According to the Commodity Analysis System of Shengyishe, the domestic sulfuric acid market prices dropped significantly in December. The market price of sulfuric acid dropped from 302 yuan/ton at the beginning of the month to 278 yuan/ton at the end of the month, a decrease of 7.95%, and the month end price fell by 4.69% year-on-year.

From the supply side perspective, the prices of mainstream domestic sulfuric acid manufacturers have dropped significantly this month, and the inventory levels of manufacturers are relatively low.

Cost side: Sulfur market fluctuates and rises

From a cost perspective, the ex factory price of sulfur in East China fluctuated and increased in December. The price of sulfur increased from 1060 yuan/ton at the beginning of the month to 1093.33 yuan/ton at the end of the month, an increase of 3.14%, and the price at the end of the month decreased by 13.91% year-on-year. The upstream sulfur market has slightly increased, with good cost support, which has a positive impact on the price of sulfuric acid.

On the demand side: Downstream market drops significantly

From the demand side, the market for monoammonium phosphate experienced a significant decline in December. The price dropped from 3500 yuan/ton at the beginning of the month to 3370 yuan/ton at the end of the month, a decrease of 3.71%, and the month end price increased by 4.73% year-on-year. The downstream market of sulfuric acid has significantly declined, and downstream manufacturers have weakened their enthusiasm for purchasing sulfuric acid.

Looking at the future: In mid to early January, the domestic sulfuric acid market may experience a slight fluctuation and decline, with consolidation being the main trend. The downstream market for monoammonium phosphate has significantly declined, and downstream enthusiasm for purchasing sulfuric acid has weakened. Upstream sulfur prices are showing a downward trend, with weakened cost support. The sulfuric acid analyst from Business Society believes that in the short term, the sulfuric acid market may experience a slight fluctuation and decline due to various factors such as supply and demand and raw materials, with consolidation being the main trend.