Nitric Iron Commodity Market Intelligence Report (May 27, 2026)

I. Price Dynamics
1. Industrial-Grade Nitric Iron
- Shandong Region:
- Jinan Junteng Chemical Co., Ltd.: RMB 3,400/ton (data as of December 31, 2024; not recently updated, but serves as a regional benchmark reference).
- Shandong Xinyida Chemical Technology Co., Ltd.: RMB 3,200/ton (98% purity, data as of December 31, 2024).
- According to Gaide Chemical Network, a supplier in Linyi, Shandong quoted RMB 11,000/ton (minimum order quantity ≥1 ton) on May 12, 2026; however, this price likely reflects a special specification or bulk-negotiated terms and deviates significantly from conventional industrial-grade pricing.

2. Battery-Grade Nitric Iron
- Business Network (Shengyisi) Benchmark Price:
- As of May 20, 2026: No specific value disclosed; however, it was noted that pricing is influenced by “account period cost (K)” and “l(fā)ogistics/brand/regional price differentials (C).”
- As of May 13, 2026: Similarly, no explicit figure provided; emphasis was placed on the multi-dimensional adjustment coefficients embedded in the pricing model.
- Historical Trend: Battery-grade nitric iron typically commands a premium over industrial-grade due to higher purity requirements (e.g., for lithium battery cathode material applications); however, no recent quantitative spread has been disclosed.

3. Small-Batch Retail Prices
- Gaide Chemical Network Data:
- Jinan Chuangshi Chemical Co., Ltd.: RMB 10.5/kg (updated May 15, 2026).
- Nantong Runfeng Petrochemical Co., Ltd.: RMB 5.5/kg (updated May 15, 2026).
- Hubei Xinjiecheng Chemical Technology Co., Ltd.: RMB 200/kg (updated May 9, 2026; likely reflecting high-purity or specialty-application product).

II. Market Driving Factor Analysis
1. Supply-Demand Dynamics
- Supply Side:
- Major production bases include Shandong, Hubei, and Sichuan provinces; numerous suppliers exist, yet quotation disparities are substantial (e.g., RMB 11,000/ton in Linyi, Shandong vs. RMB 10.5/kg at Jinan Chuangshi), reflecting differences in specifications, order volumes, or distribution channels.
- Gaide Chemical Network reports total Shandong supply volume reached 1,000 tons in May 2026, indicating ample supply.
- Demand Side:
- Industrial-grade demand remains stable but lacks growth momentum, primarily driven by traditional applications such as catalysts, mordants, and analytical reagents.
- Battery-grade demand is accelerating, propelled by the new energy vehicle (NEV) and energy storage sectors; however, no specific quantitative demand data was disclosed recently.

2. Cost & Policy Factors
- Cost Structure:
- Primary raw materials are nitric acid and iron salts. Recent nitric acid prices have exhibited minimal volatility (no direct data disclosed; however, stable urea and ammonium bicarbonate prices in the fertilizer sector indirectly indicate balanced nitrogen-compound markets).
- Energy costs (e.g., electricity, steam) exert limited influence on production economics and are not primary price drivers.
- Policy Environment:
- Stricter environmental regulations have prompted some small-capacity producers to exit the market, while leading enterprises have increased capacity utilization—resulting in an overall optimization of supply structure.
- No major changes to export policies have occurred; domestic market supply remains predominantly self-sufficient.

3. Influence of Related Products
- Fertilizer Industry:
- Urea and ammonium bicarbonate prices remained unchanged between the second and third weeks of May 2026, signaling balanced supply-demand conditions in the nitrogen compound segment and thus modest cost pressure on nitric iron.
- Lithium Battery Materials:
- As a precursor for cathode materials, battery-grade nitric iron demand closely tracks the health of the lithium battery industry. Recent price fluctuations in the lithium battery supply chain (e.g., declining lithium carbonate prices) may eventually transmit upstream to materials like nitric iron; however, the extent and timing of such impact require further observation.

III. Price Forecast
1. Short-Term (1–3 Months)
- Industrial-Grade Nitric Iron:
- Prices expected to remain stable, with a projected fluctuation range of RMB 3,200–3,500/ton (Shandong regional benchmark).
- Rationale: Balanced supply-demand dynamics, stable raw material costs, and lack of significant shifts in traditional end-use demand.
- Battery-Grade Nitric Iron:
- Prices may rise modestly by approximately 3–5%.
- Rationale: Sustained growth in NEV demand tightens battery-grade supply; however, broader chemical market stability constrains upside potential.

2. Medium-Term (6–12 Months)
- Industrial-Grade Nitric Iron:
- Prices may experience a slight upward adjustment, with increases capped at ~8%, primarily driven by tightening environmental compliance measures leading to phased-out small-scale capacities.
- Battery-Grade Nitric Iron:
- Prices are expected to follow a “phase-wise increase followed by correction” pattern, influenced by lithium battery industry expansion cycles; annual average prices are forecast to rise 10–15% year-on-year.
- Risk Factor: Should lithium battery industry overcapacity emerge or demand growth decelerate, the anticipated price appreciation may narrow.

IV. Risk Warnings
1. Demand Underperformance: A slowdown in NEV sales growth could weaken demand for battery-grade nitric iron.
2. Raw Material Price Volatility: Significant increases in nitric acid or iron salt prices could be passed through to downstream users—though near-term risk remains low.
3. Policy Shifts: Adjustments to environmental production curbs or export control policies could disrupt supply-side configurations.