HS Code: 3204191100 (Sulphur Black and its preparations), 0% export VAT refund rate. Without tax rebate benefits, the industry relies entirely on cost control, product quality and compliance for competition.
- Overall Volume Outlook: Mild Modest Growth with Slower Growth Rate (Full Year 2026)
- Historical Volume Benchmark
China’s total export volume of sulphur black reached approximately 48,000–50,000 tons in 2025, with a year-on-year increase of 3%–4.5%. Exports of conventional powdered sulphur black dipped slightly, offset by surging shipments of liquid and high-purity eco-friendly grades to sustain overall growth.
- 2026 Full-Year Volume Forecast
Total annual exports are projected to hit 51,000–54,000 tons, representing a moderate year-on-year growth of 4%–6%, without explosive expansion.
Growth drivers: Continuous capacity expansion of textile industries in Southeast Asia, South Asia and Central Asia;
Growth headwinds: Rising prices of raw materials (sulphur and p-phenylenediamine), increased production costs from domestic environmental retrofits, capacity expansion in India eroding market share, and tightening environmental barriers in Europe and America.
- Export Value & Price Trend
Average export price benchmark for 2026: USD 3,000–3,150 per ton, up slightly by 3%–5% year on year;
Price hike logic: Upstream raw material cost inflation, shrinking market share of low-quality crude products, and rising proportion of high value-added liquid and high-purity grades lifting the overall average price.
- Regional Export Pattern: Market Divergence in 2026
- Core Growth Region: Southeast Asia (60%+ of total exports, No.1 market)
Vietnam (23%–25% market share): Continuous capacity expansion of denim and workwear cotton fabrics, with stable demand growth of 5%–7% in 2026. RCEP zero-tariff customs clearance delivers prominent advantages, with more direct orders placed to leading domestic manufacturers.
Bangladesh (18%–20% market share): The world’s core garment manufacturing base with rigid demand for sulphur black; expected to register the largest annual volume increment with a 6%–9% year-on-year growth in 2026. Both low-cost powder and liquid sulphur black are widely demanded.
Indonesia & Cambodia: Growth rate exceeding 10%, driven by expanding small and medium-sized printing & dyeing plants with rising demand for small-batch consolidated shipments.
- Stable Demand Region: South Asia (India & Pakistan, combined 28% market share)
Pakistan: Stable cotton textile and canvas sectors with mild steady growth in 2026.
India (15% market share): The biggest volatile variable. Local manufacturers including Atul keep expanding domestic sulphur black production, supported by tariff protection. China’s sulphur black exports to India will slide moderately by 2%–5% year on year in 2026. Conventional low-cost powder grades lose competitiveness, while only high-purity eco-friendly variants can retain market presence.
- Emerging High-Growth Region: Central Asia (Kazakhstan, Uzbekistan)
The biggest blue-chip incremental market in 2026, with a growth rate of 15%–25%.Central Asian textile goods are largely exported to Russia, generating solid demand for dark dyes for workwear, canvas and denim. Local environmental standards are relatively loose, and China’s high-strength powdered sulphur black boasts outstanding cost-performance advantages. Leading foreign trade enterprises are accelerating local agent channel development.
- Stagnant & Pressured Region: EU & North America
Strict regulations including REACH SVHC and ZDHC plus textile aromatic amine restrictions continuously curb conventional powdered sulphur black;
Exports of standard sulphur black to Europe will decline further by 5%–8% in 2026. Only low-heavy-metal, low-PAH modified liquid sulphur black will maintain robust growth above 20%, though this high-margin niche segment accounts for limited total volume.
- Other Markets
Middle East & Africa: Slight steady growth, dominated by low-cost bulk powder grades. Turkey serves as a Eurasian transit market with flat demand.
III. Product Structure Trend: Shifting Product Mix in 2026
- Traditional Crude Sulphur Black (Standard 90% BR Powder): Continuous Export Decline
Its export proportion will drop from 31.5% 在 2025 to below 26% 在 2026;
Downside pressures: Environmental restrictions, poor color fastness, competition from low-cost Indian domestic products, and phase-out by downstream dyeing plants upgrading equipment;
Only small-volume procurement from low-end small-scale dyeing factories in Africa and South Asia, featuring fierce price wars and ultra-thin gross margins.
- High-Purity Powder Sulphur Black (≥98.5% High Strength): Mainstay Stable Product
Major domestic manufacturers (Longsheng, Shandong and Jiangsu-based producers) have launched revamped eco-friendly production lines, making this grade the core volume growth driver in 2026.It caters to large and medium-sized printing & dyeing mills in Vietnam, Bangladesh and Central Asia, delivering 4–5 grade water washing fastness and lower overall dyeing costs, with high repeat customer rates and gross margins 10–15 percentage points higher than crude grades.
- Liquid Sulphur Black (Water-Soluble Leuco Liquid Black): Fastest-Growing Segment with 20%+ Annual Growth
The mainstream upgrade trend for the global denim industry, projected to achieve a 20%–28% export volume surge in 2026. Large denim manufacturers in Europe, America and Southeast Asia have rigid demand for this product.Advantages: Dust-free application, uniform dye uptake and low wastewater pollution, complying with overseas environmental audits. Its unit price is 15%–25% higher than powder grades, acting as the core profit growth engine for export businesses.
- Special Modified Sulphur Black (Low Heavy Metal, Low Sulphur Emission, Conductive Fiber Grade): High-End Niche Product
Applied to industrial filter fabrics, conductive textiles and premium workwear, mainly supplied to European, American and high-end Southeast Asian brand clients. It features stable long-term orders, high industry barriers and limited competition.
