Market and product

China’s sulphuric acid export ban and Iran war risks are squeezing metals, fertiliser and food supply chains worldwide, testing procurement and logistics

China’s ban on sulphuric acid exports from May is set to cascade through global supply chains, tightening the screws on metals producers and fertiliser makers already hit by the Iran war and the closure of the Strait of Hormuz.

The decision turns a once-background industrial chemical into a strategic pinch point for mining, agriculture and food security.

The ban covers sulphuric acid produced as a by-product of copper and zinc smelting in China, the world’s largest exporter of the chemical.

It lands just as Middle Eastern sulphur shipments, a key feedstock for sulphuric acid, are curtailed by disrupted trade flows through Hormuz, and threatens a new crisis for global supply chains.

Syed Salman Shaffi, President at Gold Miners Club, says: “China’s proposed sulfuric acid export ban is a clear example of a major economy choosing internal stability over global market integration.

“By keeping a key industrial chemical at home, Beijing shields its own farmers and industries from volatility in the Middle East.

“For the rest of the world, the ban acts as a crisis multiplier. The Iran conflict created a shortage of raw materials. China’s export halt triggers a commercial drought.

“These events shift the burden from Chinese smelters to copper mines in Chile, mining operations in Congo, and fertilizer blenders in India.

“As the May 2026 deadline approaches, global buyers are likely to begin panic-buying, driving sulfuric acid and fertilizer prices even higher.

“For industries reliant on sulfuric acid - including food production and electronics - the coming months will severely test supply chain resilience and could result in sustained price volatility.”

Why sulphuric acid is essential

With about a third of global sulphur output coming from the region, the loss of Chinese acid exports removes one of the last flexible supply valves for buyers in the Americas, Africa and Asia.

Sulphuric acid is essential for leaching in copper operations, particularly in major producing countries such as Chile, the Democratic Republic of Congo and Zambia.

Chile alone typically imports more than one million tonnes of Chinese sulphuric acid a year, leaving miners exposed to higher prices and potential shortages as the ban bites.

Any curbs on output would reverberate through downstream copper intensive sectors, including electrical equipment, construction and electric vehicles, as well as Indonesian high pressure acid leach (HPAL) nickel projects that supply the global battery industry.

Fertiliser importance

Sasa Jarvis, National Co-Leader of Mining and Partner at McMillan LLP, says: “If China is indeed curbing sulphuric acid exports, this could quietly reshape metals markets, particularly when sulphur from the Middle East is subject to severe shipping risks through the Strait of Hormuz.

“Acid leaching is required for much of global copper and nickel production - and impacts silver supply by extension given the amount of silver produced as a byproduct in copper mining. Copper and silver are each in short supply for current levels of demand already.”

Roughly two thirds of sulphuric acid production feeds fertiliser output, especially phosphate fertilisers that are critical to crop yields.

China has already restricted phosphate fertiliser exports through 2026 and is now tightening exports of the acid needed to make them, compounding the squeeze on global nutrient supply.

With Middle Eastern sulphur constrained and Chinese sulphuric acid redirected to domestic farmers during peak planting season, buyers in major importing regions such as India and parts of Africa face higher costs and potential shortages that could push up food prices.

For supply chain leaders there may be no quick fix.

New sulphuric acid capacity and shipping routes take years, not months, to develop, so procurement teams are already looking at building buffer stocks ahead of planting seasons, locking in multi year contracts with non-Chinese suppliers and co investing in on site acid production or closed loop recycling where feasible.

The combination of war driven sulphur disruption and China’s export halt is less a temporary inconvenience than a structural stress test for metals, fertiliser and food supply chains worldwide.