Magnesium Sulfate: Recent Market Intelligence Report

I. Price Trends
- Heptahydrate Magnesium Sulfate:
- As of May 26, 2026, the Base Price (as quoted by Echemi.com) stood at RMB 1,082.50 per metric ton, representing a 4.76% increase from the beginning-of-month price of RMB 1,033.33 per metric ton, and remaining within the annual high range (annual maximum: RMB 1,100/ton; annual minimum: RMB 707.50/ton).
- Prices remained stable between RMB 1,033.33–1,082.50/ton during the period from May 15 to May 26, exhibiting minimal volatility.
- Industrial-Grade Magnesium Sulfate:
- Significant regional price divergence observed: Fujian Province’s premium-grade product quoted at RMB 1,000/ton; Henan Province’s industrial-grade (98% purity) at RMB 850/ton; Shandong Province’s anhydrous magnesium sulfate (99.5% purity) at RMB 600/ton.
- Average May price approximated RMB 1,150/ton, with markedly narrowed volatility compared to April (RMB 930–2,662.50/ton).

II. Supply-Demand Dynamics
- Supply Side:
- Domestic production capacity is increasingly concentrated among leading enterprises, with CR5 (combined market share of top five producers) reaching 47%; the number of enterprises with annual capacity exceeding 100,000 tons has increased to 18.
- Enterprises in resource-rich provinces—such as Shandong and Liaoning—maintain stable operating rates. For instance, Zibo Yuhang Chemical Co., Ltd. (capacity: 350,000 tons/year) achieved actual output of 314,000 tons in 2024, reflecting a capacity utilization rate of 93%.
- Demand Side:
- Agricultural applications account for 32% of total demand; feed-grade usage constitutes 45%; industrial and pharmaceutical applications collectively represent 23%.
- Demand growth for high-value-added products—including pharmaceutical-grade and electronic-grade magnesium sulfate—is notably robust, driving structural upgrading across the industry.

III. Regional Market Characteristics
- Jilin Province:
- Winter transportation requires special attention to freeze- and moisture-protection measures; packaging integrity (e.g., laminated woven bags) and warehouse conditions have become core procurement criteria.
- Liaoning-based suppliers—including Yingkou Shenghong Chemical Co., Ltd.—serve as primary suppliers to the Jilin market, leveraging their geographic advantages (proximity to the Harbin–Dalian Railway and Shenyang–Dalian Expressway), resulting in pronounced logistics cost advantages.
- Export Market:
- In 2024, export volume reached 280,000 metric tons, accounting for 25.5% of China’s total magnesium sulfate exports, primarily destined for the United States, Thailand, and Vietnam.
- Demand growth in Southeast Asia and the Middle East leads globally, making the export market a focal point of enterprise competition.

IV. Cost and Profitability
- Raw Material Costs:
- Fluctuations in magnesite ore and sulfuric acid prices directly impact production costs. Enterprises employing halogen brine extraction from Qinghai salt lakes (e.g., a certain Qinghai-based producer) enjoy significant cost advantages.
- Profit Margins:
- Industrial-grade product prices span RMB 850–2,000/ton; high-purity grades (e.g., pharmaceutical-grade) command substantial value premiums. Firms are enhancing profitability through technological upgrades—such as continuous crystallization processes.

Analysis & Outlook
1. Enhanced Price Resilience:
- Short-term pricing remains supported by seasonal agricultural top-dressing demand, sustaining elevated levels. Long-term, rising demand for pharmaceutical-grade products and expanding export markets will help offset volatility risks associated with industrial-grade pricing.
2. Optimized Supply-Demand Structure:
- Leading enterprises are consolidating market leadership via integrated vertical operations—from raw material mining to deep processing (e.g., Zibo Yuhang). Smaller players are shifting toward niche segments (e.g., feed-grade or de-icing additive applications) to pursue differentiated competitiveness.
3. Intensifying Regional Divergence:
- Northern regions—including Jilin—are seeing increased local supply penetration due to logistical constraints and climatic challenges. Meanwhile, coastal enterprises are expanding market share through export-oriented advantages.

Future Projections
1. Price Trend:
- Heptahydrate magnesium sulfate prices are expected to remain stable within RMB 1,050–1,100/ton during Q3 2026, with a potential modest adjustment to RMB 1,000–1,050/ton in Q4, following seasonal agricultural demand softening.
2. Demand Composition:
- The combined share of pharmaceutical-grade and electronic-grade products is projected to rise from 23% in 2024 to 35% by 2030, exerting upward pressure on industry-average pricing.
3. Competitive Landscape:
- Industry concentration is set to further increase, with CR10 (top ten producers’ combined capacity share) potentially exceeding 60%. Stricter environmental regulations will accelerate the phase-out of outdated capacity, while firms demonstrating green manufacturing capabilities—including waste-heat recovery and effluent recycling—will gain enhanced market share.