The domestic sulfuric acid market maintained a trend of rising at a high level on this day. As of now, the ex-factory price of 98% smelting acid in Shandong ranges from 1,180 to 1,700 CNY per ton, and that of 98% sulfur-based sulfuric acid is between 2,300 and 2,450 CNY per ton; the ex-factory price of 98% smelting acid in Zhejiang stands at 1,750 to 1,810 CNY per ton. The price of sulfur, the raw material, continued to surge sharply today. The transaction price at Zhenjiang Port reached 6,450 CNY per ton, an increase of 220 CNY per ton compared with the previous working day. Market holders have a strong reluctance to sell, and quotations for new orders remain firm. Over the week, maintenance of major domestic sulfuric acid producers has been relatively concentrated, leading to a low operating rate of acid plants in some regions and a persistent shortage in spot market supply. Downstream market demand remains generally stable. Supported by rigid demand, acid plants are also reluctant to sell their products, and major producers have further raised their quotations. The market price rose by about 100 to 200 CNY per ton today, with transactions mainly conducted at a firm high price. At present, there is still an upside expectation for sulfur prices. Although some acid plants plan to postpone their maintenance schedules, the tight market supply situation has not eased for the time being, and sulfuric acid prices are expected to continue operating at a high level.

Market Forecast for the Near Term

The domestic sulfuric acid market will remain firm at a high level this week. Affected by uncertainties stemming from geopolitical conflicts, sulfur prices have surged sharply and still face an upside expectation. In addition, the prices of pyrite and other related products have moved up at a high level, providing strong cost support for sulfuric acid. Cargo supply in the sulfuric acid market will remain tight this week. Despite most acid plants currently operating at full capacity, the tight cargo circulation situation is hard to alleviate. Downstream demand remains driven by rigid needs: although downstream product prices have risen in tandem with the sharp surge in sulfuric acid prices, downstream enterprises are faced with considerable cost pressure from high-priced sulfuric acid and thus adopt a cautious approach to procurement based on rigid demand. In the short term, driven by cost and supply factors, domestic sulfuric acid prices will continue to rise at a high level this week, and the core transaction price of the market will move further upward.