In the week ended August 28, China’s sulphuric acid market remained in the doldrums. The SMM China Copper Smelting Acid Index came in at 1,583.5 yuan/mt, down 12 yuan/mt from last Friday (1,595.5 yuan/mt). The decline narrowed markedly from last week (-35.5 yuan/mt), but the index has pulled back for eight consecutive weeks. Behind the narrowing decline, actual transaction prices in the market diverged significantly: on the one hand, low-end prices in Sichuan and other areas continued to edge lower; on the other hand, shipments in the Shandong market improved marginally and traders’ purchase willingness strengthened, with expectations that “prices may have neared the bottom” beginning to take shape. It should be noted that the quality of this round of downstream “recovery” remains questionable—much of it reflected an inter-regional rebalancing driven by the outflow of low-priced cargoes from Shandong to Jiangsu, Henan and other areas. Coupled with a rebound in operating rates in the chemical industry, the extent of a genuine recovery in demand still needs to be verified.
East China:
In Shandong, EXW offers were 1,440-1,500 yuan/mt, with the low end raised by 40 yuan/mt WoW, but actual transactions were seen across 1,400-1,600 yuan/mt, with the center around 1,500 yuan/mt, reflecting disorderly pricing. In terms of marginal changes, shipments during the week returned to normal. The lowest price for outbound shipments from enterprises had previously dipped to 1,150 yuan/mt, while recent offers rebounded to around 1,450 yuan/mt. Meanwhile, earlier load reductions implemented due to weak downstream fertiliser demand have eased. At the same time, traders’ purchase willingness increased notably, possibly indicating that a market consensus on a price bottom is forming.
In Anhui, EXW prices were 1,455-1,505 yuan/mt, with offers flat MoM. Recent price adjustments by regional smelters were mainly affected by weak demand and the impact of low-priced cargoes from central China (an offer of 1,455-1,530 yuan/mt from a large copper smelter in Hubei), with inter-regional price spreads continuing to narrow.
In Fujian, EXW prices were 1,580-1,640 yuan/mt, flat MoM. In Jiangxi, EXW prices were 1,590-1,740 yuan/mt, flat MoM; prices were unchanged and production loads were not reduced. Local smelters reported that demand in Jiangxi was not the main issue; prices were capped more by drag from surrounding low-priced regions. Wait-and-see sentiment was strong as the market awaited fertiliser producers to start up, with a focus on tracking price trends in Shandong and central China.
South-west China:
In Sichuan, EXW prices were 1,340-1,450 yuan/mt, with the high end down 150 yuan/mt WoW. Exports of acid sources were difficult, and supply and demand fell into a vicious cycle.
In Yunnan, EXW prices were 1,270-1,370 yuan/mt, with the offer center around 1,320-1,370 yuan/mt. In-province demand was basically stable with relatively small incremental growth, and some cargoes were exported. In central Yunnan, EXW prices were around 1,310 yuan/mt. Some large smelters in the province raised offers by 20-30 yuan/mt, and the market saw a tentative pullback.
In Guangxi, offers were basically stable with no notable market changes, mainly executing earlier long-term contract. Local enterprises closely monitored Yunnan’s price trend, concerned about the spillover impact of a further sharp decline.
Central China:
A plant in Hubei quoted around 1,455 yuan/mt for water transport and 1,455-1,530 yuan/mt for road transport, basically stable during the week. Production was unaffected, but downstream showed no clear signs of easing; the market mainly pinned hopes on fertiliser demand, and several major downstream producers had yet to take action.
In Henan, EXW prices were 1,450-1,500 yuan/mt, down 50 yuan/mt from last week (1,500-1,550 yuan/mt), mainly due to the influx of low-priced cargoes from Shandong. On the supply side, a contraction variable emerged: a large regional smelter began maintenance on its largest production line on August 20 for about 35 days, which is expected to affect sulphuric acid production by about 50,000 mt.
In Hunan, EXW prices were 1,500-1,550 yuan/mt, down 50-80 yuan/mt from last week (1,550-1,630 yuan/mt). The continued decline in sulphuric acid prices has begun to squeeze smelting profits, and local enterprises may reduce loads. The market awaited a potential boost from chemical demand and watched whether stockpiling could start in October.
