[SMM Flash] Domestic Copper Smelting Acid Prices Broadly Lower Recently

Published: Jul 20, 2026 11:40

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In the week ending July 17, China's sulphuric acid market broke the previous high-level stalemate, with prices broadly declining. The SMM China Copper Smelting Acid Index reported at 1,763 yuan/mt, down 21.5 yuan/mt WoW.

The core drivers behind this round of price decline are as follows:

First, previously shut-down units undergoing maintenance resumed production in a concentrated manner, releasing supply-side growth. Copper smelting units in Shandong, Henan and other regions that were under maintenance earlier have largely resumed operating at full capacity, and the supply of by-product acid rebounded notably. The previous "maintenance-driven price rally" logic that had supported the continuous price rise gradually played out and faded. As the supply tightness eased, downstream resistance to high-priced acid intensified, resulting in a general shift to pushing for lower prices and reducing procurement volumes. Smelters lacked the motivation to hold prices firm.

Second, phosphate fertiliser demand entered a seasonal off-season window. After the peak spring plowing preparation season from January to May ends, the autumn fertilizer demand cycle from June to December has not yet fully started, leaving the market currently in a traditional demand gap period. Operating rates at downstream phosphate fertiliser enterprises pulled back, the sulphuric acid procurement pace slowed down markedly, and rigid demand support weakened.

Third, the impact of low-priced cargoes flowing across regions triggered a chain of price cuts. After production resumptions and incremental output releases in major producing areas, inter-regional price spreads were gradually compressed. Low-priced cargoes radiated outward, dragging down neighboring markets and forming a regional knock-on price cut reaction, with the overall market transaction center moving down in tandem.

Overall, this round of smelting acid price cuts represents a reasonable pullback under the dual impact of supply recovery and the demand off-season. Going forward, attention should be paid to the stability of copper smelter operations and the pace of autumn fertilizer procurement, which will determine the degree of support for acid prices.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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