Smelter-grade sulfuric acid prices in China continued to edge lower on the day. As of press time, the ex-factory quotations for 98% smelter-grade sulfuric acid in Henan stood at 1,510–1,730 yuan per tonne, while the delivered prices for 98% smelter-grade sulfuric acid in Yunnan were 1,590–1,710 yuan per tonne.

Recently, smelter-grade sulfuric acid prices have fallen successively in certain regions, exerting negative spillover pressure on the overall market. Acid quotations in surrounding areas of Central China and Southwest China have been adjusted downwards one after another. Supported by persistently high acid prices, downstream participants have grown increasingly cautious and adopted a wait-and-see stance with restrained purchasing activity, leading to softer trading of new orders. Purchasing demand has weakened in some regions, accelerating price declines.

Demand remains segmented. The fertilizer sector still generates rigid demand to underpin the market; nevertheless, low-cost acid supplies are creating downward pressure, making it harder for acid producers to hold prices firm. Transaction levels in some regions may slide further in the near term, leaving the domestic sulfuric acid market in a stable-to-weaker pattern.

Market Outlook

The domestic sulfuric acid market is expected to stay under bearish sentiment this week with further downward shifts in transaction prices. Previously inflated acid quotations in some regions will undergo corrections, and prices in areas around Central and East China will trend downwards.

Operating rates of domestic sulfuric acid plants remain low, while regional prices continue to diverge due to varying maintenance schedules and differentiated supply availability across producers. High raw material costs will keep production expenses elevated in the short run, curbing the scope for further acid price falls.

Downstream phosphate fertilizer output is projected to pick up modestly as the seasonal slowdown gradually eases, which may lift sulfuric acid demand later. By contrast, demand from the chemical industry will shrink slightly amid high raw material costs and reduced operating rates at some facilities.

Overall, negative factors dominate the sulfuric acid market, with fierce price game tensions between upstream and downstream players. The market will operate in a stable-to-weak trajectory. Constrained by production costs, however, the room for price drops is limited. The market is forecast to trend slightly lower amid volatility in the period ahead.