Dry ferrous sulfate

Daily Market Intelligence on Ferrous Sulfate (Dried)I. Price Trends1. **Domestic Market**: - Recent market prices for dried ferrous sulfate have shown a slight upward fluctuation, with mainstream transaction prices ranging from 800 to 1,200 RMB/ton. Prices vary slightly in different regions due to supply and demand differences. - Prices are trending toward the higher end in the East and South China regions due to strong demand, while prices remain relatively stable in North and Central China.2. **International Market**: - Growing demand in Southeast Asia and South Asia has pushed export prices up slightly, with FOB prices approximately at USD 150-180/ton. - Due to stricter environmental policies, import demand in the European market is limited, resulting in minimal price fluctuations.II. Supply and Demand Situation1. **Supply Side**: - Domestic major production enterprises maintain a high operating rate with stable output. However, some small-scale plants have suspended operations due to environmental inspections, leading to a slight tightening of short-term supply. - Prices for raw materials such as pyrite and sulfuric acid remain firm, providing strong cost support. Some enterprises are increasingly inclined to raise prices.2. **Demand Side**: - Downstream demand in industries such as water treatment, feed additives, and fertilizers is growing steadily. In particular, the water treatment sector has seen significant demand growth driven by environmental policies. - The export market is active, with strong demand in regions such as Southeast Asia and India, increasing export orders for domestic enterprises.III. Costs and Profits1. **Costs**: - Pyrite prices remain high due to tight ore resources, and sulfuric acid prices are also strong due to tight supply, driving up the production costs of dried ferrous sulfate. - Rising energy costs (such as coal and natural gas) further compress enterprise profit margins.2. **Profits**: - The industry's average gross margin remains at 10%-15%. Enterprises with better cost control enjoy slightly higher profits, but overall profit pressure persists.IV. Policies and Environmental Regulations1. **Domestic Policies**: - Environmental supervision continues, leading to the suspension and rectification of non-compliant enterprises. This increases industry concentration, benefiting compliant leading enterprises. - Policy dividends in the water treatment industry are being realized, driving increased demand for dried ferrous sulfate.2. **International Policies**: - An increase in infrastructure construction projects in Southeast Asia and South Asia is boosting demand for fertilizers and water treatment agents, improving the export market outlook. - European carbon tariff policies may affect exports, but the short-term impact is limited.V. Analysis and Judgments1. **Short Term (1-3 months)**: - Prices are expected to remain at high levels with fluctuations. Supported by costs and growing demand, a slight increase is more likely. - On the supply side, environmental inspections and raw material tightness make it difficult to significantly increase supply in the short term, supporting prices.2. **Medium Term (3-6 months)**: - If downstream demand in water treatment and feed industries remains strong, prices may rise further. However, attention should be paid to the risk of raw material price fluctuations. - If the export market remains active, it will alleviate domestic supply pressure and stabilize prices.3. **Long Term (6-12 months)**: - Gradual release of industry capacity expansion may increase supply pressure, posing a risk of price correction. - Continued tightening of environmental policies will drive industry consolidation, increasing the market share of leading enterprises and potentially narrowing the range of price fluctuations.VI. Forecasts1. **Price Forecast**: - Short-term prices: 850-1,250 RMB/ton (domestic), USD 155-185/ton (export FOB). - Medium-term prices: If demand remains strong, domestic prices may break through 1,300 RMB/ton, with export prices adjusting accordingly.2. **Supply and Demand Forecast**: - Supply side: Operating rates will remain high, but environmental inspections and raw material tightness may limit output growth. - Demand side: Demand growth in water treatment and feed industries is certain, and the export market will remain active.3. **Risk Warnings**: - Significant fluctuations in raw material prices, stricter-than-expected environmental policies, and lower-than-expected downstream demand may trigger price corrections.