JUST IN: China to Halt Sulfuric Acid Exports Starting in May, Intensifying Global Supply Crisis
Published on Reflecto News | World News | Energy & Commodities
In a major escalation of global trade restrictions, China has indicated it will halt exports of sulfuric acid beginning in May, delivering a severe blow to the metals and fertilizer industries already reeling from raw material shortages triggered by the ongoing Iran war .
The decision, conveyed through official and trade channels, aims to prioritize domestic demand—especially for phosphate fertilizer production during the critical spring planting season—and comes as global supply chains for sulfur-based products have been paralyzed by the effective closure of the Strait of Hormuz .
“China has indicated it will halt exports of sulfuric acid from May, hitting metals and fertilizer industries already strained by raw material bottlenecks resulting from the Iran war.”
The Ripple Effect of the Hormuz Closure
The crisis traces back to the US-Israeli military campaign against Iran, which began on February 28 and has effectively shut down shipping through the Strait of Hormuz—a chokepoint for approximately 20% of global oil and a staggering 48% of seaborne sulfur supply .
The Middle East produces one-third of the world’s sulfur, a critical raw material derived from oil and gas refining that is essential for producing sulfuric acid . With Iranian forces restricting traffic and the IRGC imposing a limit of 15 ships per day, sulfur shipments from the region have ground to a halt, sending shockwaves through global industrial supply chains.
Key Market Impact:
| Commodity | Global Supply Disruption | Price Impact |
|---|---|---|
| Sulfur (Middle East) | 33% of global production blocked | Prices surged |
| Sulfuric Acid (China) | Major exporter halting shipments | Further upside risk |
| Phosphate Fertilizers | Production costs rising | Food security threat |
Sources: CRU Group, Argus Media, Bloomberg
“The sulfur market’s direction is now dependent on the duration of the conflict in the Middle East. The current holding pattern is unsustainable, and the market is poised for a price increase as 48% of seaborne supply remains largely unavailable.” — CRU Group Market Outlook, March 2026
China’s Strategic Pivot: Hoarding Acid for Domestic Use
China’s decision to halt exports is a calculated response to the global sulfur squeeze. Facing skyrocketing import costs for sulfur—a raw material for which China has a 61% external dependency—Beijing has opted to conserve its domestic supply of sulfuric acid, which is produced as a by-product of copper and zinc smelting .
The ban covers sulfuric acid derived from smelting operations, effectively redirecting this critical chemical away from the global market and toward domestic industries, particularly phosphate fertilizer production .
Analysts at CRU Group had flagged this exact scenario in a March market outlook, noting that there was “growing market talk that China may potentially restrict its acid exports after April, opting to use the acid domestically as an alternative to buying expensive sulphur” .
“If the suspension is enforced for the full year, the Chileans will be faced with even higher prices than we are seeing today.” — Sarah Marlow, Argus Acid Editor
Chile, DRC, and Zambia: The Copper Mining Crisis
The impact of China’s export ban will be felt most acutely in the copper mining industries of Chile, the Democratic Republic of Congo, and Zambia—nations that rely heavily on imported Chinese sulfuric acid for mineral processing .
Around one-fifth of Chile’s copper output—the world’s largest producer—involves a type of processing that depends on sulfuric acid . Chile alone purchases over 1 million tons of Chinese sulfuric acid annually.
Peter Harrisson, an acid analyst at consultancy CRU, warned that “the loss of Chinese volumes will be difficult to offset, given the parallel shortage of sulfur feedstocks” .
| Copper Producer | Dependence on Chinese Acid | Risk Level |
|---|---|---|
| Chile | 1 million+ tons/year | Critical |
| DRC | Major importer | High |
| Zambia | Major importer | High |
Global Food Security Under Threat
The sulfuric acid shortage is not merely an industrial problem—it poses a direct threat to global food security. Sulfuric acid is essential for manufacturing phosphate fertilizers, which are critical for crop production worldwide .
The timing of China’s export ban compounds the crisis. The halt coincides with the peak crop-planting season in the Northern Hemisphere, a period of maximum fertilizer demand . With China—a major fertilizer producer—hoarding its acid for domestic use, global buyers face tighter supply and higher costs .
Price Trends and Outlook:
Sulfuric acid prices have been rising since the start of the Iran conflict, and China’s export ban is expected to add significant upside risk to the seaborne market .
Pricing agency Argus Media, which first reported the Chinese ban on April 9, suggested the restriction could last throughout 2026 .
| Scenario | Projected Impact |
|---|---|
| Short-term Hormuz reopening | Pent-up supply released; prices could fall |
| Prolonged conflict | Further tightening; demand destruction likely |
| Full-year Chinese ban | Severe global shortage; higher prices sustained |
Source: CRU Group analysis
A ‘Fundamental Tightening’ of Global Markets
The convergence of the Hormuz closure and China’s export ban represents a one-two punch to global supply chains. As one analyst noted, the potential for China to extend its export policy beyond April represents “the greater upside risk” to the market, with the ability to “fundamentally tighten the global market” .
For now, the market remains thin, price discovery is uneven, and importers are holding back parcels unless pricing becomes compelling. The duration of the Iran conflict—and the status of the Strait of Hormuz—will determine whether the next visible transactions reset the assessment higher or merely reflect isolated distressed volumes .
Frequently Asked Questions (FAQs)
1. Why is China halting sulfuric acid exports?
China is halting exports to prioritize domestic supply during the peak crop-planting season. The move is a response to global sulfur shortages caused by the effective closure of the Strait of Hormuz, which has blocked shipments from the Middle East—the source of one-third of the world’s sulfur .
2. How long will the export ban last?
Pricing agency Argus Media has reported that the restriction could last throughout 2026, though an official timeline has not been confirmed by China’s Ministry of Commerce .
3. Which industries will be most affected?
The ban will hit copper mining (especially in Chile, DRC, and Zambia) and phosphate fertilizer production—both of which rely heavily on sulfuric acid for mineral processing and crop nutrition .
4. How does the Iran war relate to this decision?
The closure of the Strait of Hormuz has blocked sulfur shipments from the Middle East, causing global sulfur prices to surge. China, which relies on imports for 61% of its sulfur, is conserving domestic sulfuric acid as an alternative to expensive imported sulfur .
5. What is the impact on global food security?
Sulfuric acid is essential for producing phosphate fertilizers. A shortage of acid could lead to reduced fertilizer availability, higher food prices, and potential crop yield reductions during the critical spring planting season .
6. Which sectors rely on Chinese sulfuric acid?
Major importers include Chile (copper mining), the Democratic Republic of Congo (cobalt and copper), and Zambia (copper). These nations collectively depend on over 1 million tons of Chinese sulfuric acid annually .
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