Soaring prices and tight supply
🔥 Middle East Sulfur Prices Hit Record High
On July 1st, ADNOC set the official selling price for sulfur destined for the Indian subcontinent at $1000/ton for July, a 16.3% increase in a single month, breaking the record high set in 2008. The core use of sulfur is in the production of sulfuric acid (accounting for over 90% of total consumption), which then flows into the chemical, metallurgical, pharmaceutical, fertilizer, and building materials industries. Driven by this, by the end of June, the mainstream transaction price of insoluble sulfur had exceeded 22,000 yuan/ton, an increase of over 140% since the beginning of the year, also setting a new record.
The underlying reason for the soaring sulfur prices is that geopolitical conflicts in the Middle East have disrupted over 30% of the global sulfur supply.
💻 Hydrofluoric Acid Prices Surge 75% in Six Months, Semiconductor Materials in Crisis
Driven by the explosive growth in demand for AI chips, the price of electronic-grade hydrofluoric acid continues to climb. According to data from BaiChuan YingFu, the domestic price of UP-grade electronic-grade hydrofluoric acid is 7885 yuan/ton, up 19% from the beginning of the year; UPS-grade reaches 8750 yuan/ton, up 17%, with some high-end specifications seeing price increases exceeding 75% in the past six months. Anhydrous hydrofluoric acid, a core raw material, has risen by 40% this year.
On the demand side, major wafer foundries such as TSMC, Samsung, and SK Hynix are snapping up electronic-grade hydrofluoric acid due to their AI computing power expansion. From helium to hydrofluoric acid, the semiconductor material supply chain is entering a state of high alert.
🔋 Electrolyte additive VC prices climb, inventory drops to low levels. The demand for vinylene carbonate (VC), a major additive in lithium battery electrolytes, continues to rise, with the spot market experiencing another round of price increases. Current VC industry inventory has dropped to low levels, and some orders require cash on delivery.
Behind the VC price increase is a temporary supply shortage in the industry: demand is growing rapidly during the peak season, but effective production capacity on the supply side is difficult to release quickly. Leading battery manufacturers like CATL and BYD are actively securing venture capital (VC) capacity through long-term contracts and equity investments, fueling strong bullish expectations for the market. In July 2026, China's total lithium battery production capacity reached approximately 283 GWh, a 5.6% increase month-on-month, while global lithium battery production reached approximately 296 GWh, marking the fifth consecutive month of record highs.
📈 Dichloromethane Rebounds
The dichloromethane market showed a generally volatile but upward trend in the first half of July. As of July 16th, the bulk mixed price of dichloromethane in Shandong was 2140 yuan/ton, a 9.6% increase from the beginning of the month. On the cost side, the recovery in methanol prices, influenced by US-Iran geopolitical risks, provided cost support for dichloromethane. However, it is currently the traditional off-season for chemical industry consumption, with downstream industries such as coatings, adhesives, and pharmaceutical intermediates maintaining low operating rates, resulting in weak overall demand and limiting the extent of the rebound.
📊 Major Chemical Commodity Price Changes (July 15th)
According to data monitored by Zhuochuang Information, out of 107 products, 67 products rose (62.62%), 34 remained stable, and 6 declined:
