News and Articles

• Shandong Kenli set its 97% sulfuric acid offer at 1,680 yuan per tonne.
• East China solid sulfur prices rose above 4,000 yuan per tonne.
• Shandong 98% ore-based sulfuric acid moved above 900 yuan per tonne.
• Higher sulfur costs remain the main driver behind stronger acid offers.
• Buyers are likely to prefer term contracts over spot purchases while prices remain volatile.

Shandong Kenli Group Petrochemical has raised its offer for 97% sulfuric acid to 1,680 yuan per tonne, reflecting stronger cost pressure in China’s acid market as sulfur feedstock prices continue to rise.

The latest offer adds a new high-priced marker to the Shandong sulfuric acid market, where producers are facing higher raw material costs and limited room to reduce quotations. The main driver remains the sharp increase in sulfur prices. In East China, solid sulfur prices have climbed above 4,000 yuan per tonne, around 160% higher than the same period last year and close to the highest levels seen in recent years.

Supply tightness has been linked to reduced sulfur cargo availability from the Middle East, especially Iran. Iran is a major sulfur exporter, and lower movement of cargoes through key shipping routes has tightened supply for Chinese buyers. China relies heavily on Middle Eastern sulfur imports, so any disruption in regional supply quickly affects domestic feedstock costs.

Sulfuric acid prices have responded strongly. In Shandong, 98% ore-based sulfuric acid has moved above 900 yuan per tonne, supported by expensive sulfur, temporary stoppages at some acid units and steady buying from downstream users. Kenli’s 97% sulfuric acid price of 1,680 yuan per tonne is well above levels normally seen during the spring season.

Producers currently have little incentive to cut offers while sulfur costs remain elevated. Buyers, meanwhile, are facing a higher cost base and are showing more interest in medium-term contracts to reduce exposure to further price increases in the spot market.
Downstream demand from fertilizer, titanium dioxide, lithium iron phosphate and copper hydrometallurgy sectors remains an important support for acid consumption. Some buyers are already reviewing purchase timing and supply terms as higher sulfuric acid prices affect production costs.

Market participants do not expect a quick correction unless sulfur supply improves or feedstock prices weaken. With Middle Eastern supply uncertainty still affecting cargo flows, sulfuric acid prices in East China and Shandong are likely to remain firm in the near term.