China Bans Sulfuric Acid Exports Amid Iran Conflict, Impacting Global Supply Chains

China has announced a ban on sulfuric acid exports starting in May 2026, a critical chemical used in the metals and fertilizer industries. This decision comes as the ongoing Iran conflict has already strained supply chains, particularly through the Strait of Hormuz, which has disrupted sulfur shipments. The ban is expected to exacerbate existing shortages, particularly affecting countries like Chile that rely heavily on Chinese sulfuric acid for copper production. Prices for sulfuric acid have surged due to these supply constraints, with significant impacts anticipated on agricultural sectors and grocery prices. The ban could last throughout 2026, further complicating the already tight market for sulfuric acid. Analysts warn that the agricultural industry will face compounded pressures from rising fertilizer costs, as both sulfuric acid and urea prices are increasing. The Commonwealth Bank has highlighted that the agricultural sector is particularly vulnerable due to these developments.

Key Points: • China's export ban on sulfuric acid begins in May 2026, affecting global supply chains. • The ban is a response to supply disruptions caused by the Iran conflict and impacts key industries. • Countries like Chile, reliant on sulfuric acid for copper production, will face significant price increases.