilities across numerous domestic regions underwent concentrated maintenance, resulting in a significant reduction in supply within the key production hubs of East, Central, and Northwest China. Although sulfuric acid exports were halted starting in May—causing a portion of product originally destined for overseas markets to be diverted back domestically—the volume of this returned supply fell far short of offsetting the supply deficit caused by the maintenance shutdowns. Consequently, the industry as a whole maintained a state of tight supply-demand balance; this situation, compounded by generally low overall operating rates within the sector, further bolstered the upward trend in market prices.

Finally, robust demand from the new energy sector offsets the negative impact of the off-season.

Following the conclusion of spring planting, demand for phosphate fertilizers has declined sharply, as downstream sectors within the traditional fertilizer industry weigh on market sentiment. However, robust demand from the lithium iron phosphate (LFP) segment of the new energy sector remains at elevated levels; meanwhile, downstream fine chemical industries—such as titanium dioxide and fluorochemicals—continue to maintain steady restocking activities. These factors effectively offset the negative impact of the seasonal downturn in fertilizer demand, thereby underpinning the stability of the fundamental market conditions for sulfuric acid.

Situation in Major Domestic Regions:

East China, Central China, and Northeast China: Concentrated plant maintenance has led to tight supply; coupled with cost-side support, regional prices continue to trend upward, making these markets the most robust.

Southwest China and parts of Northwest China: Demand for phosphate fertilizers remains sluggish, leading to a slight accumulation of manufacturer inventories; consequently, some acid producers have marginally lowered prices to reduce stock, resulting in a generally weak pricing trend.

South China: The market is polarized; in Guangxi, prices are under pressure due to an influx of lower-priced supplies from other provinces, whereas in Guangdong, prices remain at elevated levels, bolstered by ongoing plant maintenance.

Market Outlook:

According to SunSirs, the sulfuric acid market in the short term—specifically in June—is expected to maintain a pattern of high, firm pricing accompanied by regional divergence. The tight supply of raw sulfur is unlikely to ease rapidly; furthermore, with facilities scheduled for maintenance next month not yet resuming concentrated production, a supply deficit is expected to persist. On the downstream side, the market remains characterized by the off-season for phosphate fertilizers, with essential demand from the new energy sector serving as a floor to underpin overall demand. Overall, sulfuric acid prices still have room for upward movement in the short term, though significant price surges are unlikely in regions with weaker demand, such as the Southwest. In the medium to long term, market participants should closely monitor the volume of imported sulfur arriving at ports and the progress of production restarts at domestic facilities; these two key variables will determine the market's inflection point.

In May, the sulfuric acid market bucked broader trends to strengthen, driven primarily by high raw material costs and tightening supplies. Essential demand from the downstream new energy sector served to offset weaknesses on the demand side. At this stage, production costs remain the dominant factor driving market trends, making it unlikely that the current trajectory of high-level market operations will be reversed in the short term.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.