BEIJING, Jan. 21 -- The factory price of concentrated sulfuric acid in China is expected to reach a new high after the Chinese New Year after increasing to RMB 450 per ton recently from RMB 150 per ton in October 2009, sources reported.

The price surge mainly resulted from the rising cost and growing demand, said industry analysts, adding that the demand may grow significantly after the Spring Festival when the farmers started plant crops.

Reportedly, 75% to 80% of sulfuric acid is used in the production of fertilizers in China.

Statistics show that China's phosphate fertilizer capacity is 20 million tons at present.