In 2025, the sulfuric acid industry presented a "strong external demand, internal differentiation, and capacity optimization" distinct characteristic. The industry continues to evolve through a "new generation of iterations" for both old and new capacities, with restrictions on outdated capacities being rapidly phased out and high-end capacities precisely supplementing these gaps. The market side was influenced by changes in import and export patterns, downturns in downstream demand, and surges in raw material costs, with the annual growth rate reaching 117% according to Business Society data. Key events include:

1. Policy-led transformation: Standard upgrades and capacity control double drive - July 1st: The newly revised GB/T 534-2024 national standard for industrial sulfuric acid officially came into effect, adding key requirements such as restrictions on heavy metals like chromium and tightening the control of key indicators like iron in sulfuric acid qualified products, effectively linking with the Ministry of Ecology and Environment's policies on heavy metal pollution prevention.
2. Capacity adjustment: Older capacities are phased out while new high-end capacities are added - throughout the year, the implementation of the "Guidelines for Industrial Capacity Optimization (2024)" has led to the phasing out of units producing less than 300,000 tons per year of sulphide acid (except electronic grade sulfuric acid), and units producing less than 200,000 tons per year of sulphide acid. Local areas have not added new projects for traditional sulphide acid or sulphuric acid production, instead focusing on supporting technological upgrades and high-end product development for consumers.
3. Capacity structure optimization: Older capacities are phased out, while new high-end and supporting capacities are supplemented - throughout the year, the phase-out of restricted/eliminated capacities was accelerated, with local areas strictly implementing industrial policies to eliminate or phase out traditional sulphide acid and sulphuric acid production units of more than 100,000 tons per year. This continuous optimization of the industry's capacity structure has seen an increase in the proportion of large-scale sulfuric acid and large-scale sulphuric acid, with the characteristics of supporting downstream industries becoming increasingly prominent.
4. Market fluctuation adjustment: Strong external demand drives significant price increases - March: Sulfuric acid prices began their first rapid increase since the beginning of the year. According to Business Society data, as of March 28th, the average price of 98% sulfuric acid rose by 23.56% compared to the start of the month, reaching $670.64 per ton, a year-on-year increase of 14.64%. This increase was primarily driven by the high support from the prices of raw materials such as sulfur and the demand for downstream industries like phosphoric acid and titanium dioxide during the spring planting season. Some regions experienced limited production due to environmental restrictions leading to a further strain on capacity supply.
   August: Significant exports boost external demand, driving price increases - As of August, sulfuric acid exports reached 435,000 tons, a year-on-year increase of 106.71%, totaling 305,390 tons. Exports were mainly concentrated in Saudi Arabia, Morocco, and Chile, with Guangxi, Shandong, and Anhui accounting for 89.53% of the main exporting provinces, totaling 97.5%. A significant export flow to domestic resources further fueled price increases.
   August: Imports remain low but high-end and general sulfuric acids exhibit price differentiation - As of August, import volumes were only 0.86 million tons, a decrease of 45.44% compared to the previous year. Imports mainly came from South Korea and Taiwan, China. General industrial sulfuric acid import prices were about $75 per ton, while high-end premium sulfuric acid import prices were significantly higher at $730.72 per ton, resulting in a significant price difference.
   November to December: Prices rise again, with a month-on-month increase of over 60% - Driven by global sulphur resource shortages, raw material costs surged, with the cost of raw materials like sulfur increasing significantly compared to the beginning of the year, reaching a 130% increase. This powerful transmission of costs drove up sulfuric acid prices sharply. According to Business Society monitoring, the prices of sulfuric acid in East China increased from 637 yuan/ton on October 12th to 1045 yuan/ton on December 12th, a two-month total increase of 63.9%. Industries in Jiangxi, Zhejiang, Hunan, Hubei, and other places concentrated on maintenance, leading to a sharp rise in supply and a further strengthening of price trends. Enterprises in central and southern China frequently raised prices, with an average increase of 40-100 yuan/ton.
   December 18th: Two associations jointly took action to stabilize supply and price - To address the severe impact of fluctuating sulfuric acid prices on fertilizer production, measures were taken including: (1) Increasing supply towards fertilizer production, strictly controlling exports to ensure domestic prices are not lower than those abroad; (2) Promoting long-term stable purchasing relationships between fertilizer enterprises and sulfuric acid producers; (3) Establishing a reasonable pricing mechanism to avoid wild fluctuations in prices and ensure agricultural production remains stable.
   Technological and industrial upgrading: High-end transformation accelerated, industrial chain integration deepened - During the year, high-end electronic grade sulfuric acid technology achieved breakthroughs, with multiple companies in the industry accelerating R&D and layout of electronic grade sulfuric acid. These technologies are essential for the semiconductor industry's growth, driven by increasing demand for new energy and semiconductors.
   Research and industry collaboration: Enhancing quality upgrades through cooperation with academic institutions - Local governments guided enterprises to strengthen cooperation with academic research institutions, focusing on developing high-end products like photoresist and lithium bromide, enhancing product value through technological innovation and overcoming price competition challenges.
   Industry chain integration: Integrated layout of "sulfuric acid - downstream consumer industries" - Main producing areas promoted an integrated layout between "sulfuric acid - downstream consumer industries", focusing on attracting downstream industries like hydrogen fluoride, calcium fluoride, lithium bromide, etc. Meanwhile, cross-regional resource coordination was enhanced, such as Tongling relying on its chemical resources to connect with Xuancheng's fluorinating industry, achieving complementarity and mutual benefit among regions.
   Trade pattern reshaping: Extensive export orientation, regional concentration - Annually, the export market is highly concentrated, with external demand playing a crucial role in supporting the industry. As of the end of 2025, the expected export volume exceeded 4 million tons, with Saudi Arabia being the largest export destination. General trade accounted for more than 99.96% of exports, becoming an important channel for absorbing production capacity.
   Import dependence: Low domestic production volume, clear structure differentiation - The import volume was expected to be less than 120,000 tons, primarily relying on imports from South Korea and China's Taiwan. China's Taiwan primarily supplied high-end products, while South Korea focused on general industrial sulfuric acids. Import locations were mainly in Shandong, Jiangsu, Shanghai, etc., with high-end sulfuric acids imported by Qingdao and other regions spending an average of more than ten times higher than general products.
   Improved logistics infrastructure: Enhancing transportation capacity through construction projects - Key cities like Tongling launched large-scale liquid chemical dock expansion projects, including the addition of several new 3000-5000-ton capacity marine docks, enhancing the capability of sulfuric acid water transport. These measures provided support for sulfuric acid and other transboundary goods' export and import operations.
   Policy guidance: Promoting quality upgrades and capacity optimization - During the year, policy guidance played a significant role in promoting quality upgrades and optimized capacity levels within the industry. Restrictions on outdated capacities were promptly lifted, high-end capacities were precisely supplemented, and latecomers were gradually eliminated.
   Market dynamics: Significant price increases driven by raw material supply shocks - The raw material prices surged dramatically, leading to substantial price increases for downstream industries. Despite strong pressure from domestic demand, high-end and high-end consumer industries remained the main drivers of industry growth.
   International cooperation: Regional integration and market dominance - The international market saw a significant shift in power balance from the outside world towards China's domestic market, with China's domestic market becoming the main driver of industry growth.
   Economic and social development: Supportive policies and stable growth - Government policies supported the industry's growth through various measures, including strict control on excess capacity and promotion of high-end products. These measures helped stabilize economic and social development amidst market volatility and fluctuations.