During the week ending July 10, China's sulphuric acid market stayed high overall, but the upward momentum slowed significantly WoW, and regional divergence further intensified. The SMM China Copper Smelting Acid Index was reported at 1,784.5 yuan/mt, down 4.5 yuan/mt WoW, ending its streak of gains and displaying characteristics of consolidating at highs. Downstream purchase willingness was generally weak, with persistent resistance to high prices. On the cost side, however, sulphur prices stabilized and rebounded from lows, providing bottom support to sulphuric acid prices. The market entered a stalemate phase characterized by "resistance above and support below."
Cost side, China's sulphur prices fell first and then rose this week. Early in the week, prices continued their downward correction, rebounding from lows starting mid-week. SMM Sulphur (EXW Shandong) was reported at 8,607-9,250 yuan/mt on July 10, with an average of 8,928.5 yuan/mt, down approximately 221.5 yuan/mt from last Friday, but it rebounded 125 yuan/mt from the intra-week low. Port inventories of sulphur remained low at around 710,000 mt, holding at a nearly ten-year low, which provided bottom support to sulphur prices. The stabilization and rebound on the cost side lent support to sulphuric acid prices, but downstream acceptance of high prices was limited, hindering cost pass-through.
Regional performance, prices showed mixed performance this week, with gains concentrated in Yunnan and Sichuan, while Jiangxi saw a significant decline, and most regions held steady.
Yunnan, ex-works prices were raised by 50 yuan/mt to 1,640-1,700 yuan/mt. Enterprises reported that the price level was relatively low, and there remained momentum for catch-up gains;Sichuan, raised by 50 yuan/mt to 1,580-1,720 yuan/mt. Enterprises reported that plant maintenance caused a supply shortfall, keeping prices firm;Liangshan Mining raised by 80 yuan/mt to 1,580 yuan/mt this week.Jiangxi, became a region with prominent declines this week, with ex-works prices lowered by 130 yuan/mt to 1,800-1,840 yuan/mt. Enterprises reported that downstream chemical demand was weak; after a drop of 50 yuan/mt last week and a further 80 yuan/mt this week, the cumulative decline was significant.Shaanxi, Hanzhong Zinc Industry Co., Ltd. maintained its ex-works price at 1,720-1,735 yuan/mt, with supply and demand basically stable.
Shandong, held steady at 1,900-2,040 yuan/mt. Enterprises reported that actual transaction prices were around 1,900-2,000 yuan/mt, but the low-priced supply of 1,450 yuan/mt from Yingkou Shenghai Chemical caused some disturbance to market sentiment, and clients had a price comparison mentality.Anhui, held steady at 1,830-1,880 yuan/mt, with supply and demand relatively balanced.Fujian, held steady at 1,800-1,900 yuan/mt;Guangxi, held steady at 1,780-1,900 yuan/mt, with regional supply and demand stable. In Hubei, prices remained stable at 1,600-1,700 yuan/mt, in Hunan, prices remained stable at 1,650-1,850 yuan/mt, and in Henan, prices remained stable at 1,700-1,800 yuan/mt. Enterprises reported undersupply of 105% acid, with prices at the 2,000 yuan/mt level, mainly used in the production of hydrofluoric acid, aluminum fluoride, and caprolactam.
In north-east China, prices remained stable. Enterprises in the Chifeng area reported that the uptrend was blocked, with some cargo able to flow into the Shandong market, believing that the regional price spread will eventually tend towards balance. In Inner Mongolia, prices remained stable at 1,430-1,700 yuan/mt, in Liaoning, prices remained stable at 1,650-1,750 yuan/mt, in Jilin, prices remained stable at 1,800-1,900 yuan/mt, and in Heilongjiang, prices remained stable at 1,700-1,850 yuan/mt.
In north-west China, prices in Gansu remained stable at 1,750-1,910 yuan/mt, in Qinghai, prices remained stable at 1,820-1,840 yuan/mt, and in Xinjiang, prices remained stable at 1,400-1,600 yuan/mt.
In the international market, SMM sulphuric acid (CFR Indonesia) was assessed at $310-380/mt, with an average price of $345/mt, down $50/mt WoW, mainly due to the gradual restoration of Middle Eastern cargo flows after the resumption of navigation through the Strait of Hormuz, coupled with increased wait-and-see sentiment in downstream procurement. SMM sulphuric acid (FOB South Korea) was assessed at $360-370/mt, with an average price of $365/mt, down $10/mt WoW. SMM sulphuric acid (EXW Zambia) was assessed at $380-420/mt, with an average price of $400/mt, up $100/mt WoW, reflecting tight sulphuric acid supply in the African copper strip. SMM sulphur (CIF Indonesia) was assessed at $1,100-1,200/mt, with an average price of $1,150/mt, flat WoW. In the African copper belt, SMM sulphur (DAP DRC) was assessed at $1,800-1,850/mt, and SMM sulphur (DDP DRC) was assessed at $2,100-2,300/mt, both flat WoW.
Looking ahead, domestic sulphuric acid prices in China are expected to continue to consolidate at highs in the short term. Stabilizing and rebounding sulphur costs provide support for acid prices, but downstream sectors, including phosphate fertiliser and chemicals, are showing increased resistance to high prices, slowing procurement pace. Some enterprises still hold optimistic expectations for a long-term uptrend, but high-priced transaction volumes are limited in the short term, casting doubt on the sustainability of price increases. Regional divergence is likely to persist: low-price areas like Yunnan still have room to play catch-up, areas with weak demand like Jiangxi see prices under pressure, while the rise in high-price areas such as Shandong and Fujian may slow down further. Internationally, the pace of navigation resumption through the Strait of Hormuz and actual port arrivals of Middle Eastern cargoes remain key variables.
Summary of this week's core data:
- SMM China Copper Smelting Acid Index: 1,784.5 yuan/mt, down slightly by 4.5 yuan/mt WoW
- SMM Sulphur (EXW Shandong) weekly average price: 8,928.5 yuan/mt (Jul 10), down approximately 221.5 yuan/mt from last Friday
- Shandong sulphuric acid: 1,900-2,040 yuan/mt (flat WoW)
- Yunnan sulphuric acid: 1,640-1,700 yuan/mt (+50)
- Sichuan sulphuric acid: 1,580-1,720 yuan/mt (+50)
- Jiangxi sulphuric acid: 1,800-1,840 yuan/mt (-130)
- National sulphur port inventory: approximately 710,000 mt, at a decade low
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