Weekly Report on The Sulfur Industry (August 14–21, 2026)

II. Supply and Demand Fundamentals

Supply Side: This week, national sulfur production totaled 191,100 metric tons, down 5,000 metric tons from last week. Lijin Petrochemical suspended operations for maintenance, while production at Guangxi Petrochemical and Inner Mongolia Yitai declined. Domestic production capacity remained at 20.17 million metric tons per year. Overall supply remained largely unchanged, but a trend of structural tightening was evident. Imports of liquid sulfur totaled 32,400 metric tons, up 105.06% from the previous period; however, imports of solid sulfur amounted to only 15,000 metric tons, a 54.55% decrease from the previous week. Currently, the increase in domestic sulfur supply is very limited.

Demand Side: This week, national sulfur consumption reached 290,300 metric tons, an increase of 2,000 metric tons from last week, representing a 0.07% rise. Demand across various downstream industries showed mixed trends, with overall consumption fluctuating at a relatively strong level. The structure of downstream demand has diverged significantly: the weekly operating rate for caprolactam stood at 68.04%, down from the previous week; the capacity utilization rate for titanium dioxide was approximately 72.71%; and the phosphate fertilizer industry is gradually emerging from its seasonal slump, with expectations of a slight increase in operating rates. High sulfur prices are forcing downstream sectors to switch to alternative acid production methods, such as smelting-based acid and phosphogypsum-based acid, fundamentally altering the demand-side reliance on sulfur.

Supply and Demand Balance: This week, there remains a gap of approximately 100,000 metric tons between supply and consumption, which must be covered by port inventories. The global sulfur supply shortage persists, with tight supplies from the Middle East and Kazakhstan. The global supply shortfall is estimated at approximately 5.13 million metric tons, with imports far below normal levels. The combined effects of rising demand from the new energy sector and reduced petroleum refining capacity mean that even if leading phosphate fertilizer and phosphate chemical companies adopt the phosphogypsum acid production route to reduce sulfur demand, sulfur prices are unlikely to return to previous lows.

III. Inventories and Imports

Port Inventories: As of August 18, national port inventories stood at 882,500 metric tons, up 5.25 percentage points from last Thursday. Specifically, Fangchenggang Port held 400,000 metric tons, Zhanjiang Port 160,000 metric tons, Zhenjiang Port 197,000 metric tons, Dafeng Port 89,000 metric tons, Nanjing Port 5,000 metric tons, and Beihai Port 20,000 metric tons. Inventories at Yangtze River ports totaled 287,000 metric tons, an increase of 6,000 metric tons from last Thursday. Although inventories have rebounded slightly, they remain at a near-decade low. During the period from 2026, when inventories plummeted from 2 million metric tons to 750,000 metric tons, price volatility was greatly amplified. The weak inventory buffer makes it difficult to effectively cope with fluctuations in arrivals, and any marginal decrease in arrivals could trigger a sharp price reaction.

Import Arrivals: This week, the recorded volume of solid sulfur arrivals was 15,000 metric tons, a decrease of 54.55% from the previous period; liquid sulfur arrivals totaled 32,400 metric tons, an increase of 105.06% from the previous period. With limited incoming supplies, port inventories remain at low levels. At the end of July, sulfur inventories at ports nationwide briefly fell below 800,000 metric tons. Sinochem Fertilizer’s shipment of 60,900 metric tons of imported sulfur arrived at Dafeng Port in Jiangsu, marking the largest shipment of commercially traded sulfur to arrive in the domestic market this year. Import volumes remain well below normal levels.

IV. International Markets

As of August 21, the main international sulfur market prices were as follows:

• Vancouver FOB: $1,050–1,200 per metric ton

• Middle East FOB: $865–890 per metric ton

• Iran FOB: $750–850 per metric ton

• U.S. Gulf FOB: $1,150–1,200 per metric ton

• Brazil CFR: $1,100–1,200 per metric ton

• India CFR: $1,000–1,100 per metric ton

• Indonesia CFR: $1,050–1,100 per metric ton

• China CFR: $1,000–1,100 per metric ton

The copper and cobalt industries have become the key drivers shaping current international sulfur prices. Over the past month, the market has recorded cumulative transactions totaling 130,000 metric tons of sulfur, which is scheduled to arrive at various West African ports between August and early September. Unlike downstream sectors such as fertilizers, industrial chemicals, and nickel—where procurement costs remain under sustained pressure—buyers in the copper and uranium industries are willing to continue stockpiling at current high prices through the end of the year.

