Ferrous sulfate heptahydrate

Market Dynamics Intelligence Analysis of Heptahydrate Ferrous Sulfate (FeSO?·7H?O)

I. Price Dynamics
1. National Benchmark Price
As of July 7, 2026, the Echemnet (Shengyishe) benchmark price stood at RMB 1,130.00 per metric ton, representing a 0.30% increase from the beginning-of-month level of RMB 1,126.67/ton on July 4, 2026, and marking a new annual high. This price is 13% higher than the year’s lowest point of RMB 1,000.00/ton recorded on May 17, 2026.

2. Regional Price Disparities
- Shandong Province: Mainstream quotations range from RMB 950–1,200/ton; Binzhou Shengyuan Chemical (90% purity) quotes RMB 950/ton, while its dried-grade product (95% purity) is priced at RMB 680/ton.
- Hubei Province: Wuhan Hengjiu Chemical (≥98% purity) quotes RMB 480–700/ton, with select high-purity grades reaching RMB 680/ton.
- Shanghai Municipality: Shanghai Guoke E-Commerce (98% purity, dried grade) quotes RMB 1,600/ton, reflecting premium demand in high-end segments.
- Henan Province: Domestic heptahydrate ferrous sulfate (90% purity, granular) ex-factory prices in Zhengzhou range from RMB 240–580/ton; Henan Huiyi Hai Environmental Protection (≥90% purity) quotes RMB 480/ton.
- Sichuan Province: Chengdu Rongjiaxin Chemical quotes RMB 1,100/ton.

3. Price Volatility Characteristics
- High-Purity Grades (≥99%): Prices remain stable within the RMB 800–1,050/ton range, supported by robust demand from the new-energy sector—particularly as a precursor for lithium iron phosphate (LFP) cathode materials.
- Low-Purity Grades (88–90%): Intense price competition prevails; the lowest quotation reached RMB 240/ton in December 2025, rebounded to RMB 450–500/ton in February 2026, and may retreat again to RMB 450–500/ton amid recent supply increases.

II. Market Drivers
1. Supply-Side Factors
- Titanium Dioxide (TiO?) By-Product Dominance: Accounts for 65–70% of total supply. In 2025, China’s domestic TiO? production capacity exceeded 4.6 million tons, generating approximately 13.8 million tons of by-product ferrous sulfate. In 2026, TiO? plant operating rates recovered to 75–80%, boosting by-product output; however, tightening environmental regulations have increased compliance costs and accelerated the phase-out of outdated capacity, limiting growth in effective supply.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 mill scale—serving as a key raw material source for ferrous sulfate recovery.
- Chemical Synthesis (Supplementary Source): Accounts for ~15% of supply, led by enterprises such as Yuntianhua and Sinopec, focusing on high-end, high-purity applications.

2. Demand-Side Factors
- New-Energy Sector: Rapid expansion of LFP battery production drives strong demand for high-purity ferrous sulfate. China’s LFP cathode material shipment volume is projected to reach 5.8 million tons in 2026, implying an associated ferrous sulfate demand of approximately 5.1 million tons—exacerbating existing supply-demand imbalances.
- Agricultural Sector: As a micronutrient fertilizer additive, demand grows steadily at an annual rate of 5–7%, with particularly strong uptake in developing countries.
- Water Treatment Sector: Demand for flocculant applications continues growing, though market share faces erosion from newer alternatives such as polyferric sulfate (PFS).
- Industrial Applications: Stable demand persists in electroplating, dyeing & printing, cement production, and other traditional sectors.

3. Structural Imbalance
- High-Purity Shortage: Prices spiked to RMB 1,050/ton in December 2025 and have remained elevated in 2026 due to sustained new-energy demand.
- Low-Purity Overcapacity: Some manufacturers quote as low as RMB 480/ton, intensifying price wars.

III. Competitive Landscape
1. Intra-Industry Competition
- Large number of competitors; severe product homogenization, especially among low-purity offerings, resulting in fierce price-based competition.
- Top five TiO?-by-product producers—including Longbai Group and CNNC Titanium White—collectively command 57% of this segment’s market share. In the chemical synthesis segment, Yuntianhua and Lubei Chemical dominate.

2. Bargaining Power Along the Value Chain
- Downstream Purchasers: Exert pricing pressure via tendering processes; although Q1 2026 winning bid prices remain undisclosed, downward pricing pressure is anticipated.

IV. Short-Term Outlook (1–3 Months)
1. Continued Price Divergence
- High-Purity Grades: Prices expected to hold firm in the RMB 800–1,050/ton range, underpinned by resilient new-energy demand.
- Low-Purity Grades: Prices may decline further to RMB 450–500/ton amid expanding supply.

2. Supply-Demand Dynamics
- New-Energy Segment: Demand continues rising sharply, amplifying demand for high-purity ferrous sulfate and widening the supply-demand gap.
- Traditional Segments: Steady demand in water treatment and agriculture is partially offset by substitution effects from advanced flocculants, potentially leading to modest market share erosion.

3. Industry Consolidation
- Stricter environmental policies are accelerating the exit of SMEs, enhancing industry concentration. The combined market share of the top ten producers is projected to surpass 45%.