Core Insights - The Chinese pyrite industry is undergoing significant transformation and value reconstruction, driven by technological advancements and shifts in demand towards high-purity sulfur for new energy applications [1][3]. Industry Overview - China's proven pyrite reserves reached 1.047 billion tons as of 2023, with a concentration of high-grade ore (S>35%) at only 3.3%, predominantly located in Guangdong [2][9]. - The resource distribution is characterized by a core of rich ore and supplementary associated ore, with major production provinces being Guangdong, Jiangxi, and Anhui, which together account for 35.08% of national output [2][9]. Current Industry Status - The industry is experiencing a dual-track development, with traditional demand remaining stable while new applications, particularly in lithium battery cathode materials and wet phosphoric acid, are expanding rapidly [2][3]. - The leading companies, such as Yuegui Co., are establishing large-scale production lines for battery-grade sulfur, with a capacity of 150,000 tons per year, expected to expand to 300,000 tons by 2025, fulfilling 40% of global solid-state battery demand [3][13]. Development Trends - The industry is shifting towards high-value transformation driven by new energy, with solid-state batteries significantly increasing the demand for high-purity sulfur [3][4]. - Resource consolidation is intensifying, with the top three companies (Yuegui Co., Jiangxi Copper, and Guangsheng Nonferrous) controlling over 50% of the market, while smaller mines are exiting due to rising environmental costs [4][5]. Supply and Demand Dynamics - Pyrite prices are projected to rise, with estimates of 1,250-1,400 RMB per ton by 2025 and potentially reaching 2,150 RMB per ton by 2030, supported by recovering steel demand, tightening environmental regulations, and the mass production of solid-state batteries [5][6]. - The traditional sulfuric acid market is expected to shrink, while the production of sulfuric acid from sulfur and smelting flue gas will become mainstream, indicating a shift in the industry's focus [5][6].