In July, large volumes of sulfur were imported through East African ports to supply copper belt mining regions; in August, the flow of cargo gradually shifted to West African ports. Shipping routes from North America offer freight rate advantages, and inland trucking rates to Central African mining regions have simultaneously declined. Freight rates for shipments to China on mainstream vessel types (30,000–35,000 metric tons) remain at $140–155 per metric ton, resulting in a theoretical CFR cost of $1,005–1,045 per metric ton.

A mix of bullish and bearish factors: Operating rates at sulfur plants in the fertilizer industry continue to decline, leading to shrinking sulfur demand; however, supply shortages in the Middle East and Kazakhstan mean that, even as downstream demand continues to contract, overall market supply remains tight. Although the copper industry supports sulfur prices, a single sector is insufficient to prop up the overall market. Despite significantly weaker downstream demand, global supply shortages will limit the scope for a sharp decline in sulfur prices.

V. Analysis of Downstream-Related Markets

Sulfuric Acid: This week, the domestic sulfuric acid market continued its weak trend, with pronounced regional divergence. Supply remained ample overall, while downstream demand stayed sluggish; industries such as phosphate fertilizers and chemicals largely limited purchases to meeting essential needs. Quotes in Hubei, Hunan, Anhui, and other regions were reduced by 100–135 yuan/metric ton; in Fujian, supported by relatively tight regional supply, prices rose three times during the week, with a cumulative increase of 60–90 yuan/metric ton. The ex-factory price for 98% smelting-grade sulfuric acid in Hubei was 1,550–1,650 yuan/metric ton; in Fujian, it was 1,860–2,010 yuan/metric ton. In mid-August, the average domestic sulfuric acid price stood at 1,738 yuan/metric ton, down 1.54% from the beginning of the month. With downstream end-users in the traditional off-season, the domestic sulfuric acid market remains sluggish in the short term, and the overall market is expected to continue trading on a weak note.

Phosphate Fertilizers: Monoammonium phosphate (MAP) continued its weak performance, with supply-guaranteeing enterprises quoting at the guided price, while traders offered discounts to move inventory, causing the actual transaction price to shift downward. In the downstream compound fertilizer sector, shipments of finished products improved slightly in some areas, though the extent was limited, and buyers remained cautious. Diammonium phosphate (DAP) consolidated at weak levels, with the ex-factory price for 64% DAP in Hubei holding steady at 4,800–4,850 yuan per metric ton. While manufacturers were strongly committed to maintaining prices, the launch of the fall fertilizer season was slow, and end-user purchasing enthusiasm remained limited. Although sulfur prices have fallen by about 16% from their June peak to 8,941 yuan/metric ton, phosphate fertilizer prices have still risen by about 20% year-on-year to 3,785 yuan/metric ton due to rising costs. High sulfur prices in the second half of the year will continue to put cost pressure on the wet-process phosphate chemical and phosphate fertilizer industries.

Titanium Dioxide: The average price of sulfuric acid-process rutile-type titanium dioxide was 14,279 yuan per metric ton, a slight month-over-month decline of 1.14%. On the raw material side, titanium concentrate prices have been consolidating at weaker levels, while sulfuric acid prices have declined in some regions, weakening cost support. With no significant positive developments on the demand side and continued inventory pressure on manufacturers, the market is likely to remain weak in the short term. Currently, the mainstream ex-factory prices for sulfuric acid-process rutile-type titanium dioxide range from 12,800 to 15,200 yuan per metric ton, and for anatase-type titanium dioxide from 12,300 to 13,200 yuan per metric ton.

Lithium Iron Phosphate (LFP): Prices rose initially but then fell; the weekly average price saw a narrow increase driven by lithium prices. Leading manufacturers are operating at full capacity at high production levels, and the energy storage sector forms the core of demand, maintaining underlying support. The new energy sector’s use of lithium iron phosphate contributes 900,000–1.4 million metric tons of new sulfur demand.