Sulphuric Acid Shortage Looms as China Bans Exports Amid Global Crisis
Sulphuric acid is the world's most widely used industrial chemical, essential for batteries, fertilisers, textiles, water treatment, petroleum refining, and computer chips. China, a major exporter of the chemical, relies on imported sulphur from the Middle East—approximately 50% of the global sulphur supply in 2025—to produce it.
In response to trade disruptions caused by the Iran war—including the closure of the Strait of Hormuz and damage to refineries—China banned sulphuric acid exports on May 1, 2025, to protect its downstream industries.
Impact on Australian Manufacturers
LoomTex, a textile manufacturer in Geelong, uses sulphuric acid for fibre innovation and dyeing. The company faces a difficult choice: order more acid (exceeding dangerous goods storage limits) or risk insufficient supply.
"Increasing storage to dangerous goods levels would require significant safety and regulatory changes," said CEO Samantha Van Zyl. "Without the acid, production could suffer and customers might turn to overseas manufacturers."
Fertiliser Industry Concerns
North West Phosphate, a Queensland phosphate mine, supplies fertiliser manufacturers that use sulphuric acid to process phosphate rock.
Chairman John Cotter expressed concern that if customers cannot obtain sulphuric acid, the company may need to divert to other markets, reflecting structural changes in global commodity trade due to the conflict.
Global Supply Outlook
Meena Chauhan, head of sulphur and sulphuric acid research at Argus Consulting Services, noted that alternative suppliers like Canada face logistical and volume challenges.
Fertiliser production is losing to the metal industry, which can absorb higher sulphuric acid prices, leading to reduced fertiliser output in South Africa and North Africa.
Even after the Strait of Hormuz reopens, oil and gas shipments will likely be prioritised over sulphur, potentially prolonging shortages. Damaged Middle Eastern facilities may take years to return to pre-war capacity.