China’s Sulfuric Acid Export Halt Raises Global Supply Fears
- Eunyo Hwang
- May 1
- 2 min read
May 1, 2026
Eunyo Hwang
China’s reported decision to halt sulfuric acid exports beginning in May is expected to send shockwaves through global metals and fertilizer markets, which are already under strain due to geopolitical tensions in the Middle East. The move has also raised concerns that China may be expanding its use of resource control as a strategic tool.
According to the South China Morning Post, China—currently the world’s largest exporter of sulfuric acid—recently instructed domestic producers to suspend overseas shipments. While there has been no official confirmation from the Chinese government, industry sources indicate that the policy could take effect in the near term.
Prices for sulfuric acid have surged this year, largely due to disruptions linked to tensions between the United States and Iran. The closure of the Strait of Hormuz—a vital corridor for global trade—has significantly constrained supply from the Middle East, which accounts for roughly a quarter of global production.
Spot prices have climbed from around 1,000 yuan per ton at the start of the year to nearly 1,800 yuan by the end of last month. Even earlier levels were already more than double those of the previous year, reflecting sustained upward pressure.
Should China fully implement the export halt, analysts warn that supply shortages could deepen further, intensifying price volatility. China accounted for approximately 45 percent of Asia’s sulfuric acid exports last year and about 23 percent globally, supplying key markets such as Chile, India, and Saudi Arabia.
The policy is widely interpreted as part of Beijing’s broader focus on food security, as sulfuric acid is essential for fertilizer production. However, higher fertilizer costs may ultimately translate into rising food prices, with potential implications for global food stability.
Beyond agriculture, the impact is likely to extend to electric vehicle batteries and manufacturing sectors reliant on the chemical. Industry observers also caution that other materials, such as magnesium—of which China produces about 90 percent globally—could be subject to similar export controls in the future.
