Market Intelligence Report on Ferrous Sulfate Heptahydrate (FeSO?·7H?O) — Recent Commodity Market Dynamics

I. Price Dynamics

1. National Benchmark Price:
- As of May 26, 2026, the Business Network’s benchmark price for ferrous sulfate heptahydrate stood at RMB 1,110.00 per metric ton, representing a 0.30% increase from the beginning of the month and reaching an annual high.

2. Regional Price Variations:
- Shandong Province: Mainstream quotations range from RMB 950–1,200 per metric ton; some dried-grade products are quoted at RMB 680 per metric ton.
- Hubei Province: Mainstream quotations range from RMB 1,000–1,200 per metric ton; high-purity grade products command premium pricing.
- Henan Province: Wide price dispersion—granular products with 90% purity are priced at RMB 240–580 per metric ton ex-factory; dried-grade products range from RMB 500–580 per metric ton.
- Shanghai Municipality: Strong demand from the high-end market is evident, with certain dried-grade products quoted as high as RMB 1,650 per metric ton.
- Sichuan Province: Quotations hover around RMB 1,100 per metric ton.

3. Price Volatility Characteristics:
- High-Purity Grade (≥99%): Prices remain stable in the RMB 800–1,050 per metric ton range, supported by robust demand from the new energy sector.
- Low-Purity Grade (88%–90%): Intense price competition persists; recent supply increases may drive prices down to RMB 450–500 per metric ton.

II. Market Driving Factors Analysis

1. Supply Side:
- Titanium Dioxide By-Product Dominance: Accounts for 65%–70% of total supply. In 2026, titanium dioxide plant operating rates rebounded, boosting by-product output; however, tightening environmental regulations have raised production costs, limiting effective supply growth.
- Steel Pickling Recovery: Contributes ~20% of supply; national crude steel output remains stable, ensuring substantial recovery of iron oxide scale.
- Chemical Synthesis (Supplementary Source): Accounts for ~15% of supply, produced by enterprises such as Yuntianhua Group and Sinopec, targeting premium markets.

2. Demand Side:
- New Energy Sector: Expansion of lithium iron phosphate (LFP) battery production drives strong demand for high-purity ferrous sulfate. Domestic LFP cathode material shipments are projected to reach 5.8 million metric tons in 2026, significantly increasing corresponding ferrous sulfate demand.
- Agricultural Sector: As a micronutrient fertilizer additive, demand grows annually by 5%–7%, with particularly robust demand from developing countries.
- Water Treatment Sector: Demand for flocculant applications continues to grow, albeit slightly eroded by substitution from novel flocculants, potentially leading to modest market share decline.
- Industrial Applications: Stable demand from electroplating, textile dyeing & printing, cement manufacturing, and other sectors.

3. Structural Imbalance:
- High-Purity Grade Supply Shortage: Supported by surging new energy demand, prices remain elevated.
- Low-Purity Grade Overcapacity: Fierce price competition prevails, with some producers quoting as low as RMB 480 per metric ton.

III. Competitive Landscape

1. Intra-Industry Competition:
- Numerous competitors exist, with severe product homogenization; price competition is especially intense in the low-purity segment.
- The top five enterprises in the titanium dioxide by-product segment hold 57% of market share; the chemical synthesis segment is led by Yuntianhua Group and Lubei Chemical Industry Co., Ltd.

2. Bargaining Power Across the Value Chain:
- Downstream Purchasers: Exert downward pricing pressure via tender-based procurement.

IV. Short-Term Outlook (1–3 Months)

1. Continued Price Divergence:
- High-Purity Grade: Prices expected to remain firm in the RMB 800–1,050 per metric ton range, underpinned by sustained new energy demand.
- Low-Purity Grade: Prices may decline further to RMB 450–500 per metric ton due to increased supply.

2. Supply-Demand Dynamics:
- New Energy Sector: Demand continues rising, fueling accelerated growth in high-purity ferrous sulfate consumption and widening the supply-demand gap.
- Traditional Sectors: Steady demand from water treatment and agriculture persists, though market share may shrink slightly due to substitution by advanced flocculants.

3. Industry Consolidation:
- Amid increasingly stringent environmental regulations, small and medium-sized enterprises (SMEs) are accelerating their exit from the market. Industry concentration is expected to rise further, with the top ten producers projected to collectively capture over 45% of market share.