Core Insights - The recent surge in sulfuric acid prices, with a cumulative increase of 63.9%, is primarily driven by rising sulfur raw material prices and supply constraints [1][2] - As of late December, sulfur prices have begun to decline, leading to price reductions in sulfuric acid in key production areas [1][2] Group 1: Price Dynamics - Sulfur prices have significantly increased, reaching a peak of over 4200 yuan in mid-December, marking a 130% rise since the beginning of the year [2] - The domestic sulfuric acid market has seen a price increase due to the rising costs of sulfur and sulfur iron ore, which have provided strong cost support [2][3] Group 2: Supply and Demand Factors - Domestic sulfuric acid production has been affected by maintenance shutdowns, with approximately 21.38 million tons of annual processing capacity undergoing repairs [2] - Export orders for sulfuric acid have been robust, with exports increasing by 90.69% year-on-year, while imports have decreased by 23.21% [2] Group 3: Industry Response and Policy Measures - In response to rising sulfur prices, a meeting was held to stabilize sulfuric acid prices and prioritize domestic supply, leading to a reduction in export volumes [4][5] - The industry is shifting towards a collaborative approach to ensure supply stability, with encouragement for long-term purchase agreements between sulfuric acid and phosphate fertilizer producers [5] Group 4: Market Outlook - Analysts predict that the sulfuric acid market will experience a period of price stabilization and supply prioritization, with a potential return to more reasonable price levels [7] - Despite a slight decline in sulfur prices, the overall cost support from sulfur iron ore remains strong, limiting the downward price movement of sulfuric acid [7]