China's Reported Sulphuric Acid Export Ban Sparks Global Buyer Concerns

The global chemical market is bracing for significant disruption as reports emerge of China implementing a ban on sulphuric acid exports starting in May. This move, affecting a chemical vital for industries ranging from fertilizer production to battery manufacturing, comes at a precarious time. Global supply chains have already been strained by the ongoing conflict in the Gulf and the resulting blockade of the Strait of Hormuz, which had previously stalled shipments from a region accounting for a quarter of global production. China's dominance in the sulphuric acid trade cannot be overstated; last year, it supplied 45% of the nearly 10 million tonnes of the chemical shipped from Asia and about 23% of all global exports. The potential halt in these shipments has left international buyers scrambling for alternatives, raising fears of price volatility and shortages. Analysts warn that this decision underscores China's position as a linchpin in the trade of critical materials, a role that could be leveraged in future geopolitical or economic negotiations. The total export value of China’s sulphuric acid last year reached US$290 million, with key destinations including Chile, Indonesia, Saudi Arabia, Morocco, and India. This year, the US has also emerged as a top importer, further emphasizing the widespread impact of this potential export freeze.

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significant implications