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Market Sentiment Under Pressure, Overall Market Trends Downward (August 2026)

Published on 2026-09-08
  1. Market Focus Points for the Month
  • Domestic sulfur output this month was approximately 857,000 tons, up 2.34% month-on-month.
  • National sulfur consumption in this period was 1,290,300 tons, down 0.74% month-on-month.
  • Current national port sulfur inventory was 946,600 tons, up 9.85% month-on-month.
  • The industry capacity utilization rate for monoammonium phosphate (MAP) this month was 54.84%, down 1.73 percentage points from the previous month; for diammonium phosphate (DAP), it was 45.85%, up 5.89 percentage points month-on-month.
  1. Monthly Market Analysis

Table 1 Monthly price changes in the international sulfur market (Unit: USD/ton)

Market Type 2026/7/29 2026/8/28 Change Change (%)
FOB Vancouver Granular 1090 1125 35 3.21
FOB Middle East Granular 875 877.5 2.5 0.29
CFR Indonesia Granular 1100 1150 50 4.55
CFR China Granular 1050 1050 0 0.00

Source: Chempricehub Information

Table 2 Domestic sulfur price summary (Unit: yuan/ton)

Market Type 2026/7/29 2026/8/28 Change Change (%)
Zhenjiang Port Granular 9170 7500 -1670 -18.21%
Dafeng Port Granular 9150 7480 -1670 -18.25%

Source: Chempricehub Information

China’s sulfur spot market moved downward overall in August. Currently, the spot transaction price at Zhenjiang Port is 7,500 yuan/ton, down 1,670 yuan/ton from the end of July, a decline of 18.21%.

At the beginning of the month, Iran once again signaled a possible reopening of the Strait of Hormuz, putting the international market into a bull-bear tug-of-war. As a result, Middle East official prices for August diverged: Qatar and the UAE held prices stable month-on-month, while Kuwait announced an FOB price of USD 865/ton, down USD 85/ton month-on-month. Domestic players were still digesting this news, and spot trading sentiment was lukewarm.

However, after days of facing calm wait-and-see buyers, some holders became more inclined to adjust offers for shipment, and the sulfur market entered a downward consolidation. As time went on, port inquiries and buying interest failed to improve substantially. Potential buyers kept testing with lower bids, eroding holders’ willingness to hold inventory. The spot market was consequently forced lower under pressure, with the scale of downward adjustments tending to widen.

Soon after, a purchase transaction at around CFR USD 1,050/ton was reported from Indonesia. However, this price did not surprise domestic players and therefore had no real impact on the port market. Meanwhile, sellers under psychological pressure gradually lost the upper hand in price negotiations. Particularly after the few interested buyers turned to a wait-and-see stance, sellers had to accept consecutive downward adjustments. Unsurprisingly, market prices fell notably.

Even after these marked adjustments, trading activity failed to recover. Merchants remained passively market-following and wait-and-see, leaving the market trapped in a slump. Subsequently, traders held firmly to a wait-and-see approach, and the number of sellers at ports increased, adding further downward pressure. To stimulate shipments, some sellers were forced to make large price cuts again over several consecutive days.

Toward the end of the month, inquiry and buying interest in the port picked up somewhat. Together with the clear inversion between USD-denominated market prices and domestic spot prices, improved trading activity allowed the market to stabilize temporarily.

  1. Analysis of Market Influencing Factors
  • As of August 28, port inventory in the Yangtze River region was 307,000 tons, up 3.37% from the end of last month.
  • Sulfuric acid capacity utilization in August was 63.24%, up 0.7 percentage points month-on-month.
  1. Next Month Market Forecast

Geopolitical uncertainty in the Middle East will persist, and the shipping status of the Strait of Hormuz will continue to influence global sulfur prices. However, China’s spot market may need to pay more attention to inquiry/buying interest and demand-side performance. Based on the current phosphate fertilizer market outlook, demand support for sulfur is unlikely to be strong. Targeted domestic supply guarantees and export restrictions on sulfuric acid and phosphate fertilizers will prevent phosphate fertilizer producers from raising operating rates significantly. In addition, parties holding resources under long-term contracts will continue to sell those resources, so spot market sentiment will remain under pressure. If traders remain cautious about following up, the sulfur market may continue to decline in September.

Comments

0
  • Elena Vasquez 2026-09-08 10:23
    I see sulfur spot costs crumbling as port inventories climb and phosphate export controls throttle consumption; downstream demand will stay soft until capacity utilization realigns with feedstock availability.
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