NAV

Wuxi High Mountain Hi-tech Development Co., Ltd., a premier global chemical supplier with a 30-year legacy originating from the Wuxi Chemical Group, presents the definitive 2025 annual performance report for the China Sulfuric Acid market. This analysis focuses on the cost-push inflation, supply-side shifts, and the emerging 2026 Q1 procurement landscape.

1. Annual Market Performance: A Strong Bullish Cycle

Throughout 2025, the domestic sulfuric acid market experienced a robust upward trajectory. Driven by the aggressive price surge of raw material Sulfur, all acid variants hit multi-year highs.

Key Price Metrics (As of Dec 31, 2025)

• Sulfur-based Acid: Recorded the most significant growth. Average ex-factory prices surged to 1,096 RMB/ton, a massive 144% increase from the January 1st price of 448 RMB/ton.

• Ore-based Acid (Pyrite): Followed the trend due to rising mining costs, with prices climbing from 479 RMB/ton to 1,069 RMB/ton.

• Smelter Acid: Remained firm at 896 RMB/ton, up from 364 RMB/ton at the start of the year, supported by tightening spot availability in the industrial clusters.

2. The Core Catalyst: Sulfur Price "Frenzy"

The primary driver behind the 2025 rally was the skyrocketing cost of imported sulfur. China's sulfur import dependency remained high at 50-53%, making the domestic market highly sensitive to global supply chain disruptions.

• Port Benchmarks: Average port sulfur prices escalated from 1,563 RMB/ton in January to a peak exceeding 4,040 RMB/ton in December.

• Macro Factors: Geopolitical tensions and trade tariffs on energy products significantly restricted global supply, while the booming Lithium Iron Phosphate (LFP) battery sector created a massive new demand sink for sulfuric acid beyond traditional fertilizers.

3. Industrial Impact: Profit Inversion and Operational Pressure

Despite high selling prices, sulfuric acid manufacturers faced severe margin compression.

• Cost vs. Profit: By the end of 2025, the theoretical production cost for sulfur-based acid reached 1,479.6 RMB/ton, leading to a negative margin of approximately -155.19 RMB/ton.

• Supply Contraction: In response to these losses, many sulfur-based acid plants reduced their operating rates to below 50% in Q4, leading to a supply-side squeeze that further supported price levels.

4. Strategic Forecast: 2026 Q1 and Beyond

As we enter early 2026, Wuxi High Mountain anticipates a "Steady-to-Firm" market environment:

• Supply Stability: While logistics will pause briefly for the Spring Festival, large-scale smelters are expected to maintain steady production.

• Demand Recovery: The "Spring Sowing" season in late February will stimulate demand from the phosphate fertilizer sector.

• Price Adjustment: Post-holiday market re-entry is likely to see a moderate price rebound (est. 30-50 RMB/ton) as industrial activity resumes and inventory levels remain lean.

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About Wuxi High Mountain Hi-tech Development Co., Ltd.

Founded in 1992, Wuxi High Mountain (formerly Wuxi Chemical Group) is a technology-driven industrial leader specializing in specialty chemicals. Our core portfolio includes Monochloroacetic Acid (MCAA), PVC Paste Resin, Caustic Soda, and Industrial Sulfuric Acid. With an international marketing network spanning 30+ years, we provide high-precision technical solutions and optimized chemical logistics for global partners.

Official Website: https://www.wxhmchem.com/