Zinc Sulfate Market Intelligence Report (May 27, 2026)

I. Domestic Market Price Dynamics
1. Price Ranges
– Industrial-grade zinc sulfate: RMB 3,000–3,200/ton in East China; RMB 3,100–3,300/ton in North China; RMB 2,900–3,100/ton in South China; RMB 3,000–3,200/ton in Central China; RMB 2,800–3,000/ton in Southwest China.
– Food-grade/Pharmaceutical-grade zinc sulfate: Quoted at RMB 4,800/ton in Shandong Province; high-zinc-content granular zinc sulfate (33% Zn) in Henan Province priced at RMB 7,500/ton.
– Granular zinc sulfate: The latest benchmark price reflects adjustments (premiums or discounts) influenced by logistics, brand reputation, and other factors.

2. Key Price Drivers
– Raw material costs: Rising zinc ore mining costs, coupled with higher sulfuric acid prices driven by increased energy costs, are elevating overall production expenses.
– Environmental policies: Intensified environmental inspections in Hunan and Shandong provinces have forced shutdowns or output restrictions at numerous small- and medium-sized zinc sulfate producers, constraining raw material supply.
– Downstream demand: Steady growth in agricultural applications (e.g., micronutrient fertilizers for corn and rice); emerging demand potential in new-energy sectors (zinc-ion batteries, energy storage systems), projected to expand annual demand to over 40,000 tons within the next five years; and sustained growth in industrial applications (electroplating, water treatment, pharmaceuticals).

II. International Market Price Dynamics
1. Price Ranges
– Overseas zinc sulfate prices generally exceed domestic levels, ranging from USD 3,000–3,500/ton, supported by robust demand in markets such as the United States and Brazil.
– In 2025, China’s zinc sulfate exports reached 950,000 tons—accounting for over 75% of global trade volume—providing strong support to domestic pricing.

2. International Supply Disruptions
– Fire at the Cajamarquilla smelter in Peru (May 13): This facility—capable of producing 344,400 tons/year—has suspended operations; its 2025 output was approximately 320,000 tons.
– Explosion at Kazzinc’s smelter in Kazakhstan (May 5): Resulted in reduced capacity; refined zinc output in Q1 2025 declined 19.3% year-on-year to 48,000 tons.
– Glencore and Teck Resources have revised downward their 2026 zinc concentrate production guidance; global zinc mine production disturbance rate has risen to 7–9%, significantly above historical averages.

III. Supply-Demand Analysis
1. Supply Side
– Domestic capacity: Hydrometallurgical processing remains dominant, yet faces mounting environmental pressure; conventional processes incur high comprehensive energy consumption—3.2 tons of standard coal per ton of product. By contrast, emerging bioleaching technology reduces carbon emissions per unit output to just 28% of traditional methods and is rapidly gaining traction in low-grade ore resource development.
– Inventory levels: Domestic zinc ingot social inventory stands at 230,200 tons—still elevated; LME zinc inventory is only ~112,000 tons, near historic lows—creating an “externally tight, internally loose” market structure.

2. Demand Side
– Agricultural sector: As a micronutrient fertilizer, zinc sulfate demonstrates steady demand growth in soil remediation and crop yield enhancement—especially widely applied in corn and rice cultivation.
– New-energy sector: Applications in zinc-ion batteries and energy storage systems are gradually unlocking demand potential; annual demand is expected to surpass 40,000 tons within five years.
– Industrial sector: Continued growth in demand for industrial-grade zinc sulfate across electroplating, water treatment, and pharmaceutical industries.

IV. Price Outlook
1. Short Term (1–3 months)
– Price range: Domestic industrial-grade zinc sulfate is expected to trade within RMB 2,800–3,300/ton; food-grade/pharmaceutical-grade products may see further upward pressure, rising to RMB 5,000–8,000/ton due to heightened demand for high-purity grades.
– Key drivers: Persistent environmental regulation maintaining supply constraints; ongoing international zinc mine supply disruptions; and expanding demand from new-energy and agricultural sectors.

2. Medium Term (6–12 months)
– Price center: Widespread adoption of novel bioleaching technologies and energy cascade utilization strategies is projected to reduce benchmark enterprise energy consumption to <0.9 tons of standard coal per ton of product—mitigating cost-driven price pressures—though premium pricing for high-purity products will persist.
– Demand composition: New-energy sector share expected to rise to 15–20%; agricultural demand projected to grow 5–8% annually; industrial demand remains stable.

3. Long Term (1–3 years)
– Market size: Global zinc sulfate market is forecast to reach USD 6.18 billion by 2030, growing at a CAGR of 5.2%. As the world’s leading exporter, China is poised to further expand its global market share.
– Technological evolution: Engineering-scale implementation of nanostructured and controlled-release formulations, along with digital intelligent manufacturing for enhanced quality consistency, will drive industry transformation toward high-end, green, and sustainable development.

V. Risk Alerts
1. Raw material price volatility: Zinc ore and sulfuric acid prices are highly sensitive to international market fluctuations, posing potential cost-pass-through risks.
2. Environmental policy uncertainty: Escalating domestic environmental enforcement may trigger temporary plant closures or rectification orders, disrupting short-term supply.
3. International trade friction: Amid global supply chain restructuring, export markets face potential risks—including tariff adjustments and non-tariff trade barriers.