Raw Material Prices Soar 100%! Explosion Triggers Global Supply Alert!

Strontium Carbonate Prices Double After Iran Explosion Triggers Supply Crisis

Explosion Triggers "Supply Disruption Crisis", Raw Material Prices Surge Over 100%!

In april, a severe explosion occurred at Iran’s Port of Abbas, causing major disruption to the export logistics chain for celestite (the key raw material for strontium carbonate). Although China holds about 25% of the world’s celestite reserves, the ore grade is relatively low (35–60%), and still requires large-scale imports. Iranian celestite generally has an ore grade of over 85%, making it a key import source for China. The explosion at Port Abbas has caused violent price fluctuations in the strontium carbonate market.

Recently, the price of strontium carbonate has shown explosive growth, skyrocketing from RMB 8,000/ton in September 2024 to RMB 16,000/ton in June 2025. Some traders are even quoting over RMB 18,000/ton — an increase of more than 100%!

Additionally, international prices have risen in tandem. In the European market, strontium carbonate prices jumped from $1,200/ton to $2,400/ton, placing immense cost pressure on downstream industries.

Production Halts + Policy Restrictions! Severe Supply Shortages Expected

The sharp price rise of strontium carbonate from 2024 to 2025 is mainly due to compounded supply fluctuations and regulatory constraints.

• Stricter environmental requirements: On March 8, 2024, the Office of Emergency Management issued the "Second Batch of Obsolete Hazardous Chemical Production Processes and Equipment Elimination Catalogue", mandating that strontium carbonate factories using the intermittent carbonization process must complete upgrades within a year (i.e., before March 2025). This is accelerating the phase-out of domestic capacity.
• Iranian ore supply disrupted: Celestite shipments are obstructed due to the Port of Abbas explosion.
• Bankruptcy of major domestic strontium carbonate producer: Hebei Xinji Chemical Group filed for bankruptcy reorganization on October 21, 2024, due to surging environmental costs and fierce market competition. The company had an annual capacity of 60,000 tons, accounting for 28.84% of China's domestic capacity.
• International supply disruption from major player: Mexico’s Kandelium suffered plant and inventory destruction due to fires and strong winds in the Monterrey metropolitan area. Recovery is expected to take 6–12 months, affecting 40,000 tons of strontium carbonate capacity. Downstream customers have been notified of halted supply. In 2024, China imported 13,000 tons of strontium carbonate from Mexico. Typically, March to May is peak import season, so Kandelium’s shutdown will significantly affect China's supply.

Price May Break RMB 20,000/ton? A New Round of Market Boom Incoming

As of December 2024, China’s total strontium carbonate production capacity stood at approximately 205,000 tons, with a highly concentrated industry structure. Major producers include Hebei Xinji Chemical, Shenzhou Jiaxin Chemical, Chongqing Qinglong Fine Strontium Salt Chemical, Chongqing Dazu Hongdie Strontium, and Luoyang Lida Chemical.

However, due to rising environmental protection costs and intense competition, some enterprises have entered shutdown or production reduction phases, exacerbating supply disruptions.

As of the second week of 2025, several companies — including Hebei Xinji Chemical Group Co., Ltd., Ningxia Dansk Chemical Co., Ltd., Luoyang Lida Chemical Co., Ltd., and Guizhou Hongkai Chemical Co., Ltd. — have halted or reduced production for technical transformation. This may significantly impact supply.

Industry insiders believe the strontium carbonate market may enter a boom period. On one hand, domestic production is halted; on the other, overseas raw material imports may be cut off. These supply-side force majeure events could fuel continued price increases. Strontium carbonate prices may likely surpass RMB 20,000/ton.