Spring ploughing has ended. How is the sulphuric acid market performing domestically and overseas?

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

By country, China exported sulphuric acid to 19 countries and regions in March. The volume of sulphuric acid exported to Chile still led by a wide margin, accounting for nearly half of the total. In addition, Saudi Arabia and Indonesia were also major export destinations for China's sulphuric acid, indicating a high concentration of China's sulphuric acid exports. According to SMM, the overall export price of sulphuric acid remained high in April, which will continue to sustain the export demand of domestic refineries. Moreover, end-use demand in the domestic sulphuric acid market weakened from mid-to-late April, with the spring planting season ending and the operating rate of downstream fertilizer enterprises declining. 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.

From the perspective of the domestic sulphuric acid market, market sentiment in April reversed from the previous period, marking the end of the traditional peak season, with sulphuric acid prices in many regions turning downward. In early April, the domestic sulphuric acid market began to show gradual divergence in performance across regions, with a reversal in the supply and demand structure in many areas and the impact of downstream phosphate fertiliser gradually entering the off-season. In addition, the sharp decline in sulphur prices eroded previous cost support, leading to a weakening market trend. Entering mid-to-late April, maintenance at the supply side gradually resumed, increasing market supply. Meanwhile, procurement volume of 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 sulphuric acid prices in the northern market, especially in the north-west and north-east regions, remained firm due to insufficient regional supply. SMM expects that the divergence pattern of "weak south, strong north" will further intensify after entering May.