Supply-demand pattern adjusted again in May, with sulphuric acid prices stopping falling and rebounding in many regions

In May, the supply-demand pattern of the domestic sulphuric acid market in many regions adjusted again, with market prices first declining and then rising. In the first half of May, affected by the end of the spring farming season, sulphuric acid prices in many regions of China continued to pull back, with a significant decline in the south China market in particular, 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 sulphuric acid prices in south China stopped falling and stabilized. After entering the last half of May, prices in many regions across the country rose again.

Overall, some domestic acid enterprises are expected to initiate maintenance plans, leading to a decrease in 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 Shandong, Guangxi, Anhui, and other regions. Therefore, SMM believes that in the short term, there is still upside room for sulphuric acid prices in some domestic regions.

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