China Bans Acid Exports to Preserve Metals and Fertilizer Supply

GFN – BEIJING: China is preparing to halt sulfuric acid exports as the Iran war disrupts global sulfur supply chains, tightening availability of a key industrial input and intensifying pressure across mining and fertilizer markets.

According to reporting by Mining.com, the move follows a surge in sulfuric acid prices driven by supply disruptions linked to the closure of the Strait of Hormuz, a critical route for sulfur shipments from the Middle East. The region accounts for roughly one-third of global sulfur production, a key feedstock used to produce sulfuric acid.

The restriction, first flagged by market intelligence firm Argus, could remain in place through 2026 as Beijing prioritizes domestic supply during peak agricultural demand. Sulfuric acid is a core input in phosphate fertilizers and is also essential for certain copper extraction processes, making it a critical link between energy, agriculture, and metals markets.

China’s withdrawal from export markets is expected to exacerbate an already tightening supply environment. Prices have already surged in major importing regions such as Chile, which relies heavily on Chinese shipments and uses sulfuric acid in roughly one-fifth of its copper production.

The combined effect of constrained Middle Eastern sulfur supply and reduced Chinese exports presents a dual shock to global industrial chains. Analysts warn that replacing Chinese volumes will be difficult given simultaneous shortages in upstream sulfur feedstocks, raising the risk of sustained cost inflation for both mining operations and agricultural inputs.

The development underscores how the Iran conflict is extending beyond energy markets into downstream industrial materials, reinforcing broader concerns around supply chain fragility and commodity-linked inflation pressures.