SunSirs: The Sulfuric Acid Market Operated at a High Level in June

Price trend

In June 2026, the domestic sulfuric acid market exhibited a trend characterized by high-level fluctuations, alternating gains and losses, resilient strengthening, and intensifying regional divergence. The overall price level shifted significantly upward compared to May, resulting in a net monthly gain; the market decisively shook off the previous pattern of weak, fluctuating performance and demonstrated markedly enhanced resistance to price declines.

Market analysis

Regarding costs, the key feature of June was the wide fluctuation in sulfur prices alongside the steady strengthening of auxiliary material costs; market pricing shifted from being anchored by costs to being driven primarily by supply and demand, with costs serving merely as a floor. Port sulfur prices surged to 11,600 RMB/ton in early June before retreating to 9,200 RMB/ton later in the month—a fluctuation of over 2,400 RMB/ton—yet with port inventories at multi-year lows, the potential for a sharp decline in raw material prices remained limited. Prices for sulfur concentrates rose slightly, continuing to support the cost of acid produced from ore. Industry profitability showed marked divergence: sulfur-based acid production generally faced losses due to cost-price inversion, whereas acid produced from ore and smelting off-gas maintained reasonable profit margins.

Supply Side: Maintenance-driven production cuts and tight supplies

June marks the peak season for industry-wide maintenance. Coupled with reduced operating rates among sulfuric acid producers—driven by financial losses—the national operating rate for sulfuric acid production has declined year-on-year, and overall spot inventories remain low. Major production units in Central and East China have shut down for maintenance, creating a temporary supply gap; meanwhile, the commissioning of new capacity has been delayed, meaning no additional supply will be released in the short term. Furthermore, sulfur supplies are being prioritized for the phosphate fertilizer market, leaving producers of chemical-grade acid facing raw material shortages and constrained operating rates. Consequently, market supply has contracted, and producers are strongly inclined to maintain price levels.

Demand Side: Traditional Demand Weakened, Supported by Essential Demand from the New Energy Sector

There is significant structural divergence in downstream demand. Traditional downstream sectors have entered the off-season; industries such as phosphate fertilizers, titanium dioxide, and caprolactam are experiencing low operating rates and financial losses, leading to strong resistance against high-priced sulfuric acid—resulting in a "purchase-as-needed" approach with no inventory stockpiling. The sole source of support comes from the new energy sector, where the iron phosphate and lithium iron phosphate industries maintain high operating rates and robust order books. Stable, essential procurement from this sector effectively offsets the decline in traditional demand, serving as the core support for high acid prices.

Market trends diverged significantly across regions in June: Central China led the gains, Southwest China saw a catch-up rally, South China showed mixed performance, and East and North China remained stable. In Central China, concentrated maintenance shutdowns, tight supplies, and robust demand from the new energy sector drove prices sharply upward. In the Southwest, low-priced inventories were cleared out, and with recovering demand for phosphate fertilizers and new energy applications, acid prices rose steadily to catch up with the broader market. South China saw widening price disparities within the region, with markets in Guangxi and Fujian trending stronger while parts of Guangdong remained relatively weak. In East China, cost support weakened due to falling sulfur prices, while North China strengthened slightly; overall price fluctuations in both regions remained limited.

Market outlook

According to SunSirs, the overall outlook for the sulfuric acid market in July is one of firm high-level pricing with a slight upward bias and continued regional divergence; no significant fluctuations are expected. On the supply side, ongoing plant maintenance and the delayed release of new capacity are keeping market supplies tight, while low sulfur inventory levels provide a cost floor, ensuring solid price support. On the demand side, the stocking of autumn fertilizers begins in the middle-to-late part of the month, driving a marginal recovery in traditional demand; combined with sustained high demand from the new energy sector (such as for lithium iron phosphate), overall demand support remains robust. In the short term, the market is expected to remain stable with an upward bias early in the month, with potential for localized price increases of 50-100 RMB/ton mid-month, while the pattern of regional price disparities persists.

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