- Four Core Driving Factors: Upsides & Downside Pressures
(A) Bullish Factors Supporting Export Growth
Continuous Global Textile Capacity Transfer to Southeast Asia & Central AsiaCotton fabric and denim output in Vietnam, Bangladesh and Uzbekistan will rise year on year in 2026. Sulphur black remains an irreplaceable low-cost dark dye (35% cheaper than reactive black and 60% cheaper than vat black) with rigid market demand.
Domestic Supply Consolidation Amplifies Quality Advantages of Leading ManufacturersNumerous small factories without complete environmental permits have been shut down, pushing the top 5 enterprises’ capacity concentration ratio to 77%. Green production lines launched by leaders including Longsheng, Jihua and Yabang deliver low-COD and low-heavy-metal products with superior compliance compared to small manufacturers in India and Southeast Asia, attracting priority procurement from international brand clients.
RCEP Policy DividendsZero-tariff treatment and expedited customs clearance for RCEP member states continuously unlock logistics and cost advantages for shipments to Vietnam, Indonesia and Cambodia, improving delivery efficiency for small and medium-sized foreign trade orders.
Expanding New Industrial Application ScenariosEmerging demand from conductive fibers, industrial canvas and anti-corrosion coating sectors creates new volume growth beyond textile applications.
(B) Bearish Factors Restricting Export Growth
Persistently Upstream Raw Material Cost InflationSulphur and nitrobenzene (intermediate) prices fluctuate at high levels. The new energy battery industry competes for high-purity sulphur resources in 2026, tightening raw material supply and squeezing export quotation space, making low-margin volume-driven sales unsustainable.
Zero Export VAT Refund Rate Creates Cost DisadvantageHS code 3204191100 sulphur black carries a 0% export VAT refund rate; the full 13% VAT burden falls entirely on manufacturers. Indian domestic dyes enjoy chemical export subsidies, enabling local suppliers to offer quotations 5%–10% lower than Chinese equivalents, putting China at a disadvantage in bulk commodity price competition.
Tightening Global Environmental RegulationsEU REACH, EU textile bans and upgraded wastewater discharge standards across Southeast Asia raise market access thresholds for conventional sulphur black, increasing compliance transformation costs.
India’s Domestic Capacity Expansion Captures South Asian OrdersLocal producers such as Atul keep expanding liquid and powdered sulphur black capacity, backed by tariff protection. Partial procurement demand from Pakistan and Bangladesh shifts to India, eroding China’s traditional market share in South Asia.
- Price & Profit Trend Forecast for Full-Year 2026
Domestic Factory PriceAverage domestic ex-factory price of standard BR powder sulphur black will stand at RMB 25,500–26,000 per ton in 2026, a mild 3.5% year-on-year increase; liquid sulphur black will see a 5%–7% price hike.
Tiered Export Quotation & Margins
Low-end crude powder: Intense price competition with gross margins of only 3%–6%;
High-purity powder grades: Gross margins of 12%–18%;
Eco-friendly liquid sulphur black: Gross margins of 20%–28%, the core profit driver for export operations.
Annual Price CycleQuotations will stay firm in H1 amid high raw material prices; mild price softening may occur in H2 if sulphur supply eases, yet limited downside is expected for the full year.
- Operational Strategy Recommendations for Sulphur Black Exporters in 2026
Market Layout Adjustment
Priority growth markets: Bangladesh, Vietnam, Uzbekistan and Kazakhstan;
Scale back low-cost powder sales to India and shift focus to high-end liquid grades;
Discontinue conventional powder supply to Europe and America, only supply low-metal eco-modified products.
Product Mix TransformationCut production and order intake of crude powder; prioritize high-strength powder and liquid sulphur black to lift per-ton profit and avoid cutthroat price competition.
Proactive Compliance PreparationComplete REACH registration, ZDHC certification and low-PAH testing reports in advance to secure long-term orders from branded dyeing mills.
Channel Operation ModelDevelop exclusive local agents in Central Asia and Southeast Asia; sign long-term price-locked contracts to hedge raw material volatility; boost comprehensive revenue via bundled sales of supporting auxiliaries including reducing agents and sodium sulphide.
VII. Long-Term Risk Reminders
Sluggish global textile consumption, with downstream garment export downturn dragging dye demand;
Stricter sulphide bans introduced by the EU sharply contracting European and American market access;
Sustained capacity expansion in India eroding China’s long-term market share of basic sulphur black in South Asia;
Sharp price surges of sulphur and intermediates leading to loss-making export orders.
Summary
In 2026, sulphur black exports will register mild steady volume growth of 4%–6% with severe structural differentiation. Southeast Asia and Central Asia represent core incremental markets, while eco-friendly liquid grades become the main growth and profit pillar, with low-end crude powder shipments shrinking continuously. Four major industry headwinds persist throughout the year: fierce competition from India, raw material inflation, zero VAT refund and tightening overseas environmental regulations. Enterprises must pursue high-end differentiated product strategies to sustain export competitiveness.
Translation Notes
Industry-specific terminology complies with international textile & chemical trade standards (e.g. leuco liquid black, PAH, SVHC, ZDHC, color fastness grade);
Financial & customs terms follow cross-border trade English conventions (VAT refund rate, HS code, ex-factory price, gross margin);
Regional country names and textile industrial terms are unified with global foreign trade writing habits;
Long complex Chinese logic sentences are split into concise professional English paragraphs suitable for overseas reports, business proposals and client presentations
