Overview of the Copper Sulfate Market
Currently, the copper sulfate market continues its upward trend, with prices climbing steadily. The average price of mainstream copper sulfate grades has exceeded 23,700 yuan/ton, a significant increase compared to previous lows. Strong cost support has created a robust market sentiment for maintaining prices, and the market is expected to remain at high levels in the short term. As an important inorganic chemical raw material, copper sulfate has rigid demand in multiple fields such as agriculture, electroplating, and new energy. The current price increase is mainly driven by cost transmission, while coordinated support from both the supply and demand sides has also played a role.
Factors affecting supply and demand
The rigid demand for copper sulfate in multiple fields has driven up prices, with cost transmission and supply-demand coordination being the main factors.The agricultural sector, as a core consumption segment, accounts for as much as 45%. Demand for crop disease control in autumn and winter remains stable, while the promotion of green pesticides drives steady growth in demand for high-purity agricultural-grade and feed-grade copper sulfate. The electroplating industry benefits from the expansion of new energy vehicles and high-end consumer electronics manufacturing, leading to a rapid increase in demand for electronic-grade copper sulfate, with an average annual growth rate exceeding 7.5%. The new energy sector is particularly strong. Copper sulfate, as a core raw material for the preparation of precursors for lithium battery cathode materials, continues to see increased demand with the development of the energy storage industry. By 2025, consumption in this sector has reached 80,000 tons, becoming a significant engine for market growth. Furthermore, the domestic and international markets are moving in tandem. China, as the world’s largest producer of copper sulfate, has long maintained a net export position. Strong overseas agricultural and infrastructure demand has led to steady growth in export orders, further pushing up domestic prices. In the international market, the Asia-Pacific region is driven by agricultural demand, resulting in a simultaneous rise in copper sulfate prices. With the resonance of domestic and international markets, the price increase trend continues to deepen, with prices for all grades of products steadily climbing, and the overall market showing a strong upward trend.
Raw materials and supply and demand tensions
From a cost perspective, high raw material prices are the core driver of the continued price increases. Copper sulfate production is highly dependent on copper raw materials, with copper concentrate accounting for over 70% of its production costs. Recently, global copper prices have fluctuated upwards, with tight copper concentrate supply and strong downstream demand from high-end manufacturing jointly pushing up electrolytic copper prices. This cost pressure is directly transmitted downwards, forcing copper sulfate producers to continuously raise prices. Simultaneously, the price of auxiliary raw material sulfuric acid is also rising, and increased demand from downstream agricultural chemicals has led to a tight sulfuric acid supply, further pushing up the overall production cost of copper sulfate.
Supply-side changes
On the supply side, some enterprises in major production areas experienced a decline in operating rates due to equipment maintenance and environmental inspections, limiting the release of effective production capacity. Meanwhile, the accelerated elimination of small and medium-sized production capacity in the industry further tightened market supply. Under this tight supply-demand balance, the price increase trend continued to strengthen.
Demand remains strong
Demand is supported by strong demand across multiple sectors, keeping prices stable at high levels. Demand for copper sulfate in agriculture, electroplating, and new energy sectors is stable and increasing, with overseas orders remaining steady. Agriculture, as a core consumption sector, accounts for 45% of total demand. Demand for crop disease control in autumn and winter remains stable, while the promotion of green pesticides drives steady growth in demand for high-purity agricultural and feed-grade copper sulfate. The electroplating industry benefits from the expansion of new energy vehicles and high-end consumer electronics manufacturing, leading to a rapid increase in demand for electronic-grade copper sulfate, with an average annual growth rate exceeding 7.5%. The new energy sector is particularly strong. Copper sulfate, as a core raw material for the preparation of lithium battery cathode materials, continues to see increased demand with the development of the energy storage industry. Consumption in this sector is projected to reach 80,000 tons by 2025, becoming a significant engine for market growth. Furthermore, the domestic and international markets are interconnected. China, as the world’s largest producer of copper sulfate, has long maintained a net export position. Strong overseas demand from agriculture and infrastructure sectors, coupled with steadily increasing export orders, further boosts domestic prices. In the international market, the Asia-Pacific region is also experiencing rising copper sulfate prices, driven by agricultural demand.
Market Outlook
Looking ahead, copper sulfate prices are expected to maintain their upward momentum and likely continue to trade at high levels. On the cost side, the tight global copper concentrate supply is unlikely to improve in the short term, and copper prices are likely to remain volatile at high levels. Meanwhile, strong support from sulfuric acid prices and environmental costs will make it difficult to alleviate production cost pressures. On the supply side, companies are releasing capacity at a moderate pace, and the tight spot market is unlikely to reverse in the short term, leading to a strong willingness to maintain prices. On the demand side, agricultural demand remains stable, while demand from electroplating and new energy sectors continues to increase, resulting in a solid and reliable fundamental outlook. Under the combined influence of these factors, copper sulfate prices still have room to rise, but close attention needs to be paid to the downstream’s ability to absorb high raw material prices and the risk of demand contraction. Overall, the market is expected to maintain a relatively strong trend with ample upward momentum, and the industry’s profit margins are expected to continue to expand.
Post time: Dec-24-2025