As of the week ended August 7, China’s sulphuric acid market continued to drift lower, with prices moving lower in most regions. The SMM China Copper Smelting Acid Index was reported at 1,703 yuan/mt, down 19.5 yuan/mt WoW, with the decline matching last week’s level and marking the fifth consecutive weekly pullback. This week, Northeast China and Inner Mongolia saw concentrated price increases due to supply tightness, but actual declines in most areas of central China, east China, and south-west China still ranged from 50 to 190 yuan/mt, keeping the overall market on a downward trajectory.
On August 5, the official August China sulphuric acid guidance price was released at 1,555 yuan/mt, down 19 yuan/mt from 1,574 yuan/mt in July. Meanwhile, the formula was adjusted: the calculation changed from “latest copper concentrate TCs” to “average copper concentrate TCs over the past three months,” using the SMM Imported Copper Concentrate Index to smooth the short-term impact of extreme TC fluctuations on the guidance price. The downward turn in the guidance price further reinforced market expectations of weakness. Fertilizer plants showed increased resistance to high sulphuric acid prices, and their procurement pace continued to slow.
Cost side, China’s sulphur prices consolidated this week. SMM sulphur (EXW Shandong) was quoted at 8,880-9,400 yuan/mt on August 7, averaging 9,140 yuan/mt, up about 40 yuan/mt WoW, providing bottom support for sulphuric acid. However, weakening demand dominated the price trend.
Regionally, most areas continued to see price declines this week, with only Northeast China and Inner Mongolia posting gains due to regional supply tightness.
Central China: Hunan EXW prices were cut by 100 yuan/mt to 1,550-1,630 yuan/mt, leading the declines and sitting at the low end of the national range. Hubei Daye Nonferrous implemented differentiated price adjustments this week: on August 5, truck shipments within the province were lowered by 80 yuan/mt while those to other provinces were cut by 50 yuan/mt; on August 6, waterway shipments were reduced by 190 yuan/mt. On August 10, Hongsheng Copper resumed production, and the market expects that after the release of incremental supply, prices may face further pressure.
East China: Shandong saw actual transaction center around 1,600 yuan/mt, and Yanggu Xiangguang again lowered its offer to 1,620 yuan/mt this week. Jiangxi Copper Corporation cut prices by 30 yuan/mt for Hunan and Guizhou destinations on August 5. Prices in Fujian and Anhui held steady.
South-west China: Sichuan’s price range narrowed to 1,420-1,640 yuan/mt. Hongda’s procurement price was cut by 50 yuan/mt this week, Liangshan Mining’s offer fell to 1,420 yuan/mt, and Chengtun Zinc & Germanium lowered its price by 80 yuan/mt. Yunnan currently quoted at 1,250-1,460 yuan/mt, with major smelters reducing prices by 100-130 yuan/mt. Guangxi’s current offers stabilized at 1,730-1,850 yuan/mt. Guangxi Jinchuan lowered prices by 20-30 yuan/mt on a case-by-case basis. Guangxi supplies are gradually flowing to Guizhou, marginally improving regional supply-demand conditions.
Northeast China and Inner Mongolia: Collective increases at the beginning of the month. Sulphuric acid prices in Chifeng rose by 80 yuan/mt, reflecting regional supply tightening supporting prices. Jilin Zijin raised prices by 50-80 yuan/mt. The Heilongjiang affiliate of Zijin raised its offer price by 50 yuan/mt to 1,850 yuan/mt. Huludao Hongyue's August quotes stood at 1,750 yuan/mt (93% acid) and 1,800 yuan/mt (98% acid).
North-west China and North China: Zhongtiaoshan (North Copper) lowered prices by 70 yuan/mt to 1,660-1,680 yuan/mt. Qinghai Copper held steady but faced shipment pressure. Xinjiang and Gansu were relatively stable, with no price adjustments observed.
Supply and demand side, supply sideproduction resumptions from previous maintenance effectively released all growth, with Hongsheng Copper's 10 August production resumption being the most significant near-term source of incremental supply. Demand side, the phosphate fertiliser off-season coincided with weakening operating rates in titanium dioxide and fluorine chemicals. Fertiliser demand, originally expected to pick up around late July to early August, still showed no clear downstream procurement signs. At the current price level, enterprises lacked further willingness to cut prices, but demand recovery signals had yet to emerge.
International markets, SMM sulphuric acid (CFR Indonesia) was quoted at $320-350/mt, averaging $335/mt, flat MoM; SMM sulphuric acid (FOB South Korea) was quoted at $280-350/mt, averaging $315/mt, down $30/mt MoM. SMM sulphuric acid (EXW DRC) was quoted at $910-960/mt, averaging $935/mt, up $10/mt MoM; SMM sulphuric acid (EXW Zambia) was quoted at $380-420/mt, averaging $400/mt, flat MoM. SMM sulphur (CIF Indonesia) was quoted at $1,050-1,150/mt, averaging $1,100/mt, down $50/mt MoM.
Looking ahead, China’s sulphuric acid prices are expected to consolidate at lows in the short term. The off-season for demand, coupled with incremental supply from Hongsheng Copper’s production resumption, lacks a catalyst for a price rebound. The August guidance price, lowered to 1,555 yuan/mt, further reinforced the market’s weakening expectations. Attention now turns to whether the autumn fertiliser restocking in late August can start as scheduled.
Key data this week:
- SMM China copper smelting acid index: 1,703 yuan/mt, down 19.5 yuan/mt MoM.
- August sulphuric acid guidance price: 1,555 yuan/mt (down 19 yuan/mt from July).
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