Demand to stimulate the acid city in Shandong ushered up
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At the start of the week, the domestic acid market remained relatively stable, with slight price fluctuations observed in certain regions. Notably, Shandong Yanggu Xiangguang Copper Industry Co., Ltd. increased its offer price by RMB 10 per ton, primarily due to a sharp rise in the price of **copper concentrate**, which has led to lower factory procurement enthusiasm. As a result, many companies opted for smelting acid as their primary raw material for production.
Additionally, Luxi Chemical and Jinan Yuxing Chemical Co., Ltd. have started to collect **copper concentrate** from outside Yanggu, with daily processing reaching approximately 2,000 tons. This has helped alleviate the pressure on Yanggu’s inventory levels. Furthermore, the Dongying Complex is undergoing shutdown and maintenance on September 1st, and this situation is expected to lead to an increase in price inventory in the coming weeks.
Another key factor is that the Lubei compound fertilizer plant resumed operations on the 20th, requiring 20,000 tons of imported materials for production. These combined factors are providing strong support for the acid market, making the recent price adjustment in Yanggu an inevitable trend.
According to market analysis, the rising price of **copper concentrate** has put pressure on downstream sulphonic acid plants. The low cost of smelting acid has gained market traction, leading some sulphonic acid plants to limit production or even shut down temporarily in order to reduce inventory and sales pressure. Meanwhile, the demand for sulphite has declined slightly.
However, with the increasing demand for smelting acid from the fertilizer industry, the acid market is expected to see temporary stability in the coming period. Overall, the market dynamics suggest a shift toward more sustainable pricing as supply and demand continue to balance out.
