Recent Market Dynamics Intelligence for Ferrous Sulfate

I. Price Dynamics

1. National Price Overview
- As of May 25, 2026, the Business Network’s benchmark price for heptahydrate ferrous sulfate stands at RMB 1,110.00 per ton, representing a 0.30% increase from the beginning-of-month level (RMB 1,106.67 per ton) and reaching an annual high.
- On May 17, 2026, the ex-factory prices for heptahydrate ferrous sulfate (90% purity, granular) in Zhengzhou City, Henan Province, ranged between RMB 240–580 per ton, with significant price variation across brands and specifications.

2. Regional Price Disparities
- Shandong Province: Binzhou Shengyuan Chemical Technology Co., Ltd. quotes RMB 950 per ton for heptahydrate ferrous sulfate (90% purity) and RMB 680 per ton for dried-grade product (95% purity).
- Hubei Province: Wuhan Hengjiu Chemical Co., Ltd. offers industrial-grade ferrous sulfate (≥98% purity) at RMB 480 per ton; select manufacturers charge up to RMB 680 per ton for high-purity grades.
- Shanghai Municipality: Shanghai Guoke E-Commerce Co., Ltd. quotes RMB 1,650 per ton for dried ferrous sulfate (98% purity), reflecting strong demand in premium segments.
- Sichuan Province: Chengdu Rongjiaxin Chemical Products Co., Ltd. quotes RMB 1,100 per ton for ferrous sulfate.

3. Price Volatility Characteristics
- High-Purity Grades (≥99%): Prices remain stable within the RMB 800–1,050 per ton range, supported by robust demand from the new energy sector—particularly as a precursor material for lithium iron phosphate (LFP) cathodes.
- Low-Purity Grades (88–90%): Intense price competition prevails; the lowest reported quotation was RMB 240 per ton in December 2025, rising to RMB 450–500 per ton in February 2026; recent supply increases may push prices back down to the RMB 450–500 per ton range.

II. Market Driving Factor Analysis

1. Supply-Side Factors
- Titanium Dioxide By-Product Dominance: Accounts for 65–70% of total supply. In 2025, China’s titanium dioxide production capacity exceeded 4.6 million tons, generating approximately 13.8 million tons of by-product ferrous sulfate. In 2026, titanium dioxide plant operating rates rebounded to 75–80%, increasing by-product supply; however, stricter environmental regulations have raised production costs and accelerated the exit of outdated capacity, limiting growth in effective supply.
- Steel Pickling Waste Recovery: Contributes ~20% of supply. In 2024, China’s crude steel output totaled 1.02 billion tons, yielding an estimated 15.3 million tons of recovered iron oxide scale.
- Chemical Synthesis (Supplementary Source): Accounts for ~15% of supply, produced by enterprises such as Yuntianhua and Sinopec, primarily targeting high-end markets.

2. Demand-Side Factors
- New Energy Sector: LFP battery expansion drives demand for high-purity ferrous sulfate. Domestic LFP material shipments are projected to reach 5.8 million tons in 2026, implying corresponding ferrous sulfate demand of approximately 5.1 million tons—widening the supply-demand gap.
- Agricultural Sector: Used as a micronutrient fertilizer additive, demand grows annually by 5–7%, with particularly strong uptake in developing countries.
- Water Treatment Sector: Demand for coagulants is growing, especially for heavy-metal-laden wastewater treatment; however, substitution by newer alternatives such as polyferric sulfate is exerting market diversion pressure.
- Industrial Applications: Steady demand persists in electroplating, dyeing & printing, and cement manufacturing sectors.

3. Structural Imbalances
- High-Purity Shortage: Prices surged to RMB 1,050 per ton in December 2025 and remain elevated in 2026, sustained by new energy demand.
- Low-Purity Overcapacity: Some producers quote as low as RMB 480 per ton, intensifying price wars.

III. Competitive Landscape

1. Intra-Industry Competition
- Numerous competitors operate in the market, with severe product homogenization and intense pricing competition among low-purity suppliers.
- The top five titanium-dioxide-by-product producers (e.g., LB Group, CNNC Titanium Industry) command 57% of market share; in the chemical synthesis segment, Yuntianhua and Lubei Chemical dominate.

2. Bargaining Power Across the Value Chain
- Downstream Purchasers: Leverage tender-based procurement to suppress prices; although winning bid prices for Q1 2026 remain undisclosed, downward pricing pressure is anticipated.

IV. Analysis, Outlook & Forecast

1. Price Trend Forecast
- High-Purity Grades: Supported by resilient new energy demand, prices are expected to remain firm; however, potential new capacity ramp-ups warrant close monitoring.
- Low-Purity Grades: Fierce competition will likely sustain price stability or trigger modest declines in the near term. Longer term, tightening environmental standards and continued elimination of outdated capacity may facilitate gradual price recovery.

2. Supply-Demand Outlook
- Supply Side: Rising titanium dioxide operating rates and supplemental chemical synthesis will boost overall ferrous sulfate output, but environmental compliance requirements and structural capacity reduction will constrain effective supply growth.
- Demand Side: New energy demand will continue expanding; agricultural and water treatment demand will remain steady; industrial demand may improve further alongside broader economic recovery.

3. Industry Development Trends
- Increasing Share of High-Purity Products: Accelerated LFP battery deployment will sustain strong growth in high-purity ferrous sulfate demand, raising its share of total market volume.
- Rising Industry Concentration: Stricter environmental regulations and technological advancement will consolidate the industry. Leading enterprises will enhance competitiveness via R&D investment and cost optimization, while smaller players face mounting operational pressures.
- Expansion into Emerging Application Areas: Ferrous sulfate applications will broaden, notably in emerging markets and developing countries—including steelmaking, agriculture, pharmaceuticals, and other niche sectors.