Chinese acid export ban drives prices higher

Bullish sentiment in the sulphuric acid market has intensified amid the suspension of all Chinese sulphuric acid exports from May through the end of the year. Although no formal announcement has been issued by government authorities, smelters are reportedly preparing to implement the measure. The potential halt would follow the quota system imposed for January-April, which capped exports for the period at 700,000 tonnes – just over half the volume shipped during the same period last year. Both the quota and the anticipated suspension are designed to protect domestic supply.

A withdrawal of Chinese exports adds substantial pressure to a global market where supply is already tight. Prices have been on an upward trajectory since 2025 Q4 and are now at their highest levels since 2022 due to multiple factors, including demand from major consumers, constrained availability from key exporting regions, and elevated sulphur prices due to the escalation of conflict in the Middle East. The bullish tone has been reinforced by rising domestic sulphuric acid prices in China, increasing from an average of $161/t in late February to $214/t in March.