In a landmark move with far-reaching implications for global chemical markets, China suspended all exports of ordinary industrial sulphuric acid starting May 1, 2026.
China accounts for approximately 23% of global sulphuric acid exports and 40-45% of all sulphuric acid shipped out of Asia. In 2025, the country exported a record 4.65 million tonnes of chemicals, making this export halt not just a trade policy shift but a structural rupture in global supply chains. The suspension is expected to remove at least 3 million tonnes from the seaborne market through the end of 2026.
This decision arrives at the worst possible moment for global markets, coinciding with the closure of the Strait of Hormuz since late February 2026 due to the Iran conflict a route that carries approximately one-third of global fertilizer trade and a substantial portion of global sulphur exports. Together, these two shocks have created an unprecedented double squeeze on the foundational input chemical that underpins fertilizers, copper mining, battery production, semiconductors, and oil refining.
China Move
Why China Made This Move?
- Domestic Food Security.
- Upstream Sulphur Supply Disruption
- Strategic Resource Control
Global Market Implications
Sulphuric acid is in the middle of a structural repricing cycle, with market fundamentals resetting around feedstock scarcity and strong fertilizer-linked demand. With no meaningful short-term substitutes for Chinese supply. The entire global market is being forced to reprice upward simultaneously. In four weeks of May 2026 India prices increased by 19% and the last week China & Japan prices increased by 4%.
For more such details visit Price-Watch™. Our platform delivers real-time data of sulphuric acid market. Covers China, India, Japan, Mexico, South Korea, Spain. Also track critical events such as geopolitical tensions, supply chain disruptions, and economic shifts. Price-Watch™ Track Sulphuric Acid price assessment on a weekly basis from 2015 onwards along with short term forecasts and get access to the detailed report in downloadable format.
Source: Price-Watch™ Sulphuric Acid Prices
Chile, India, Democratic Republic of Congo, Zambia, Indonesia, and Peru are expected to most affected countries due to their high dependence on sulphuric acid for mining, metal processing, and fertilizer production.
Industry-Wise Impact Analysis
Fertilizers and copper mining face the highest disruption risk due to their direct dependence on sulphuric acid, while battery materials and nickel processing may experience significant cost escalation.
Supply Chain & Value Chain Implications
Conclusion: A Structural Shift, Not Temporary Disruption
China’s suspension of sulphuric acid exports is not a temporary market correction. It is a structural inflection point in global industrial chemical trade. By quietly positioning itself as the dominant exporter of a foundational input chemical, China has now demonstrated the ability to exert significant leverage over global fertilizer production, copper mining, battery manufacturing, and broader industrial chemistry.
The market will eventually rebalance through new capacity, demand destruction, and policy responses but the adjustment will take years, not months.
For procurement leaders, supply chain executives, and policymakers, the lesson is unambiguous. Industrial chemicals that were once treated as abundant commodities have become geopolitically sensitive strategic inputs.
The era of assuming unlimited, price-competitive Chinese supply for foundational industrial chemicals is over. Diversification, resilience investment, and strategic reserve creation are now urgent priorities across every industry in this chemical’s value chain.
For more such details visit Price-Watch™. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the fertilizer (DAP, Ammonia, Sulphur, Ammonium Nitrate, SSP, Urea, TSP etc) market. By tracking critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, Price-Watch™ keeps you fully informed of market dynamics.
Track Price-Watch™ fertilizer price assessment on a weekly basis from 2015 onwards along with short term forecasts and get access to the detailed report in downloadable format.
Follow Price Watch™ on LinkedIn for real-time raw material insights, pricing trends, supply chain intelligence, and market updates shaping global commodity markets.