Recent Market Intelligence Report on Thiourea

I. Price Trends
- Recent Price Fluctuations:
- On May 25, 2026, the Business Society’s benchmark price for thiourea stood at RMB 9,880.00 per ton, representing a 5.76% decline from the beginning-of-month price of RMB 10,483.33 per ton on May 8.
- The benchmark price remained stable at RMB 9,880.00 per ton on May 19, indicating price stabilization in recent days.
- On May 8, the benchmark price reached RMB 10,483.33 per ton—the highest level observed recently.

- Historical Price Comparison:
- Thiourea prices exhibited a pattern of rising then falling throughout May 2026, declining from RMB 10,483.33 per ton at the start of the month to RMB 9,880.00 per ton by month-end.
- Compared to the full-year 2024 average price range of RMB 6,500–12,500 per ton, current prices remain relatively high.

II. Market Supply and Demand
- Supply Situation:
- China is the world’s largest producer of thiourea, accounting for over 30% of global output.
- Recent operating rates at thiourea manufacturing facilities have remained stable; however, some producers face mounting cost pressures due to rising raw material costs and increased environmental compliance expenditures.

- Demand Situation:
- Thiourea finds broad application across pharmaceuticals, agrochemicals, and rubber industries, with pharmaceutical demand constituting approximately 40%, agrochemicals about 20%, and rubber roughly 15% of total demand.
- Demand for thiourea is gradually expanding into emerging sectors such as new energy and semiconductors, driven by rapid development in these fields.

III. Cost Factors
- Raw Material Costs:
- Key raw materials for thiourea include sulfur and urea. Sulfur prices have surged approximately 80% since the beginning of 2026, exerting significant upward pressure on thiourea production costs.
- Urea and other raw material prices have also risen, further elevating overall production costs.

- Environmental Compliance Costs:
- Stricter environmental regulations require increased investment in pollution control and sustainability measures, adding to manufacturers’ operational costs.

IV. Relevant Policies and Market Environment
- Policy Support:
- The Chinese government attaches great importance to the healthy and sustainable development of the thiourea industry and has introduced a series of supportive policies—including industrial guidance and tax incentives.
- For example, qualified thiourea manufacturers are eligible for a 50% VAT rebate upon collection, and the R&D expense super-deduction ratio has been raised to 100%.

- International Trade Environment:
- Chinese thiourea enjoys strong competitiveness in global markets, with export volumes continuing to grow steadily.
- Nevertheless, international trade frictions and tariff adjustments may pose certain risks to thiourea imports and exports.

Analysis and Assessment

1. Price Trend Analysis:
- Recent downward price movement reflects combined impacts of rising input costs and evolving supply-demand dynamics.
- In the near term, thiourea prices are expected to remain volatile and trend downward, influenced by persistent cost pressures and shifting supply-demand balances.

2. Supply-Demand Analysis:
- Overall, the thiourea market maintains a balanced supply-demand relationship; however, growing demand from emerging sectors may gradually reshape this equilibrium.
- With accelerated growth in new energy and semiconductor industries, demand for thiourea in these applications is projected to rise continuously.

3. Cost Factor Analysis:
- Escalating raw material costs and heightened environmental compliance expenses represent primary challenges for thiourea producers.
- Enterprises must enhance competitiveness through technological innovation and industrial upgrading to mitigate cost pressures.

Forecast

1. Price Forecast:
- In the short term, thiourea prices are likely to continue experiencing volatility and downward pressure due to cost and supply-demand factors.
- Over the longer term, expanding demand from emerging sectors—coupled with continuous technological advancement—may stabilize prices and support gradual recovery.

2. Supply-Demand Forecast:
- The thiourea market is expected to maintain overall supply-demand balance; however, increasing demand from new energy, semiconductors, and related sectors may drive structural shifts in market dynamics.
- Thiourea applications in new energy and semiconductor fields are anticipated to broaden progressively, emerging as key growth drivers.

3. Industry Development Trend Forecast:
- Amid tightening environmental regulations and rising public environmental awareness, green and eco-friendly thiourea products are expected to become mainstream.
- Technological innovation and industrial upgrading will serve as pivotal drivers for the sustained development of the thiourea industry.