US Sulphuric Acid Market Starts August Stable After 2.66% July Gain

During July, Sulphuric acid prices recorded a 2.66% month-on-month increase, reflecting the cumulative impact of tighter global availability and steady industrial demand. The monthly rise was supported particularly by reduced export availability from China, which tightened international sulphuric acid supply and strengthened the underlying market sentiment. Despite this support, the market did not maintain a consistently bullish trajectory throughout the month. Sulphuric acid trading was largely range-bound during the opening and middle portions of July, while increased caution among buyers and softer spot activity toward the end of the month introduced downward pressure. The late-month correction therefore moderated the overall monthly increase without reversing the broader firmness seen during July.

Demand conditions for Sulphuric acid remained mixed across major downstream industries. Fertilizer manufacturing represented the weaker side of the demand equation, as phosphate fertilizer producers and other fertilizer buyers remained cautious with procurement. Falling domestic fertilizer prices, combined with adequate inventories, encouraged buyers to postpone discretionary purchases and focus mainly on immediate requirements. This limited spot demand for Sulphuric acid and reduced the ability of sellers to push through additional increases. Nevertheless, consumption from metals-processing industries provided an important counterbalance. Nickel and cobalt processing continued to generate regular requirements for Sulphuric acid, maintaining a baseline level of industrial consumption and preventing the market from weakening more sharply. The divergence between fertilizer and metals demand kept overall Sulphuric acid consumption relatively balanced entering August.

On the supply side, feedstock developments exerted downward pressure on Sulphuric acid production economics. Granular sulphur prices weakened toward the end of July, reducing cost support for finished Sulphuric acid and encouraging suppliers to adopt more competitive selling strategies. Lower feedstock costs gave producers and importers greater flexibility when negotiating spot cargoes, particularly as fertilizer buyers remained reluctant to build inventories. At the same time, Gulf Coast import logistics remained broadly stable. Cargo arrivals continued at regular levels, while limited port congestion ensured that available Sulphuric acid tonnage could reach the market without significant logistical premiums. The absence of major domestic plant outages also meant that no substantial supply disruption emerged to offset the softer feedstock environment.

Near-term prospects for Sulphuric acid will depend on the interaction between feedstock costs, import availability and downstream procurement. If granular sulphur prices remain soft and Gulf Coast cargo arrivals continue without disruption, Sulphuric acid sellers may face continued pressure to maintain competitive offers. However, persistent restrictions on Chinese exports could limit the downside by tightening global availability. A recovery in fertilizer procurement or sustained demand from nickel and cobalt processors could also strengthen the market and restore upward momentum. Overall, Sulphuric acid prices are expected to remain broadly range-bound in the near term, with stable early-August conditions likely to continue unless there is a significant change in global supply availability, feedstock costs or downstream industrial demand.