China Has Quietly Turned Off Sulphuric Acid Supply.

Beijing; May 2026: Sulphuric acid, which is a crucial ingredient in the manufacture of batteries, clothing and phosphate fertilisers, and also used to treat drinking water, purify petroleum, and produce some metals and computer chips, has been sanctioned by China in protecting its supply. China is the undisputed leader in the form of a key exporter of the world’s most used industrial chemical, with ramifications for everything from food production to fashion and mobile phones.

But China largely relies on imported sulphur itself, which is a by-product of oil refining and smelting it.

In 2025, about half of the global sulphur supply came from the Middle East. With trade disrupted, Beijing has banned exports of sulphuric acid to shore up its domestic supply, which compels the Australian manufacturers leaving with a difficult choice: either stocking up on the highly corrosive and combustible chemical or to continue without their key ingredient.

In Geelong which is the South-Western Victoria of Australia, textile manufacturer LoomTex is trying to keep its heritage of weaving, dying and milling alive through sustainable fabrics. Chief Executive Samantha Van Zyl said sulphuric acid was one of several chemicals relied on in research and development. “It’s critical as an auxiliary step in the laboratory for fibre innovation. The supply disruption puts the company in a difficult position”, while adding further, “they were left with the choice to either order more sulphuric acid than normal, which puts them above the threshold for storing dangerous goods, or not have enough supply. Increasing to the dangerous goods limit actually means that we’re changing the shape of our business”, she said.

The Chief Executive has further asserted, “We’d have to bring in WorkSafe Victoria; the fire hazards and safety risks on site as a chemical risk profile completely change. It’s not something that can be done overnight. Without the acids, production would suffer, and we can lose customers to overseas manufacturers. That’s a vulnerability and a risk I don’t think that we would look to take at this point in time”.

Sulphuric acid is made in two ways: either by using sulphur or as a by-product of metal smelting.

Head of sulphur and sulphuric acid research at Argus Consulting Services, Meena Chauhan, said the “acid was produced worldwide, but China was the lead exporter. Last year, they exported close to 5 million tonnes for the first time. It’s a substantial volume in that global trade flow. China relies on importing sulphur, a by-product from oil refining and gas processing, to make sulphuric acid”.

In 2025, about 73 million tons of sulphur were produced globally. “We estimated that Middle Eastern trade represented about 50 per cent of global trade flows”, Meena Chauhan said, while adding further she said the effect of the Iran war on supply was twofold: the closed Strait of Hormuz stopped vessels carrying it, and damage was caused to refineries and processors in the region that produced it.

While some sites are being taken offline because of damage; in other cases, because of precautionary measures. China’s ban on exporting sulphuric acid, was an attempt to protect their downstream industries from disruption. Attention is turning to other sulphur-exporting countries like Canada for an alternative supply, but Chauhan said there were issues with logistics and volume.

Australia produces some sulphuric acid for its domestic market from metal smelting in Queensland, but not at the grade Ms Van Zyl’s textile lab requires. But local supplies may help the leading end user of both sulphur and sulphuric acid of the fertiliser industry.

It is the North West Phosphate mines phosphate rock and concentrate in Queensland, those which are used by fertiliser manufacturers throughout South-East Asia. Chairman John Cotter said sulphuric acid was a critical element for his customers. “Most of those producers use sulphur mixed with water to create sulphuric acid mixed in with phosphate rock. That gives you the basic ingredients for all of the fertiliser blends that you find in the shops”. So far, his business had not been impacted, but Mr Cotter expected it to happen soon.

“For suppliers like us, we’re worried that if the customers can’t get the other basic ingredient to manufacture, then we might have to divert to other markets. These are the sort of structural changes in the trading market of commodities globally that we’re seeing as a result of the conflict”.

Meanwhile, John Cotter’s apprehensions were vetted by Meena Chauhan.

Sulphuric acid did not become the world’s most widely used industrial chemical based on its versatility alone. As the by-product of a by-product, historically, it has also been pretty cheap. But with demand for both chemicals also coming from the metal industry, which can absorb higher prices, Meena Chauhan said fertiliser production could not compete.

“In some markets, South Africa, we’ve seen reduced production. We’ve seen in North Africa as well, a key fertiliser producer announcing that they’re going to have a reduction in their output of fertilisers.

Once the Strait of Hormuz is reopened, shipments of oil and gas would likely be prioritised over sulphur, potentially dragging out shortages for years”, Chauhan reiterated.

Additionally, she said sulphur producers had reported it could be years before damaged facilities were back to pre-war capacity. Before the war, the oil and gas industry had been expanding in the Middle East, which would also have increased production, but Ms Chauhan said those projects were also now on hold.

“The war is impacting revenues, impacting the timelines for these projects that will now likely end up with delays through until next year, potentially even beyond next year”, Chauhan said.

Back in the Geelong textile warehouse, Samantha Van Zyl is carrying on, despite the odds. “It is a bit stacked up against you. But you just wake up, put a smile on your face and pull up your sleeves and get into it. It’s all we can do, really”, Van Zyl expressed ger anguishment.

Team Maverick.