Why is pyrite pricing decoupling from sulfur and sulfuric acid in China's 2026 market?
China's pyrite market is being reshaped by a feedstock squeeze upstream. Sulfur imports, over half of domestic consumption and heavily Middle East-sourced, were disrupted when Hormuz shipping tightened, pushing port sulfur from roughly 3,850 yuan/t early in the year toward peaks near 11,600 yuan/t. Sulfur-burning acid producers saw costs double, while integrated pyrite-to-acid players kept raw material costs locked near open-pit mining levels of about 450 yuan/t. That spread is the whole story: sellers of acid price to market, but pyrite-based producers capture the margin. Yunnan-Guizhou-based Yuegui, operating Asia's largest pyrite mine with 300 kt/y ore and 520 kt/y acid capacity, lifted pyrite concentrate gross margin to 61.8 percent. Expect this cost-lock advantage to persist as long as imported sulfur stays tight.
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