The Sulphuric Acid market in China and the US are experiencing contrasting trends. In China, the market is showing an upward trend due to increased domestic trading activities and a rise in production costs. On the other hand, the US Sulphuric Acid market remains stable, with no significant changes in production costs and limited trading activities.

During the week ending on February 28th, the Sulphuric Acid market in China exhibited a strong bullish trend, recording a notable increase of 13.72%. This surge can be largely attributed to the rising production costs of Sulphuric Acid, which were driven by a significant 13.95% hike in the feedstock Sulphur market. Additionally, the ongoing plantation season has contributed to the growing demand for Sulphuric Acid, leading to an increased consumption rate and a reduction in inventory levels. The market dynamics were further influenced by supply constraints in copper concentrates, which continue to impact smelters across China. As a result, concentrate treatment and refining charges (TC/RCs) declined further into mid-February, exacerbating the supply tightness and adding to the bullish momentum in the Sulphuric Acid market.

The increased trading activity in the domestic market following the national holiday further reinforced the bullish sentiment in China. As a result, given the prevailing market conditions, industry players raised their ex-quotations, contributing to the continued upward trend in the market this week.

The US Sulphuric Acid market continues to maintain stability, largely due to unchanged production costs, which stem from the steady prices of feedstock Sulphur. Reports of small or partial cargo transactions within the expected price range remain unverified, with uncertainty surrounding their potential delivery locations. Market consensus suggests that the southeast US market is either balanced or experiencing a slight surplus, while production in the Gulf Coast remains aligned with demand. Spot import demand remains minimal across regions, however, potential tariff changes could renew interest in spot volumes if prices become competitive for domestic distribution.

Proposed tariffs on US imports of Mexican and Canadian goods may drive up prices in the US spot market, particularly in the northeast and southwest, where Sulphuric Acid imports from these countries play a crucial role in market equilibrium. Some suppliers plan to pass most of these additional costs down the supply chain, ultimately leading to higher prices for end users. However, in areas where producers have limited alternative markets for Sulphuric Acid, maintaining balanced inventories remains a priority. This could encourage them to share the tariff burden with buyers rather than transferring the full cost downstream.

According to ChemAnalyst, the US Sulphuric Acid market is anticipated to remain tight through at least the first half of 2025 due to limited supply from US and Canadian smelter-produced acid. Meanwhile, in China, the demand for raw materials of Sulphuric Acid for the domestic season is expected to decline in April, which could lead to reduced import demand. This is largely attributed to fertilizer plants lowering their operating rates, with some opting for maintenance turnarounds during this period.