Supply-demand pattern adjusted again in May, sulphuric acid prices stopped falling and rebounded in many regions [SMM Analysis]

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In May, the supply-demand pattern of the sulphuric acid market in multiple regions across China underwent another round of adjustments, with market prices experiencing a decline followed by a rebound. In early May, affected by the end of the spring planting season, sulphuric acid prices in many regions of China continued to pull back, particularly in the south China market where the decline was significant, while prices in the northern market remained relatively stable overall. In mid-May, the domestic sulphuric acid market continued to show mixed performance, mainly due to the continuous release of fertilizer export information and the gradual implementation of relevant policies, which led to a gradual rebound in downstream demand and the stabilization of sulphuric acid prices in the south after stopping their decline. After entering late May, prices in many regions across the country rose again.

Overall, currently, some domestic acid enterprises are expected to initiate maintenance plans, which will reduce market supply compared to the previous period. On the demand side, with the implementation of export policies in the downstream fertilizer market, market demand is expected to rebound. Additionally, the current export prices remain high, which will further support the domestic supply landscape in regions such as Shandong, Guangxi, and Anhui. Therefore, SMM believes that in the short term, there is still upside room for sulphuric acid prices in some domestic regions.

In terms of imports, China imported a total of 8,500 mt of sulphuric acid in April, down 4.25% MoM and up 6.72% YoY. In terms of exports, China exported a total of 54,800 mt of sulphuric acid in April, down 72.68% MoM and 67.02% YoY.