China is reportedly set to halt sulfuric acid exports from May, prioritizing domestic supply for fertilizers and industry amid disruptions from the Iran war.
Sulfuric acid prices have been steadily rising recently, primarily due to disruptions in sulfur supplies from the Middle East. This region accounts for approximately one-third of global sulfur production – a crucial input for sulfuric acid production, copper mining, and phosphate fertilizers.
Sulfuric acid prices surge in Chile (Source: Bloomberg)
This move could put significant pressure on the copper mining industry in major producing countries such as Chile, the Democratic Republic of Congo, and Zambia. Chile alone imports more than 1 million tons of sulfuric acid from China annually, while about 20% of its copper production depends on processes that require this chemical.
H2SO4 prices have surged in Chile and could continue to climb if restrictions are extended until the end of 2026, according to analysts. Given the global sulfur supply shortage, replacing supplies from China is virtually impossible.
This development demonstrates the widespread impact of geopolitical conflict, which extends beyond energy and also carries the risk of supply chain disruptions in core industries such as metals and agriculture.
Sulfuric acid is a key industrial chemical, with 60-70% used in fertilizers (phosphate fertilizers); it is used in copper mining (heap leaching, SX-EW), nickel (HPAL), uranium, semiconductor processing, oil refining, and pharmaceuticals. China is the world's largest producer of sulfuric acid, with an output of over 74 million tons per year. |
Source: Bloomberg
