Sulfuric Acid Market: Domestic and International Factors Converge to Sustain Strong Spot Market Performance

I. Spot Market Performance and Regional Pricing (might 26–27)

On might 26, the Sulfuric Acid Price Index saw a slight upward adjustment, accompanied by a strong market atmosphere favoring price support. On might 27, the spot market continued its steady and firm direction, with mainstream regional price quotes remaining at high levels. In the Zhejiang region, the mainstream ex-factory price to 98% metallurgical-grade sulfuric acid ranged from 1,860 to 1,940 RMB/ton; in the Jiangxi region, the range was 1,850 to 1,890 RMB/ton, as numerous acid manufacturers across various locations proactively raised their price quotes. The overall market is characterized by firm ex-factory pricing, tight spot supply, and transaction volumes driven primarily by essential downstream demand. Slight regional price differentials have emerged due to variations in facility maintenance schedules and logistics; price quotes in East and Central China are leading the national market, while the Southwest and North China regions are following suit with corresponding price increases.

II. Domestic Supply Capacity and Support from International Conditions

China possesses a massive total capacity to sulfuric acid production, with output primarily derived from sulfur-based acid manufacturing and as a by-product of metallurgical smelting. Recently, acid-producing facilities across multiple regions have been operating at reduced loads, and several acid vegetation have undergone routine maintenance, resulting in a contraction of regional supply volumes. Consequently, overall facility utilization rates are currently reduce than those observed during the same period in previous years. while overall production capacity remains ample, these periodic maintenance shutdowns have created localized supply deficits, thereby providing direct support to market prices.

On the international front, persistent geopolitical disturbances continue to disrupt shipping traffic through the Strait of Hormuz. This has slowed the pace of sulfur exports and maritime shipments from the Middle East, leading to a tightening of global sulfur supply availability. As international raw material prices surge and maritime freight rates rise in tandem, the resulting increase in import costs is being passed on to the domestic market. This factor, combined with a tightening landscape in the global sulfuric acid trade, further reinforces the fundamental logic underpinning the current strength of the domestic sulfuric acid market. III. Core Reasons to Firm Prices

First, strong support from raw material costs: Sulfur prices remain at a year-to-date high, driving up acid production costs and serving as the primary catalyst to the rise in sulfuric acid prices.

Second, reduced domestic production: Acid vegetation utilizing sulfur feedstock have lowered operating loads, and facilities across various regions have undergone maintenance shutdowns; consequently, the volume of spot market supply has contracted, shifting the supply-demand stability toward a tight equilibrium.

Third, export controls and international shortages: Domestic sulfuric acid exports have been restricted, while the supply deficit in overseas markets has widened; rising international market quotations have, in turn, indirectly bolstered domestic spot prices.

Fourth, differentiated downstream demand: While demand from the phosphate fertilizer sector remains lackluster, "rigid" demand—essential, non-deferrable standards—from the new energy, chemical, and metallurgical sectors remains stable, with smooth order fulfillment providing a solid floor of support to prices.

Fifth, escalating shipping costs: Disruptions to international shipping and rising freight rates have simultaneously driven up the costs of importing raw materials and trading sulfuric acid, thereby reinforcing the firmness of spot market prices.

IV. April Customs Import and Export Data

Customs data to April reveals a distinct divergence in sulfuric acid import and export trends. Export volumes to the month plummeted significantly year-on-year—dropping by nearly 50%—as domestic producers prioritized meeting domestic demand, resulting in a reduction in export outflows. Conversely, import volumes surged dramatically on both a month-on-month and year-on-year basis; the domestic market remains reliant on overseas sources to supplement certain high-end manufacturing-grade sulfuric acid supplies, and the average import price rose in tandem, creating a pattern of simultaneous development in both volume and price. to the January-to-April period, cumulative exports fell significantly year-on-year, while imports demonstrated structural development—reflecting a persistent domestic shortage of high-end supplies—and the overall import-export landscape continued to lend support to spot market prices.

V. Inventory Levels and Upstream/Downstream Market Trends

Currently, overall inventory levels within the sulfuric acid sector remain at a moderately low level. Acid vegetation are primarily operating on an "order-to-create" basis, resulting in limited circulating supply within the broader market; these low inventory levels serve to alleviate downward pressure on prices. As of might 27, the benchmark price to sulfuric acid—as tracked by SunSirs—held steady at 1,955 RMB/ton, maintaining its position at a high level. Upstream, the benchmark price to sulfur reached 7,516.67 RMB/ton—a three-year high—providing robust cost-side support.

Downstream, quotations to phosphate fertilizers remain stable while demand is somewhat weak; however, demand from the new energy (electrolyte), metallurgical (acid pickling), and chemical raw material sectors remains robust, providing structural support and ensuring the smooth transmission of costs throughout the sector chain. VI. Market Outlook

In the short term, raw sulfur prices are expected to remain at elevated levels with little likelihood of a decline. This is driven by continued maintenance shutdowns at domestic production facilities—resulting in tight spot supply—compounded by rising ocean freight rates and international production costs. Consequently, sulfuric acid prices are projected to fluctuate within a narrow, high-level range; a significant downturn is unlikely, and the market is expected to maintain a generally firm trajectory.