Jinan Zhuocheng Bio-Tech Co., Ltd.

As of June 9, China’s sulfur market has officially entered the “10,000-yuan era.” According to industry data, mainstream prices for solid sulfur in Shandong have climbed above RMB 10,040/ton, while prices in East China have surged further to RMB 10,220–10,310/ton.

At the beginning of June, prices in Shandong were still below RMB 8,000/ton. Within just over a week, they rose by more than RMB 2,000/ton. Compared with early 2026, when average prices were around RMB 3,850/ton, the cumulative increase in just half a year has exceeded 160%. From the low point in the second half of 2024, sulfur prices have surged nearly 600%, marking one of the most aggressive rallies in nearly a decade.

I. The Breakthrough of the 10,000-Yuan Level: Why Sulfur Prices Are Soaring

Since early June, the sulfur market has been rising almost daily.

At ports such as Zhenjiang and Dafeng, granular sulfur prices jumped from RMB 7,450–7,500/ton on June 1 to RMB 8,400–8,500/ton on June 3, a gain of nearly RMB 1,000/ton in just two days, with intraday increases reaching up to RMB 750/ton.

Between June 8 and 9, the market accelerated further. On June 8 alone, prices surged as much as 14.52%, lifting benchmark prices to RMB 9,200/ton. By June 9, spot transactions in Shandong and East China had broadly surpassed RMB 10,000/ton.

International prices also continued to rise. ADNOC raised its June official sulfur selling price for India to USD 860/ton (FOB Ruwais), up USD 100/ton from May, setting a historical high.

The surge is not driven by demand growth but by simultaneous supply-side constraints:

Disrupted imports: About 90% of global sulfur comes from oil and gas refining by-products, making supply highly inelastic. The Middle East accounts for roughly 41% of global capacity and nearly 50% of seaborne trade. Due to shipping disruptions in the Strait of Hormuz, China’s imports from the region have fallen sharply. From January to April 2026, sulfur arrivals from the Middle East dropped by 75% year-on-year.

Depleted inventories: As of early June, total sulfur stocks at major Chinese ports such as Nanjing, Fangcheng, and Zhenjiang have fallen to around 900,000 tons, down from 2 million tons a year earlier. This is enough to cover only about three weeks of domestic consumption, signaling a critically tight inventory level.

Domestic allocation priority: Major domestic refineries have prioritized fertilizer producers under supply assurance programs, restricting industrial buyers and further tightening spot availability.

II. Titanium Dioxide Producers Raise Prices, but Market Acceptance Is Weak

Sulfur is a key raw material for sulfuric acid, and producing one ton of sulfuric acid via the sulfuric acid process for titanium dioxide consumes about 3.6 tons of sulfur.

As sulfur prices surge, sulfuric acid costs have risen sharply, significantly increasing titanium dioxide production costs.

In response, titanium dioxide producers have launched successive price hikes.

On June 5, Longbai Group announced its fifth price increase since March: RMB 1,000/ton domestically and USD 150/ton internationally. On the same day, several producers including Titanium Chemical and Shandong Xianghai Titanium Industry followed with similar adjustments.

On June 6, Shandong Dawn Titanium and Qianjiang Fangyuan Titanium also issued price increase notices. On June 8, multiple companies including Kunming/Kuncai Technology, Haifengxin Chemical, Jiangsu Taitai Chemical, Anhui Annada Titanium, Inner Mongolia Guocheng Titanium, and Nanjing Titanium Chemical all announced price hikes.

International players also raised prices. Chemours increased Asia-Pacific prices by USD 250/ton on June 1, marking its third consecutive increase this year with cumulative gains exceeding USD 650/ton. Kronos announced a further USD 325/ton increase effective July 1 for Asia, the Middle East, and Africa.

In total, more than 20 price increase notices were issued within just a few days.

However, higher price announcements have not fully translated into actual market transactions. As of June 8, the benchmark titanium dioxide price stood at around RMB 16,720/ton, down 2.79% from RMB 17,200/ton at the beginning of the month, reflecting weak downstream demand.

In Q1 2026, eight major listed titanium dioxide producers in China saw aggregate net profit fall 46.3% year-on-year. Longbai Group’s net profit dropped 72.74%, while several peers such as Huiyun Titanium and Jinpu Titanium slipped into losses, highlighting a “cost up, profit down” industry squeeze.

A clear divergence is emerging within the sector. Chloride-process titanium dioxide producers, which are less dependent on sulfur-based inputs, are showing relative resilience. In Q1, chloride-process exports rose 39% year-on-year. In contrast, sulfate-process producers remain heavily exposed to rising sulfur costs.

III. The Coatings Industry: The Next Pressure Point in the Value Chain

Around 60% of titanium dioxide consumption goes into coatings. With upstream producers raising prices by more than RMB 4,500/ton cumulatively, coatings manufacturers are now absorbing the cost shock.

Industry estimates suggest titanium dioxide accounts for 20%–30% of total raw material costs in coatings. The recent price increases could add RMB 800–1,000/ton in production costs for many coating manufacturers.

In response, leading coatings companies have already begun adjusting prices. Since March 2026, companies such as Nippon Paint, Three Trees, and Carpoly have implemented multiple rounds of price increases, generally ranging from 5% to 15%.

However, downstream demand remains weak, making it difficult for price increases to fully pass through. Real estate starts and completions have not shown significant recovery, and demand for architectural coatings remains subdued.

Many small and medium-sized coating producers face a dilemma: raise prices and risk losing customers, or absorb costs and suffer losses.

Some companies have reduced raw material procurement, while distributors have begun stockpiling in anticipation of further increases. However, current market strength is largely driven by inventory replenishment rather than genuine demand recovery.

Industry insiders warn that the upcoming September–October fertilizer and construction season will be a critical test. Competition for sulfur between phosphate fertilizer and titanium dioxide industries may intensify further. If real estate demand remains weak, the coatings industry could face a deeper restructuring, with smaller players lacking supply security or process flexibility being the first to exit.

Conclusion

From sulfur to sulfuric acid, from titanium dioxide to coatings, a complete cost transmission chain has clearly formed. However, this chain is now under dual pressure: upstream supply constrained by geopolitics and shipping disruptions, and downstream demand still recovering slowly.

When what was once a by-product becomes a scarce resource, the entire industrial chain is forced to reassess cost structures, supply security, and long-term competitiveness.

As it stands, the sulfur-driven cost shock across the industry is far from over, and its full impact has yet to unfold.