Hubei Yihua Signs 1 Mt/a Phosphogypsum-to-Sulfuric Acid Project amid Sulfur Supply Crisis

Published: Jun 30, 2026 13:59

Save

On 22 June 2026, China Wuhuan Engineering, Tianjin Cement Industry Design & Research Institute, and Hubei Yihua Chuxing Ecology signed a contract for a 1 Mt/a phosphogypsum-to-sulfuric acid project. The facility will produce 400,000 t/a of industrial sulfuric acid and cementitious admixtures using third-generation low-carbon calcination technology.

Hubei Yihua Signs 1 Mt/a Phosphogypsum-to-Sulfuric Acid Project amid Sulfur Supply Crisis

The project is a direct response to the May 2026 sulfur geopolitical crisis, when shipping disruptions in the Strait of Hormuz exposed China’s heavy reliance on imported sulfur for wet-process phosphoric acid. Phosphate acid prices surged over 70% to above 11,000 yuan/t. Phosphogypsum-based acid production becomes economically viable when sulfur prices exceed 1,500 yuan/t, replacing 0.3–0.35 t of imported sulfur per tonne of acid. The process creates a closed-loop cycle of solid waste, sulfur resources, and calcium materials.

China’s phosphogypsum-to-acid industry has moved from pilot to cluster stage. Existing capacity is about 1.2 Mt/a of sulfuric acid, with more than 4 Mt/a under construction or planning, concentrated in Hubei, Guizhou, Yunnan, and Sichuan. Hubei accounts for over 65% of national projects. Yihua has four projects totalling 4 Mt/a processing capacity, while Guizhou Phosphorus Group operates the largest 1.4 Mt/a flagship plant.

The project carries triple value: it alleviates the environmental burden (China generates >80 Mt/a phosphogypsum with <40% utilisation), hedges sulfur import risks, and turns a former liability into a profitable resource. Over the next three years, capacity is expected to double, significantly reducing sulfur import dependence and strengthening the resilience of China’s phosphorus chemical industry.

Note: If you have any further details to add regarding the points mentioned in this article, or if you have any questions on the phosphorus chemical industry (phosphate rock, phosphoric acid, iron phosphate, lithium iron phosphate, etc.) and solid-state batteries, please feel free to contact:

Tel: 021-20707860 (or add WeChat: 13585549799) – Yang Chaoxing. Thank you!

Solid-state Battery

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

41 mins ago

Cobalt Products Quotations in the Doldrums; Refined Cobalt Has Dropped Over 20,000 Yuan in a Single Week; Cobalt Sulphate Quotations Have Fallen for Five Consecutive Days! [Weekly Review]

41 mins ago

1 hour ago

China’s imports of unwrought cobalt fell 6% month‑on‑month and exports dropped 38% month‑on‑month in July 2026.

In July 2026, China’s imports of unwrought cobalt stood at around 1,055 tonnes, down 6% month‑on‑month but up 83% year‑on‑year. By source country, the top three import origins for cobalt metal in July were Indonesia, Russia and Canada, with import volumes of 403 tonnes, 271 tonnes and 175 tonnes respectively. In terms of trade modes, goods under customs special supervision zones accounted for approximately 795 tonnes, representing about 75% of July imports. These supplies mainly flowed into bonded warehouses in Zhejiang and Shanghai. Only roughly 259 tonnes entered domestic consumption channels via general trade. Bonded warehouses show obvious “reservoir” characteristics, leading to a certain divergence between import figures and real domestic demand. For import prices, China’s average import price of unwrought cobalt reached USD 59,296 per tonne in July 2026, rising 13.53% month‑on‑month. Cumulative imports from January to July 2026 totalled 8,763 tonnes, surging 113% year‑on‑year. On the export side, China exported about 313 tonnes of unwrought cobalt in July 2026, falling 38% month‑on‑month and 68% year‑on‑year. By destination, the top three export markets were the Netherlands, the United States and Japan, with shipments of 83 tonnes, 71 tonnes and 49 tonnes respectively. Nearly 95% of monthly exports were goods under customs special supervision zones, dominated by re‑export flows among bonded areas. The average export price of unwrought cobalt stood at USD 56,505 per tonne in July 2026, down 5.16% month‑on‑month. Cumulative exports for January‑July 2026 amounted to 2,977 tonnes, dropping 76% year‑on‑year.

1 hour ago

China's imports of cobalt hydrometallurgical intermediates rose 48% month‑on‑month in July 2026.

In July 2026, China’s imports of cobalt hydrometallurgical intermediates stood at approximately 16,174 physical tonnes, up 48% month‑on‑month and 17% year‑on‑year. Of the total volume, imports from the Democratic Republic of the Congo reached around 15,970 physical tonnes, rising 48% month‑on‑month and 21% year‑on‑year. The average import price for cobalt hydrometallurgical intermediates in July 2026 was USD 17,915 per physical tonne, climbing 9.56% month‑on‑month. Around 10,046 physical tonnes of DRC‑sourced intermediates entered Zhejiang and Guangdong provinces via goods under customs special supervision zones, accounting for 62.9% of total imports. General‑trade imports totalled about 4,243 physical tonnes (26.6%), while processing with imported materials stood at roughly 1,681 physical tonnes (10.5%). In addition, China imported a combined 204 physical tonnes of intermediates from Russia and Zambia under general trade during the month.

1 hour ago