According to the Commodity Analysis System of Business Society, the domestic sulfuric acid market prices increased significantly in February. The market price of sulfuric acid increased from 187.50 yuan/ton at the beginning of the month to 203.75 yuan/ton at the end of the month, an increase of 8.67%, and the price at the end of the month decreased by 19.57% year-on-year.

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

Cost side: The sulfur market has significantly increased

From a cost perspective, the post holiday sulfur market has a positive trading atmosphere, smooth refinery shipments, and an increase in sulfur prices. In February, the price of sulfur increased from 933.33 yuan/ton at the beginning of the month to 1020 yuan/ton at the end of the month, an increase of 9.29%, and the price at the end of the month decreased by 8.66% year-on-year. The upstream sulfur market has significantly increased, with good cost support, which has a positive impact on the price of sulfuric acid.

On the demand side, the downstream market fluctuates narrowly

From the demand side, the follow-up of new orders in the ammonium phosphate market is weak, and the trading atmosphere is weak, with a decline in the focus of ammonium phosphate transactions. The market price of monoammonium phosphate in February decreased from 3133.33 yuan/ton at the beginning of the month to 3120 yuan/ton at the end of the month, a decrease of 0.43%. The price at the end of the month decreased by 6.31% year-on-year. The downstream market of sulfuric acid has slightly declined, and downstream manufacturers have weakened their enthusiasm for purchasing sulfuric acid.

Looking at the future: In mid to early March, the domestic sulfuric acid market may experience a slight fluctuation and rise, with consolidation being the main trend. Although the downstream market for monoammonium phosphate is consolidating at a low level, the downstream’s enthusiasm for purchasing sulfuric acid is weak. But the upstream sulfur prices have significantly increased, leading to increased cost support. The sulfuric acid analyst from Business Society believes that in the short term, the sulfuric acid market may experience slight fluctuations and gains due to various factors such as supply and demand and raw materials, with consolidation being the main trend.