Spring Plowing Ends: How Are the Domestic and Overseas Sulphuric Acid Markets Performing? [[SMM Analysis]]

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       According to data from the General Administration of Customs, China's sulphuric acid exports in March 2025 reached 325,000 mt, down 20.06% MoM and up 62.17% YoY. From January to March, China's cumulative sulphuric acid exports totaled 1.053 million mt, representing a cumulative YoY increase of 53.75%.

       By country, China exported sulphuric acid to 19 countries and regions in March. Chile remained the top destination, accounting for nearly half of the total. Saudi Arabia and Indonesia were also major export destinations, indicating a high concentration of China's sulphuric acid exports. According to SMM, sulphuric acid export prices remained high in April, which will continue to drive domestic smelters' export demand. Additionally, end-use demand in the domestic sulphuric acid market weakened from mid-to-late April as spring planting ended, leading to lower operating rates at downstream fertiliser enterprises. The weakening domestic demand will further encourage smelting acid enterprises to expand into the export market. Therefore, SMM expects China's sulphuric acid exports to increase MoM in April.

       Data source: General Administration of Customs

       Domestically, the market sentiment for sulphuric acid in China reversed from previous levels in April, marking the end of the traditional peak season, with prices in many regions turning downward. In early April, regional performance in the domestic sulphuric acid market began to diverge, with supply and demand structures reversing in many areas amid the gradual onset of the off-season for downstream phosphate fertiliser. Additionally, the sharp decline in sulphur prices eroded previous cost support, leading to a weaker market trend. From mid-to-late April, maintenance at the supply side gradually resumed, increasing market supply. Meanwhile, procurement volumes for downstream phosphate fertiliser continued to shrink, further weakening demand-side support. Affected by both supply and demand factors, several copper smelters in east and south China lowered their smelting acid prices, while prices in the northern market, particularly in north-west and north-east China, remained firm due to insufficient regional supply. SMM expects the "weak south, strong north" divergence to intensify further after entering May.