SunSirs: The Overall Price Level of the Sulfuric Acid Market Remained Stable but Edged Slightly Lower in July

In July, the domestic sulfuric acid market remained generally stable, characterized by limited price fluctuations and a moderate tug-of-war between bullish and bearish forces; no significant surges or slumps occurred. The market was defined primarily by localized, minor adjustments and regional divergence. Cost support was offset by lackluster essential demand from downstream sectors, resulting in a relatively balanced supply-demand dynamic and steady, orderly overall market performance.

In terms of pricing, the overall market level for sulfuric acid saw a slight downward shift amidst general stability in July. Data from SunSirs indicates that the domestic market price for 98% sulfuric acid fell by 4.1% compared to the previous month; however, price fluctuations remained within a narrow range throughout the month—free from extreme volatility—maintaining a generally steady trend.

On the supply side, the sulfuric acid market remained generally stable in July, despite some localized, temporary tightening. During the month, acid producers and smelting facilities in key regions—such as East and Central China—underwent scheduled maintenance, leading to a slight reduction in spot market availability; meanwhile, low inventory levels at acid plants helped offset oversupply pressures in certain areas. At the same time, most enterprises maintained standard operating rates, resulting in steady industry-wide output without significant production cuts or restarts; this stable national supply laid the foundation for smooth market performance. On the raw material side, prices for sulfur and pyrite fluctuated at high levels, providing solid cost support that limited the downside potential for sulfuric acid prices and stabilized the overall market trend.

Demand remains moderate, underpinned by stable essential requirements, though incremental demand is lacking. Key downstream sectors—such as phosphate fertilizers, titanium dioxide, and fine chemicals—are maintaining steady operating rates; purchasing is driven primarily by immediate needs rather than concentrated stockpiling or large-scale procurement, resulting in a measured pace of market trading. Specifically, while the phosphate fertilizer industry has seen a slight uptick in operating activity—providing solid support for sulfuric acid demand—overall growth in demand remains limited. A strong wait-and-see sentiment prevails downstream, leading to cautious purchasing; this has prevented any significant surge in acid prices, yet also averted a market collapse, as the balance between supply and demand keeps the market stable. Meanwhile, the export market has performed impressively, with total sulfuric acid exports in July showing substantial month-on-month and year-on-year growth; this external demand effectively supplements domestic consumption, further reinforcing the market's overall stability.

In terms of regional dynamics, the sulfuric acid market this month was characterized by overall stability alongside localized divergence. Prices for smelter-grade acid in East China edged down, exerting a slight downward pull on market trends in the neighboring South China and Central China regions. Conversely, acid producers in Central China—including Hunan and Hubei—reported robust shipments and low inventory levels, keeping market conditions relatively firm. Prices in northern regions, such as Hebei, saw a slight uptick; while regional supply-demand imbalances led to minor localized price adjustments, the magnitude of these fluctuations remained small, failing to disrupt the overall stable trend across the country.

According to SunSirs, the domestic sulfuric acid market is expected to maintain stable operations in the short term. High-level price fluctuations for raw materials persist, providing continued cost support; meanwhile, steady downstream essential demand—with no significant anticipated changes—combined with ongoing regional supply-demand dynamics, limits the scope for price volatility. Overall, the market is likely to see stable, range-bound movement with only minor, localized adjustments.

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