Northwest and North China:
In Shanxi, EXW prices were 1,380-1,420 yuan/mt, down 60-70 yuan/mt from last week (1,450-1,480 yuan/mt). Actual offers from some regional enterprises still stayed around 1,400 yuan/mt.
In Gansu, EXW offers were 1,700-1,910 yuan/mt, flat MoM and staying at the national high, with a supply-demand balance in the region. A few small plants in southern Gansu made slight cuts due to the impact of low prices in Sichuan, but with limited production, the impact was relatively small. A large copper smelter in Qinghai lowered its offer by 100 yuan/mt from August 26 to around 1,630 yuan/mt. In Xinjiang, offers were around 1,500 yuan/mt, and enterprises faced no inventory pressure.
Northeast China and Inner Mongolia:
In the Chifeng area of Inner Mongolia, prices were unchanged during the month and the regional market ran steadily. In Liaoning, smelting acid offers were in the 1,580-1,800 yuan/mt range. A large smelter in Jilin kept its external distribution offers at a high level (around 2,400 yuan/mt, with local transactions reaching 2,100 yuan/mt), mainly covering distribution across Heilongjiang, Jilin and Liaoning. In Heilongjiang, offers were temporarily stable, but the market expected a 50-100 yuan/mt cut next month.
International Market: Sulphuric acid prices showed mixed performance this week. Buyers’ push for lower prices in Indonesia, the main consumption market, drove a pullback in Asian market prices. In the week ended August 28,
- SMM sulphuric acid CFR Indonesia: $305-325/mt, average $315/mt, down $20/mt from last week’s average of $335/mt. Buyer push for lower prices was evident in Indonesia.
- SMM sulphuric acid FOB South Korea: $300-320/mt, average $310/mt, down $5/mt from last week’s average of $315/mt. Tight regional supply limited the decline.
- SMM sulphuric acid EXW DRC: $910-960/mt, average $935/mt, flat MoM. The local supply gap persisted, keeping prices at a global high.
- SMM sulphuric acid EXW Zambia: $380-420/mt, average $400/mt, flat MoM.
Sulphur: This week, the sulphur market saw a sharp pullback from elevated levels, marking the biggest marginal change across the industry chain this week.SMM sulphur EXW Shandong mainstream transaction prices were 6,900-7,900 yuan/mt, average 7,400 yuan/mt, plunging 1,553.5 yuan/mt from last week (8,407-9,500 yuan/mt, average 8,953.5 yuan/mt). The weekly drop was about 17.3%, with the high end down 1,600 yuan/mt. Since 2026, sulphur prices had once surged by as much as 454% in cumulative gains (around 1,580 yuan/mt in early 2025, with the July average once reaching 8,754 yuan/mt). Persistent losses had forced multiple phosphate fertiliser producers in Hubei to halt production. This week’s sharp fall from highs indicated profit-taking in the trading segment and a concentrated release of downstream resistance to high-priced resources, with signs of easing cost pressure along the sulphur–sulphuric acid–phosphate fertiliser chain.
Internationally,SMM sulphur CIF Indonesia was $1,000-1,100/mt, average $1,050/mt, down $25/mt from last week’s average of $1,075/mt, as the international sulphur market weakened in tandem.
Looking ahead, the weak pattern in the sulphuric acid market is expected to be hard to change in the short term, with focus on fertiliser production pace and the implementation of the export policy window: policies related to phosphate fertiliser exports are set to expire on August 31, and the policy direction will directly affect Q4 export demand and raw material acid procurement. The phosphate fertiliser industry’s gross margin remained deeply in losses, and whether stockpiling can start in October is the biggest demand-side watchpoint.
![Positive Factors Begin to Emerge, Market Follow-up Expectations Improve [SMM Titanium Spot Express]](https://imgqn.smm.cn/usercenter/NPpAM20251217171723.jpeg)
![The titanium dioxide market is in the doldrums, whether enterprise price adjustments can boost sentiment remains to be seen [SMM Titanium Spot Flash]](https://imgqn.smm.cn/usercenter/yunIW20251217171723.jpeg)
