The Sulphuric Acid market in Germany and China is displaying contrasting trends. In Germany, the market remains stable but bullish, driven by a tight supply situation that supports higher prices. This stability at the upper end of the price spectrum reflects the ongoing supply constraints, which bolster market sentiment. Conversely, in China, the Sulphuric Acid market is experiencing a downward trend due to a decrease in demand from the downstream Agrochemical sector. This decline in demand for Sulphuric Acid has softened market sentiment, leading to a reduction in prices. Market participants in both regions are adapting their strategies to navigate these varying conditions, aiming to maintain stability and competitiveness amid the changing market landscape.

In China, during the week ending on 20th December, the Sulphuric Acid market experienced a 3.7% decline, primarily due to reduced production costs following a drop in feedstock Sulphur prices. The domestic market of Sulphuric Acid softened further due to uncertainties surrounding DAP and MAP export shipments, with average operating rates for these producers stabilizing at 50-55% to meet winter storage demands, limiting the need for Sulphuric Acid from the Agrochemical sector. Additionally, sufficient inventory levels of Sulphuric Acid met the existing demand, further tempering market activities. Notably, from January to October, China’s Sulphuric Acid exports increased by 1% year on year to 1.9 Mt, while imports decreased by 56% compared to the same period in 2023. These factors collectively contributed to the bearish market sentiment, illustrating the market's responsiveness to both production cost dynamics and fluctuating demand patterns in the downstream sectors.

In Germany, the Sulphuric Acid market is maintaining stability at a higher end, exhibiting bullish trends due to tight supply. This consistent market sentiment is largely attributed to stable production costs, driven by steady prices of feedstock Sulphur. Limited availability of Sulphuric Acid in the spot market has kept prices firm, reducing the number of transactions, with many market sources noting that netback calculations have become largely theoretical. Prices are now being determined more by availability than by actual transactions. Consequently, market participants have kept their ex-quotations stable at higher levels. Furthermore, the spread between Sulphur and Sulphuric Acid has remained unchanged, underscoring the market's stability. This situation highlights the interplay between supply constraints and stable production costs in maintaining bullish market conditions, despite reduced transactional activity.

According to ChemAnalyst, the Sulphuric Acid market in Germany is projected to return to normal availability levels by the first quarter of 2025. Prices are anticipated to gradually decline during this period, influenced by shifts in the supply and demand landscape.