China Sulfuric Acid Exports Collapse 99% in June, Squeezing Chile and Indonesia

China's sulfuric acid exports nearly disappeared in June 2026, according to customs figures released on July 20. Shipments fell to just 980 tons, a drop of 99.2 percent from 116,703 tons in May. Chile and Indonesia, the country's two largest buyers in 2025, received no cargoes at all. Thailand became June's top destination with only 264 tons, followed by Vietnam with 223 tons. Over the first half of 2026 China still exported 784,362 tons, but the June reading shows how completely the outbound trade has now stopped.

The collapse is the result of a deliberate policy. China is the world's largest sulfuric acid producer, and much of its output is a byproduct of copper and zinc smelting. Beijing first capped exports with a quota for the January to April period, then moved to halt overseas shipments from May 1 to protect domestic fertilizer production and food security. The trigger was the disruption of Middle East sulfur supplies. Sulfur is the main feedstock for sulfuric acid, and the effective closure of the Strait of Hormuz since early March 2026 has cut off a large share of the seaborne sulfur that Asian producers rely on.

The effects built up gradually before the June cliff. Chinese shipments to Chile had already fallen to zero as early as March, and a small volume of previously contracted cargoes continued to clear customs into May. The June data confirms that the controls are now fully in force. In 2025 Chile took about 32 percent and Indonesia about 15 percent of China's 4.65 million tons of exports. Between January and May 2026 the two nations together still absorbed roughly 46 percent of what China sent abroad, so their sudden move to zero leaves a significant gap in the global market.

The buyers most exposed sit in mining. Chile uses sulfuric acid to leach copper from ore in its heap-leach operations, and Indonesia depends on it for high-pressure acid leaching (HPAL) at its nickel plants. Analysts estimate that around a fifth of the world's mined copper is produced using acid-based methods, which makes Chile, the largest copper producer, especially vulnerable. The suspension of Chinese supply leaves Chile short by an estimated 125,000 tons of acid a month for its wet-process copper output.

Prices reacted sharply through the spring. The Platts benchmark for acid delivered to Mejillones in Chile roughly doubled to about 380 dollars a ton by mid-April, up from around 190 dollars before the Middle East conflict escalated, with one weekly jump of nearly 27 percent. Across affected regions, spot acid prices have climbed by as much as 156 percent. The squeeze added to the pressure that pushed copper to record highs above 14,000 dollars a ton earlier in the year.

Large producers have cushioned the blow so far. Codelco and other major Chilean miners locked in acid volumes for the full year before prices spiked, and domestic Chilean suppliers cover near-term needs. Smaller operators buying on the spot market face the sharpest cost increases. Chilean buyers secured much of their first-half requirement but left a large part of the second half uncovered, so they will have to return to the market soon and may turn to Europe or India for alternative barrels.

Other supply lines have tightened at the same time. Russia extended its own sulfur export ban through June, Turkey announced restrictions, and the Democratic Republic of Congo reduced volumes. New acid capacity typically takes 18 to 24 months to build, so there is no quick substitute at scale.

As of late July 2026 the Chinese halt remains in place, and the Strait of Hormuz is still contested, which keeps the underlying sulfur shortage unresolved. Several analysts expect the export restrictions to last through the rest of the year. The disruption could also rebound on China's own copper smelters, since revenue from selling acid as a byproduct had helped offset processing fees that have fallen below zero.