China, the Iran war and the chemical suddenly stoking global supply fears

China’s reported decision to halt sulphuric acid exports, together with the failure of peace talks between the United States and Iran over the weekend, risks driving prices higher and disrupting global mining and fertiliser supply chains that have few readily available alternatives.Beijing had indicated it would halt shipments of sulphuric acid from May, according to reports from Acuity Commodities and Bloomberg, though no official announcement has been made. Economists said food security sat atop Beijing’s agenda and that the move would hit some countries especially hard.“Administrative controls are expected to amount to a de facto suspension of sulphuric acid exports from May 2026,” said Lynn Song, chief economist for Greater China at Dutch investment bank ING, though he added that he had not seen any official notifications from government agencies.“I’d imagine the intention would be to secure fertiliser supply, which is currently at risk thanks to the blockage of the Strait of Hormuz, which accounts for around a third of seaborne fertiliser trade as well as a lot of global sulphur exports.”For Beijing, he added, the contribution of sulphuric acid exports to gross domestic product was far less important than the broader goal of safeguarding food security.China was the world’s largest sulphuric acid exporter in 2025, with the total valued at US$290 million, according to the Observatory of Economic Complexity. The main destinations for these shipments included Chile, Indonesia, Saudi Arabia, Morocco and India.While most commonly used to manufacture fertiliser, sulphuric acid is also vital to the broader chemical industry, where it is used to process minerals and waste water, refine oil and synthesise chemicals.