China Halts Sulfuric Acid Exports in May 2026, Shaking Global Fertilizer and Metals Markets

Chinese authorities have notified domestic producers that China will stop exporting sulfuric acid starting in May 2026, with the only narrow exception being electronic grade sulfuric acid used in the semiconductor industry. The restriction covers both smelter acid, produced as a by product of copper and zinc metallurgy, and sulfur based acid manufactured from elemental sulfur. The announcement was relayed through official and trade channels on April 10, 2026 at around 20:30 UTC, and a large international buyer confirmed receiving the information directly from its Chinese supplier.

China is a central pillar of the global sulfuric acid trade. The country exported 4.6 million tonnes of sulfuric acid in 2025, with roughly 32 percent shipped to Chile, 15 percent to Indonesia, 12 percent to Morocco, 12 percent to Saudi Arabia and 9 percent to India. The latest trade data show that Chinese exporters shipped only 385,000 tonnes during the first two months of 2026, about half the volume recorded in the same period one year earlier, as a January to April export quota of 700,000 tonnes imposed by the National Development and Reform Commission was already tightening outbound flows.

The decision lands on a market already under severe stress. Since the start of the Iran conflict in late February 2026 and the effective closure of the Strait of Hormuz, sulfur prices have climbed by approximately 70 percent. The Middle East supplies around one third of the world's sulfur, with about half of seaborne sulfur trade transiting the strait. Sulfuric acid prices in Chile, the world's largest copper producer, have jumped 44 percent in a single month.

The consequences of the Chinese ban extend well beyond copper. Phosphate fertilizer production is the single largest end use of sulfuric acid worldwide, and Morocco, one of the top global phosphate exporters, relies on Chinese acid to process its ore. Reduced availability threatens to push up prices for diammonium phosphate and monoammonium phosphate, two staples of global agriculture, at the start of the Northern Hemisphere planting season. Food security concerns are expected to rise in countries that depend on imported phosphate fertilizers, including in South America, Africa and parts of Asia.

The copper mining sector is directly exposed. In Chile, roughly a fifth of national copper output relies on heap leaching and solvent extraction processes that consume large volumes of sulfuric acid. The Democratic Republic of Congo and Zambia, which together form the African Copperbelt, also depend on imported acid to operate hydrometallurgical plants. Some local producers, such as the Kamoa Kakula complex in the DRC, generate around 1,600 tonnes of sulfuric acid per day as a by product of on site smelting and sell it to neighboring mines, but this regional supply cannot offset the loss of Chinese cargoes. Indonesia's nickel industry, which processes laterite ores through high pressure acid leaching, faces similar pressure as it ramps up output for the battery materials market.

Zinc smelters worldwide will also feel the squeeze, since acid sales normally provide an important revenue stream for metallurgical operations. Uranium producers that rely on in situ leaching in Kazakhstan and elsewhere are another exposed segment. The chemical industry, including detergents, dyes, pigments, titanium dioxide and hydrofluoric acid production, uses sulfuric acid as a key reagent. Oil refining operations that use sulfuric acid alkylation units to produce high octane gasoline components could see higher operating costs. Battery manufacturing, including lead acid batteries for automotive and industrial backup power, is another sector that depends on stable acid supply.

The semiconductor industry is partially shielded because electronic grade sulfuric acid, used in wafer cleaning and etching, is exempt from the ban. However, supply chains for the broader chemicals ecosystem that underpins chip manufacturing remain under observation.

The United States is one of the largest global importers of sulfuric acid and is expected to feel cost pressure across its fertilizer, mining and chemical sectors. European buyers, Moroccan phosphate processors and Indian fertilizer plants are all scrambling to secure alternative cargoes from suppliers in Europe, Japan, South Korea and the Middle East, although spare capacity is limited. Analysts warn that the combined effect of the Strait of Hormuz disruption and the Chinese ban could keep global acid markets tight throughout 2026.