China to Restrict Sulfuric Acid Exports After Rare-Earth Curbs, as War in Iran Disrupts Production

[Financial News] China, which rattled global supply chains last year by restricting exports of rare-earth elements, is now expected to stop exporting sulfuric acid, a key ingredient for fertilizers and many industrial intermediates, starting next month. Market observers say the world’s largest producer of sulfuric acid could keep exports suspended for the rest of the year.
Citing industry sources, foreign media including the Washington Examiner reported on the 12th (local time) that several sulfuric acid producers in China recently received government notices instructing them to halt exports from next month. Large local buyers also said their suppliers had passed on similar information.
Sulfuric acid is used in the leaching process to extract metals from ores such as copper, nickel and uranium, and it is also needed to clean wafers during semiconductor manufacturing. In addition, it is a feedstock for phosphate fertilizers and a crucial basic material for the refining and battery industries.
Sulfuric acid is mainly produced by processing elemental sulfur or by refining sulfur dioxide (SO2) generated during copper and zinc smelting. Prices surged earlier this year as tensions in the Middle East escalated with the war in Iran. Oil-producing countries in the region have long sold sulfur, a by-product of crude oil refining, on the international market, and at least one-third of the world’s sulfur supply comes from the Middle East. The price of sulfuric acid was 464 yuan (about 100,000 won) per ton last year, but concerns over sulfur supply disruptions, including possible blockades of the Strait of Hormuz, pushed it up to 1,045 yuan (about 220,000 won) early this year.
According to The Observatory of Economic Complexity (OEC), China ranked first in sulfuric acid exports in 2024, shipping 349 million dollars’ worth, or about 519.4 billion won. This accounted for 14% of global export value. Over the same period, the largest importer of sulfuric acid was Chile, the world’s top copper producer.
China’s latest export restrictions on sulfuric acid are expected to weigh on farmers ahead of the planting season, as well as on mines in major copper-producing countries such as Chile, the Democratic Republic of the Congo (DR Congo) and Zambia. Chile imports more than 1 million tons of Chinese sulfuric acid annually, and about 20% of its total copper output depends on processes that use sulfuric acid. China, the world’s largest producer of rare-earth elements, also curbed rare-earth exports during last year’s trade war with the United States, threatening the global semiconductor industry.
Sina Finance commented on the outlook for sulfuric acid prices, stating, "Most sulfuric acid plants are currently operating at maximum capacity, but the supply shortage will not be easily resolved." It also predicted that prices would "remain elevated due to cost pressures and tight supply." British commodities research firm Acuity Commodities forecast that China could maintain its sulfuric acid export restrictions throughout this year.
pjw@fnnews.com Jong-won Park Reporter