The production of sulphur has evolved significantly, with modern methods now drawing from both natural mineral deposits and industrial recovery processes. In natural mining operations, the extraction technique depends on the depth of the deposit. Shallow reserves can be processed mechanically through digging, crushing, and screening, while deeper layers require drilling into the mineral bed and injecting hot water or steam to melt the sulphur, which is then pumped to the surface for cooling and solidification.
Industrial sulphur recovery has become far more prevalent than natural mining. In China, over 90% of the country's sulphur output comes from recovery units attached to petroleum refineries and natural gas processing plants. The most widely used technology in the oil and gas sector is the Claus process, which traces its origins back to a thermal reaction first proposed by British chemist Carl Friedrich Claus in 1883. When processing natural gas, the feedstock often contains acidic gases like hydrogen sulfide in addition to methane. Through the Claus reaction, a portion of the H2S is partially oxidized to sulfur dioxide, which then reacts with the remaining H2S to yield elemental sulphur. For oil refineries, hydrodesulphurization units mix hydrogen with fuel products, converting the sulphur content into H2S, which is subsequently routed through the Claus process to recover sulphur. Many coal chemical plants in China also adopt this technology for sulphur recovery.
A variety of other techniques, such as the contact process, are used outside the petrochemical and coal chemical industries. This method is primarily applied to the treatment of sulphide minerals like pyrite, where the ore is roasted at high temperatures to generate sulfur dioxide, which is then absorbed by concentrated sulfuric acid to produce the final sulphur product.
Examining the Global Supply Landscape
Given that the oil and gas industry is the primary source of industrial sulphur, production tends to be concentrated in regions with significant hydrocarbon resources or substantial refining capacity. Key producers include Middle Eastern nations such as Saudi Arabia, Qatar, and the UAE, East Asian countries like China and Japan, and North American players including the United States and Canada.
China currently holds the dominant position, boasting the largest installed capacity and output of sulphur equivalent, a figure that includes sulphuric acid and pyrite conversions. According to USGS data, China's annual output reached 19 million tonnes, a volume that dwarfs other nations and accounts for roughly 23% of the global total. Following closely are the United States, Russia, Saudi Arabia, and the UAE, each producing between 5 million and 8 million tonnes annually, representing approximately 6% to 10% of the world's share. Combined, the top six producing countries account for over 60% of global supply. In the mid-tier, countries like Kazakhstan, India, Qatar, South Korea, and Japan each generate around 3 million to 4 million tonnes per year, holding 3% to 6% of the market share. In aggregate, these nations account for nearly 90% of worldwide sulphur equivalent output. For context, total global production in 2025 is estimated at 84 million tonnes.
Overview of China's Industrial Sulphur Capacity
According to domestic industry data, China's industrial sulphur capacity has surpassed 19 million tonnes per year. The past decade has seen a flurry of new recovery units being built, with capacity growth occasionally exceeding 10% annually. While the pace of new installations is expected to moderate in 2026, an additional 400,000 to 500,000 tonnes of capacity are still projected to come online.
By source, petroleum refineries are the dominant supplier, both domestically and globally. In China, refinery-derived sulphur accounts for more than 70% of total capacity. Geographically, production is heavily concentrated in the southwest and east of the country. The southwest region benefits from access to large-scale natural gas fields, contributing over 20% of the national capacity. Meanwhile, the eastern region, particularly the coastal provinces of Jiangsu and Zhejiang and Shandong province, hosts numerous state-owned, private, and independent refineries, making up nearly 40% of the total sulphur capacity.
When looking at operator groups, the "Big Three" oil companies dominate the industrial sulphur landscape. China Petroleum & Chemical Corp (Sinopec), PetroChina, and CNOOC account for 44%, 18%, and 2% of domestic capacity, respectively. In recent years, private refiners have expanded their footprint, with companies such as Shandong-based independent refiners, Hengli, Shenghong, and ZPC increasing their sulphur recovery volumes to over 20% of the total. In contrast, coal chemical enterprises led by China Coal, CHN Energy, and Baofeng still have relatively small sulphur recovery operations, representing only about 6% of the capacity. Despite the continuous expansion of capacity, operating rates remain relatively limited at around 60%. Between 2020 and 2025, average annual output stood at roughly 10 million tonnes, though 2025 saw a notable increase to 11.83 million tonnes, marking a 6% year-on-year growth.
Assessing China's Import Dependence
With domestic demand for sulphur exceeding 20 million tonnes annually, China relies heavily on imports to fill the gap between local supply and industrial consumption. From 2020 to 2025, average annual imports were approximately 8.85 million tonnes. Import volumes peaked at 9.95 million tonnes in 2024, before easing to 9.6 million tonnes in 2025, a figure that is expected to decline further in 2026. The import dependence ratio currently sits between 45% and 50%.