1. Overall Market
The Golden‑September peak season has arrived. Following a short‑term adjustment, the market has stabilized. The market features firming at low levels with minor rebounds and corrections at high levels. Price gaps between equivalent‑grade products have narrowed, with prices showing a mild upward bias overall.
2. Divergence on the Supply Side
Manufacturers with low‑price product lines have solid order backlogs and low inventories. Price‑bargaining room has been closed, and modest price hikes have been implemented. Distributors and end‑users built up inventories at low price points, shifting market pressure to producers.
Orders placed in early September may partially erode genuine demand for October‑November. The peak season delivers limited stimulus to demand; market conditions will only be marginally better than the off‑season. Since Taihai issued its price‑increase letter, shipment volumes have improved. Some major producers expect price hikes, while many others remain wait‑and‑see.
3. Two Key Reasons for the Wait‑and‑See Sentiment
① Sulfuric acid feedstock prices have declined while by‑product ferrous sulfate prices have risen. Producers have cost buffers and can withstand further price declines should they occur.
② Manufacturers hope the market will bottom out and trend higher.
