As a key northwestern region, Xinjiang relies on sulfur recovered from oil/gas fields, refineries, and coal chemical plants. In H1 2026, supply remained stable from existing units, but high raw materials prices suppressed downstream operation rate, limiting demand growth. Major producers’ total H1 output was 57,6kt and minor maintenance disruptions with relatively stable supply.
Figure 1 – Xinjiang Monthly Sulfur Production (H1 2026, kt)
| Month | Output |
| Jan | 8 |
| Feb | 7.3 |
| Mar | 8 |
| Apr | 7.7 |
| May | 8 |
| Jun | 9.8 |
On imports, Kazakh sulfur faces rail transport restrictions and tightened export controls; only small truck-borne volumes supplement the local market, with limited outflow to other regions.
New capacity: 2026 is a key construction phase for several large-scale recovery units, but new commissioning within the year is limited. From 2027, concentrated start-ups are expected to significantly boost supply.
On the demand side, local sulfur consumption is dominated by sulfur-burning acid production, serving phosphate fertilizers, titanium dioxide, and fine chemicals. In 2026, Yingtai Energy’s 300 kt/a sulfuric acid unit came online, marginally raising local consumption. However, persistently high sulfur prices caused cost inversion for acid plants; most maintained just-in-time low inventories without active restocking. Regional phosphate chemical scale remains limited, and new-energy sulfuric acid projects are slow to materialize, resulting in modest demand growth.
Overall, Xinjiang’s sulfur market in 2026 is in a calm pre-production transition, with relatively balanced supply-demand. Prices are expected to fluctuate on the high stage, but still lower than imported sources. And price rise will be capped by long-distance transport cost. From 2027, a surge in new recovery capacity will be largely offset by simultaneous downstream acid projects that enhance local digestion capacity, maintaining a high-range fluctuating market outlook.
