How will China's potential export restrictions on sulfuric acid affect global markets?

How will China's potential export restrictions on sulfuric acid affect global markets?
China is reportedly planning to restrict or suspend some sulfuric acid exports from May 2026, likely in response to Middle East supply disruptions. The feedstock sulfur chain is the key driver: the Middle East accounts for about 40% of global sulfur output and over 45% of trade, while China depends on imports for over 50% of its sulfur needs, with 56% coming from the Middle East. Domestic sulfur prices hit a record near 6,300 yuan per tonne in April, pushing sulfuric acid prices to 1,860 yuan per tonne versus roughly 460 yuan in early 2024. Since about half of global sulfuric acid goes into phosphate fertilizers, plus copper processing, tighter Chinese exports would amplify input cost inflation across food and metals, pressuring currencies in importing nations like Indonesia, Chile, and Morocco.