In 2026, the annual average price of domestic 98% sulfuric acid rose markedly, with the price center remaining far above historical levels. The year exhibited extreme price spreads, characterized by a sustained upward trend in the first half, high-level consolidation in the third quarter, and a peak followed by a decline in the fourth quarter. The Chempricehub index for 98% sulfuric acid peaked at 1,923 yuan/ton in July, while hitting its low point near 985 yuan/ton in January. Price increases were supported by disruptions in Middle Eastern sulfur supplies and soaring imported sulfur prices, compounded by concentrated maintenance shutdowns across multiple domestic smelting-acid and sulfur-based acid plants, which caused temporary supply contractions. Starting in May, tightened export policies on ordinary sulfuric acid led to retained domestic inventory, providing further support to prices in the earlier stages. However, later in the year, high prices suppressed procurement by downstream phosphatic fertilizer and titanium dioxide industries. Coupled with the gradual release of new smelting-acid capacity, market conditions deteriorated noticeably in the fourth quarter. The full-year market fluctuation reached its highest level in recent years.
In 2026, global copper mine output growth was insufficient due to declining ore grades and geopolitical disruptions, leading to continued scarcity of copper concentrates. Long-term contract TC benchmarks dropped to zero, and spot TCs fell into negative territory throughout the year. According to Shanghai Ganglian data, the weekly import copper concentrate TC index hit a low of -246.24 USD/dmt, meaning smelters had to pay extra just to process raw materials. As domestic copper smelting capacity expanded rapidly, industry competition intensified. Most smelters relied on revenue from byproduct sulfuric acid to offset losses in copper smelting operations, making acid sales their primary source of profit. However, as acid prices declined in the second half of the year, this profitability buffer weakened. Several smelters proactively extended maintenance periods and temporarily reduced operating loads, adjusting smelting-acid supply rhythms flexibly based on profit-and-loss status. Consequently, the weight of smelting-derived acid in China’s overall sulfuric acid supply structure increased further.
At the end of October, Xingfa Group announced the investment in a large-scale phosphogypsum resource utilization project. The plan involves building a new facility capable of producing 790,000 tons of sulfuric acid annually, accompanied by a 750,000-ton cement clinker unit, with a total investment of approximately 1.436 billion yuan. The project will consume 2 million tons of phosphogypsum per year, directly replacing substantial volumes of imported sulfur. Utilizing a phosphogypsum reduction-decomposition process for acid production, the project converts phosphorus chemical industry solid waste into sulfuric acid and construction materials, establishing an internal cycle for sulfur and calcium resources. Against the backdrop of high sulfur prices, the economic viability of phosphogypsum-based acid production has become increasingly apparent. Major phosphorus chemical provinces such as Hubei, Guizhou, and Yunnan are advancing similar capacity replacement projects in batches. Phosphogypsum-based acid production is becoming the mainstream direction for reducing dependence on imported sulfur and alleviating pressure from solid waste stockpiling.
In July, the environmental impact assessment for Huayou Holdings’ integrated phosphorus-coal-chemical project in Bijie, Guizhou, was accepted. The project includes a planned annual sulfuric acid capacity of 2 million tons, comprising 1.6 million tons from sulfur-based acid production and 400,000 tons from pyrite-based acid production. It also features parallel lines for wet-process phosphoric acid, iron phosphate, and lithium iron phosphate, creating an integrated closed loop: “sulfuric acid – phosphoric acid – iron phosphate – lithium iron phosphate.” Leveraging local sulfur and phosphorus resources, the project aims for self-sufficiency in sulfuric acid to support new energy battery materials. This marks the continued extension of sulfuric acid capacity into upstream new energy material sectors, shifting the demand structure from traditional phosphatic fertilizers toward new energy materials.
From May 1 through the end of the year, exports of ordinary industrial sulfuric acid and smelting byproduct sulfuric acid were suspended. Only electronic-grade high-purity sulfuric acid could be exported via specific approval channels. The core objective of this policy was to prioritize securing domestic supply for spring planting phosphatic fertilizers and key chemical feedstocks. This measure directly altered the global sulfuric acid trade landscape, widening supply gaps for overseas wet metallurgy and fertilizer enterprises while increasing returned domestic export inventories. It profoundly changed domestic supply-demand dynamics and pricing logic, becoming the most significant policy variable in the sulfuric acid market for the year. Domestic acid producers were forced to adjust their sales structures and deepen engagement with refined domestic downstream customers.
In September, the first trainload of tank containers filled with smelting sulfuric acid successfully arrived at the dedicated station of Wengfu Chemical under Guizhou Phosphate Group. This marked the establishment of a new stable railway procurement channel for smelting acid at the Wengfu base. The channel opened up transportation paths for external smelting acid entering Guizhou, utilizing a road-rail intermodal tank container model that reduces transport loss and offers greater transfer flexibility. This initiative supplements external sulfur resources for the Qiannan phosphorus chemical base, forming a dual-supply system combining self-produced phosphogypsum-based acid and externally procured smelting acid. This further guarantees stable raw material supply for phosphatic fertilizers and provides a replicable logistics solution for cross-provincial long-distance sulfuric acid circulation in Southwest China.
Throughout the year, large smelting acid units in Shandong, Guangxi, Anhui, and Liaoning underwent scheduled maintenance in a concentrated period. Multiple million-ton-class smelting acid facilities, including those at Jinchuan in Guangxi, Jiangtong Guoxing, Huludao Zinc Industry, and Yanggu in Shandong, were shut down sequentially, involving massive total capacity. Single-unit maintenance cycles lasted up to 45 days. During these concentrated maintenance periods, supply of smelting acid tightened rapidly in regions such as Shandong, Southwest China, and Central China, widening regional price spreads and boosting cross-regional trading activity. Following the maintenance periods, concentrated restarts created localized supply pressures again. Regional divergence in market trends persisted throughout the year, amplifying the influence of smelting acid plant start-up and shutdown rhythms on short-term market movements.
Driven by growing demand from the domestic semiconductor, photovoltaic, and electronic chemicals sectors, several chemical and smelting enterprises have launched projects for electronic-grade high-purity sulfuric acid. Amid volatile ordinary sulfuric acid markets, high-purity acid has maintained independent market performance due to specialized export qualifications and stable high gross margins. The industry has gradually formed a differentiated layout strategy: “bulk smelting/sulfur-based acid secures basic demand, while high-purity electronic sulfuric acid creates profit increments.” This promotes the extension of the sulfuric acid industry from simple bulk basic raw materials to high-end electronic chemicals, accelerating product structure upgrades. Investment focus within the industry is progressively shifting toward high-purity and refined sulfuric acid.
During the year, five provinces—Hubei, Yunnan, Guizhou, Sichuan, and Anhui—implemented specific capacity replacement policies. Acid-cum-clinker co-production projects primarily focused on disposing of phosphogypsum and titanium gypsum are eligible for equal-volume capacity replacement. Additionally, these production lines have been incorporated into special carbon quota accounting rules. Policy benefits combined with high sulfur prices have notably accelerated the filing and commencement of phosphogypsum-based acid projects. Total planned capacity for phosphogypsum-based acid production exceeded 10 million tons in public notices throughout the year. In the long term, this is expected to continuously reduce domestic industry reliance on imported sulfur, reshape the technological structure of domestic sulfuric acid production, and establish sulfur resource recycling as a main line of industrial transformation.
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