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n May 2026, the domestic sulfuric acid market continued to rise, with prices continuing to rise and overall operating at a high level for the year. As of the end of May, the mainstream transaction price of 98% concentrated sulfuric acid in China was concentrated between 1800-2100 yuan/ton, and the average price continued to rise during the month, reaching a new high in the same period in nearly three years. Although downstream phosphate fertilizer has entered the traditional off-season of demand, the overall market is prone to rise but difficult to fall, with a clear pattern of unilateral upward movement supported by the double benefits of skyrocketing raw material costs and tightening on-site supply.
Firstly, the soaring prices of raw materials have provided strong cost support
Sulfur is the main raw material for sulfuric acid production, and the spot price of sulfur at ports has continued to soar this month, stabilizing above 7000 yuan/ton at the end of the month, with high pressure on raw material costs. Synchronized with the upward trend is the price of pyrite raw materials. Mainstream sulfur based sulfuric acid production enterprises continue to suffer losses, and acid plants have a strong willingness to raise prices, with no room for price reduction, supporting the continuous rise of acid prices from the source.
Secondly, centralized maintenance of equipment and tightening of market supply
In May and June, large-scale acid production facilities in many regions of China underwent centralized maintenance, resulting in a significant reduction in the supply of goods in the main production areas of East China, Central China, and Northwest China. Although sulfuric acid exports have been suspended since May and some of the exported goods have returned to China, the increase in return is far less than the shortage of goods caused by maintenance. The industry as a whole maintains a tight supply balance, coupled with a low overall operating rate, further boosting the market.
Finally, the demand for new energy has weakened the bearish sentiment of the season
After the end of spring plowing, the demand for phosphate fertilizer fell sharply, and the downstream of traditional fertilizers dragged down the market trend. However, the demand for lithium iron phosphate in the new energy sector remains high, while downstream fine chemicals such as titanium dioxide and fluorine chemicals maintain stable replenishment, effectively offsetting the negative impact of declining fertilizer demand during the off-season and supporting the stability of sulfuric acid demand fundamentals.
Situation in major mainstream regions in China:
East China, Central China, and Northeast China: With concentrated equipment maintenance, scarce supply of goods, and cost support, regional prices continue to rise, and the market is the strongest.
Southwest and Northwest regions: Low demand for phosphate fertilizers, slight accumulation of inventory by manufacturers, and slight price reductions and destocking by local acid companies, resulting in weak prices.
South China: Market polarization, Guangxi’s prices are weak due to the impact of low-priced goods from other provinces, and Guangdong’s maintenance support maintains high prices.
In the short term, the sulfuric acid market remained high and firm in June, with a regional differentiation pattern. The tight situation of raw material sulfur is difficult to alleviate quickly, and coupled with the fact that the maintenance units next month have not yet resumed production, the supply gap continues to exist; The downstream is still dominated by the off-season for phosphate fertilizers and the basic demand for new energy. Overall, there is still room for short-term acid prices to rise, and only weak demand areas such as the southwest are unlikely to see a significant increase in prices. In the medium to long term, attention should be paid to the arrival volume of imported sulfur at ports and the progress of domestic plant resumption, as these two variables will determine the turning point of the market.
The sulfuric acid market strengthened against the trend in May, driven by high raw material costs, tightening supply sources, and weak demand in downstream demand for new energy. At present, cost remains the core factor driving the market trend, and it is difficult to reverse the high-level operation of the sulfuric acid market in the short term.