Sulfur prices rallied sharply and then corrected downward in June. Supported by volatile international geopolitics and consistently low port inventories, sulfur Zhenjiang Port price soared from CNY7,480/t to CNY11,750/t.Subsequently, high raw material costs pressured downstream sectors, dampening production willingness and rigid demand procurement. Prevailing wait-and-see sentiment and sluggish real transactions triggered a rapid price fallback. In late June, continuous news regarding US-Iran peace talks further weakened market participation confidence.The Zhenjiang port price closed at CNY8,900/t at month-end. Domestic sulfur output dropped 18.66% MoM to 815.7kt. Domestic port spot inventory decreased 27.34% MoM to 745.6kt by late June, maintaining a tight supply pattern.As the Middle East tension is turbulent again, sulfur price may rebound.
Amsul: in Q2 2026, domestic Amsul price reversed gains and kept falling. By Jun.26, Shandong caprolactam-grade material dropped to CNY1,250-1,300/t (-CNY450-500/t from early April). Coking-grade fell to CNY1,003/t, with some deals below CNY1,000. The core driver was weak international urea. Eased US-Iran tensions dragged urea prices lower. High production persisted: caprolactam run rate at 69% and coking at 75%. Yet downstream compound fertilizer output stayed at merely 30%, with only rigid buying.
Urea spot price is CNY1,740/t. Futures: UR2609 fluctuates at CNY1,730-1,850/t. Urea weekly output is 1,508kt with a high operation rate at 90.32%(+1.07%). In-factory inventory is 1,133.6kt(+47.8kt), port inventory is 145kt(-5kt WoW). Compound fertilizer operating rate remained at only 30%, and industrial purchasing stayed sluggish. Weak international urea prices also limited export volumes. The market lacks bullish support and will remain under pressure temporarily.
Yellow phosphorus retreated from high levels. Supported by safety production limits, prices in Yunnan, Guizhou and Sichuan stood at CNY33,500/t 2 weeks ago. Later turned weak after June 22 and dropped to CNY31,460/t (-CNY2,000/t). End users only bought rigidly. Falling sulfur prices triggered a price correction.
