Zinc sulfate heptahydrate

Zinc Sulfate Heptahydrate Market Intelligence Report (July 29, 2026)

I. Price Trends
1. Benchmark Price
- According to Echemi (Shengyishe), the benchmark price of zinc sulfate heptahydrate on July 28, 2026, stood at RMB 5,125 per metric ton—unchanged from the beginning of the month and at its annual high (annual maximum: RMB 5,125/ton; minimum: RMB 4,825/ton; median: RMB 4,975/ton).
- Regional price divergence is pronounced:
- Southern China market: inclusive of VAT—RMB 7,400–7,900/ton; exclusive of VAT—RMB 7,100–7,400/ton (Feed Industry Information Network, July 22);
- Northern China market shows significant variation: e.g., Gongyi Hengyi Water Treatment Co., Ltd. (Zhengzhou, Henan) quoted RMB 8,800/ton; Hunan Yongshuo New Materials Technology Co., Ltd. (Chenzhou, Hunan) quoted RMB 9,500/ton; Hubei Qibajiu Chemical Co., Ltd. (Wuhan, Hubei) quoted RMB 4,500/ton.

2. Retail Pricing
- As reported by ChemNet (GaiDe Chemical Network) on July 23, retail prices for zinc sulfate heptahydrate were highly tiered:
- ≥1 kg: RMB 24/kg (~RMB 24,000/ton);
- ≥25 kg: RMB 12/kg (~RMB 12,000/ton);
- ≥1,000 kg: RMB 3/kg (~RMB 3,000/ton), reflecting substantial volume-based negotiation leverage.

II. Market Drivers
1. Raw Material Cost Pressure
- Zinc sulfate production relies on zinc ore, metallic zinc, and industrial waste streams. Recent volatility in zinc prices and tightening environmental regulations have elevated raw material costs, supporting sustained high pricing.
- The Feed Industry Information Network notes that upstream producers operate at moderate capacity utilization, yet order volumes have increased notably compared to early-year levels—tight supply-demand balance intensifies cost pass-through.

2. Regional Supply-Demand Imbalance
- The southern market commands significantly higher prices due to robust demand from feed and fertilizer sectors, compounded by higher logistics costs.
- Some northern enterprises (e.g., Hubei Qibajiu Chemical) adopt low-price strategies to gain market share, highlighting intense regional competition.

3. Impact of Substitutes
- Alternative zinc salts—including zinc sulfate monohydrate—exhibit price fluctuations that may divert some demand; however, zinc sulfate heptahydrate retains strong demand inorganicity in agricultural applications (e.g., micronutrient supplementation), underpinning its structural demand resilience.

III. Industry Developments
1. Capacity and Export Dynamics
- China remains the world’s largest producer of zinc sulfate. In 2022, domestic output reached 6.124 million tons, with exports totaling 199,500 tons—primarily destined for the U.S., Brazil, and Australia.
- Export markets remain stable recently; however, domestic regional imbalances in supply and demand continue to drive price fragmentation.

2. Policy & Environmental Regulation
- National policies promoting high-quality development of animal husbandry emphasize safe, efficient feed additives—zinc sulfate, as a compliant product, benefits from rising regulatory-driven demand.
- Stricter environmental enforcement accelerates the phase-out of outdated production capacity, elevating industry concentration and strengthening pricing power among leading enterprises.

IV. Analysis & Outlook
1. Short-Term Trend
- **Price Consolidation at Elevated Levels**: Sustained high raw material costs, regional supply-demand mismatches, and tightening environmental oversight collectively support price stability near highs—but downstream resistance to further increases caps upside potential.
- **Intensifying Regional Divergence**: The southern market is likely to sustain premium pricing amid strong demand; conversely, heightened competition in the north may trigger modest downward adjustments.

2. Long-Term Outlook
- **Demand Growth**: Standardization and upgrading in feed and fertilizer industries—alongside emerging demand from new energy applications (e.g., zinc-based batteries)—will foster steady long-term growth in zinc sulfate demand.
- **Capacity Optimization**: Rising industry concentration and broader adoption of advanced manufacturing technologies may gradually reduce production costs, alleviating pricing pressure.

V. Forecast & Recommendations
1. Price Forecast
- Next one month: Benchmark price expected to range between RMB 5,000–5,200/ton; southern market (VAT-inclusive): RMB 7,000–7,800/ton; northern market: RMB 4,500–5,000/ton.
- Key Risks: Sharp fluctuations in zinc prices; accelerated environmental regulation enforcement; sudden shifts in downstream demand.

2. Strategic Recommendations
- **Downstream Users**: Procure according to actual needs. In the southern region, consider extending inventory cycles moderately (1–2 months); in the north, adopt a wait-and-see stance pending possible price corrections.
- **Traders**: Monitor inter-regional price spreads and leverage logistics advantages for arbitrage opportunities.
- **Producers**: Optimize raw material procurement strategies and enhance process efficiency to mitigate cost pressures.