In the week ended July 3, China's sulphuric acid market held up well overall, but regional divergence intensified further. The SMM China Copper Smelting Acid Index stood at 1,789 yuan/mt, up 38 yuan/mt WoW, an increase of 2.2%, marking its fourth consecutive weekly rise. The market featured regional maintenance on the supply side alongside divergent downstream demand, presenting an overall landscape of “firm cost support with mixed regional performance.”
Cost side, domestic sulphur prices continued to rise this week. The SMM Sulphur (EXW Shandong) price was reported at 9,000-9,300 yuan/mt, with an average of 9,150 yuan/mt, up approximately 950 yuan/mt from last Friday. The persistently rising sulphur prices provided strong support for the cost side of sulphuric acid. Kazakhstan suspended sulphur exports from June 27, and the extension of Russia’s sulphur export ban to the end of 2026 heightened expectations of tighter global sulphur supply, reinforcing cost support for sulphuric acid.
In terms of regional performance, prices showed mixed changes this week. Rising areas were concentrated in Inner Mongolia, Heilongjiang, Jilin, Guangxi, and Yunnan, among others. Fujian was the only region to see a notable decline week-over-week, while most regions saw prices hold steady or edge up.
North China, EXW prices in Inner Mongolia were raised by 140 yuan/mt to 1,430-1,700 yuan/mt, leading the increases; Heilongjiang raised prices sharply by 175 yuan/mt to 1,700-1,850 yuan/mt; Jilin raised prices by 200 yuan/mt to 1,800-1,900 yuan/mt, with enterprises reporting that downstream demand was mainly chemical-related and actual transactions took place within the 1,800-1,900 yuan/mt range; Liaoning raised prices by 50 yuan/mt to 1,650-1,750 yuan/mt; Shanxi raised prices by 60 yuan/mt to 1,700-1,800 yuan/mt. Enterprises in the Chifeng area reported mainstream quotations ranged from 1,550-1,600 yuan/mt for small accounts and 1,380-1,430 yuan/mt for large accounts, with no current inventory pressure and normal downstream demand.
East China and South-east China, EXW prices in Shandong edged up by 25 yuan/mt to 1,900-2,040 yuan/mt. Enterprises reported that although supply flowed in from Henan and Chifeng, regional supply remained relatively tight due to maintenance at some local smelters, while actual transactions were somewhat tepid. Anhui held steady at 1,830-1,880 yuan/mt. Jiangxi held steady at 1,900-2,000 yuan/mt, but enterprises reported changes in demand, as rising fluorine chemical costs reduced demand; prices were held firm for the time being this week. Fujian was the only region to see a notable decline week-over-week. EXW prices were lowered by 100 yuan/mt to 1,800-1,900 yuan/mt. Market sources linked Fujian’s price decrease to some enterprises’ efforts to increase shipments, which caused some disruption to sentiment in neighbouring markets.
South-west China and North-west China, EXW prices in Guangxi were raised by 65 yuan/mt to 1,780-1,900 yuan/mt. Enterprises indicated that copper smelter operating rates were low, providing continued price support. Yunnan raised prices by 80 yuan/mt to 1,590-1,650 yuan/mt, an increase mainly boosted by sulphur cost, with regional supply and demand remaining stable. Sichuan raised prices by 50 yuan/mt to 1,500-1,700 yuan/mt, with the possibility of further marginal increases thereafter. Gansu edged up by 25 yuan/mt to 1,750-1,910 yuan/mt; Qinghai held steady at 1,820-1,840 yuan/mt; Xinjiang held steady at 1,400-1,600 yuan/mt.
Central China and South China, Henan raised prices by 50 yuan/mt to 1,700-1,800 yuan/mt. Enterprises reported price changes were mainly based on local supply-demand conditions, with large-account pricing at 1,700 yuan/mt and small-account pricing at 1,800 yuan/mt. Hubei held steady at 1,600-1,700 yuan/mt; Hunan held steady at 1,650-1,850 yuan/mt.
On the international market, SMM Sulphuric Acid (CFR Indonesia) was quoted at $370-420/mt this week, averaging $395/mt, down $32.5/mt WoW. SMM Sulphuric Acid (FOB South Korea) was reported at $370-380/mt, averaging $375/mt, down $2.5/mt WoW. SMM Sulphur (CIF Indonesia) was reported at $1,100-1,200/mt, averaging $1,150/mt, flat WoW. On the African Copper Belt, SMM Sulphur (DAP DRC) and SMM Sulphur (DDP DRC) were reported at $1,800-1,850/mt and $2,100-2,300/mt respectively, while SMM Sulphuric Acid (EXW DRC) remained flat WoW. SMM Sulphuric Acid (EXW Zambia) was quoted at $380-420/mt this week, averaging $400/mt, up $100/mt WoW. A local pyrometallurgical smelter is about to undergo maintenance, and with expectations of tighter local acid supply, enterprises increased their sulphuric acid reserves, driving the price rise.
Looking ahead, China’s sulphuric acid prices are expected to continue to consolidate at highs in the short term. Cost support from sulphur remains solid, and smelter operating rates are unlikely to increase significantly due to ore-side constraints, meaning the tight supply-side situation will be difficult to change soon. However, factors such as the end of the phosphate fertiliser supply guarantee season and weak chemical demand will limit upside room for prices. Regional divergence is likely to persist: the price surge in the north-east may slow down after its catch-up rally, low-price areas like Yunnan still have room for catch-up gains, and the market chain reaction after Fujian’s price reduction warrants attention. Internationally, Kazakhstan’s sulphur export ban and the direction of Russia’s export policy, as well as the subsequent pace of sulphur release through the Strait of Hormuz, remain the core variables.
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