China Halts Sulphuric Acid Exports as War Squeezes Global Supply

Copper: direct and second-order effects. Chile imports over one million tonnes of Chinese acid annually (32% of China’s total acid exports, with a further 15% flowing to Indonesia); roughly 20% of Chile’s copper output depends on acid-intensive heap leaching. Prices have already surged 44% in one month. But the disruption extends beyond acid-importing miners. Inside China, the export ban is expected to depress domestic acid prices, eliminating the byproduct revenue that Chinese smelters had relied on to offset collapsing processing fees. Spot treatment charges for imported copper concentrate hit a historic low of minus $77 per tonne on April 10. Analysts expect smelters to bring forward planned maintenance shutdowns, reducing Chinese copper output and tightening global supply from both directions simultaneously.

Nickel and battery metals. Indonesia accounts for over 60% of global nickel production and imports approximately 75% of its sulphur from the Middle East. With limited domestic acid capacity and no near-term alternative sourcing, Indonesian high-pressure acid leach (HPAL) operations are among the most exposed in this event. Constraints here flow directly into electric vehicle battery and energy storage supply chains.

Fertilizer and food security. Sulphuric acid converts phosphate rock into phosphoric acid, the essential ingredient in DAP, MAP, and NPK (nitrogen, phosphorus, potassium) fertilizers. China has restricted both the acid and the finished fertilizers, compounding the squeeze on the entire phosphate value chain. Major importers including India, Southeast Asia, and parts of Africa face higher input costs during critical planting windows. India’s sulphuric acid demand alone exceeds 20 million tonnes annually. International urea prices have risen approximately 40% compared to pre-war levels, and phosphate prices are expected to remain elevated through at least the end of 2026.

Silver. According to the Silver Institute, roughly 72% of global silver is a by-product of base metal mining, with copper alone accounting for about 27%. The silver market has been in structural deficit for five consecutive years, with cumulative shortfalls exceeding 800 million ounces since 2021. Any reduction in copper output from acid-constrained operations directly tightens silver supply into a market that is already drawing down inventories.

Uranium. In-situ leach (ISL) mining accounted for over 50% of global uranium production in 2024, and the process depends on sulphuric acid. Kazakhstan, the world’s largest uranium producer at 39% of global supply, consumed 1.85 million tonnes of acid in 2025. Kazatomprom, the state-owned producer, had already warned of production limitations due to acid shortages before the current crisis and has been constructing a dedicated 800,000-tonne acid plant to reduce import dependency.

Semiconductors. Sulphuric acid is essential for wafer cleaning, etching, and oxide removal in chip fabrication. Around 40% of global sulphur exports originate from the Middle East, and the concern for fabs is logistics disruptions and price volatility for the ultra-high-purity grades required in advanced manufacturing. As global fab construction accelerates under initiatives like the U.S. CHIPS Act, acid supply constraints create a direct input bottleneck competing with mining and fertilizer demand.