What is driving the recent price increase for precipitated barium sulfate in China?
Chinese precipitated barium sulfate producers are facing significant cost pressure from upstream raw materials. Shaanxi Fuhua Chemical recently announced a price increase of RMB 100/ton effective August 1, citing barite shortages and rising prices, alongside persistently high coal costs. This reflects a broader trend in the inorganic salt sector where feedstock expenses account for over 50% of production costs. The supply chain for barite, the primary mineral source, has tightened, while energy costs remain elevated. Downstream sectors including paints, coatings, plastics, and rubber are absorbing these increases, though their ability to pass on costs is limited by soft end-market demand. The price adjustment signals that barium sulfate producers are prioritizing margin protection over volume growth in the current environment.
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