In early May 2026, Beijing abruptly halted all sulfuric acid exports — a decision that has rippled through global copper supply chains with particular force in Chile, the world's largest copper producer. Sulfuric acid is an indispensable input for solvent extraction-electrowinning (SX-EW) operations, which account for a significant share of Chile's refined copper output. Without reliable acid supply, leaching operations slow, recoveries fall, and production guidance comes under pressure. (FACT: CNBC, May 2026)
JPMorgan's analysis places the scale of the problem in stark relief: roughly 15% of global copper production depends on sulfuric acid as a critical reagent. (FACT: JPMorgan, May 2026) Chile's copper industry is disproportionately exposed because its vast oxide ore deposits require acid leaching rather than traditional flotation. The timing could hardly be worse. Teck Resources' Quebrada Blanca Phase 2 (QB2) in northern Chile had already downgraded its 2026 production guidance due to commissioning delays and ramp-up challenges. (FACT: Mining.com, May 2026) Meanwhile, Codelco's El Teniente — the world's largest underground copper mine — suffered a fatal accident in May that curtailed output, compounding the supply pressure from the acid shortage.
China, the world's dominant sulfuric acid producer, typically exports substantial volumes to Chile, Peru, and other copper-producing nations. The export halt appears to be driven by domestic environmental constraints and feedstock allocation priorities rather than any direct geopolitical calculation. Yet the effect is the same. Chilean buyers are now scrambling for alternative supply from the Middle East and North America, where sulfur feedstocks originate from oil and gas desulfurization. However, the Strait of Hormuz transit route — critical for Middle Eastern sulfur — faces elevated disruption risk given the ongoing Iran conflict. (FACT: CNBC, TradingEconomics, May 2026)
The sulfuric acid export ban introduces a new and poorly hedged variable into the copper supply equation. Unlike mine disruptions, which are typically discrete and time-limited, the acid shortage threatens a broader and potentially more persistent drag on refined output. Chilean SX-EW operations may need to run at reduced throughput for months as alternative acid supply chains are established. For copper buyers, this argues for a cautious stance on spot availability through Q3 2026. The acid bottleneck compounds existing disruptions at Grasberg, Kamoa-Kakula, and El Teniente, creating a supply environment where incremental disruptions carry outsized price impact. Procurement teams should stress-test their supply plans against a scenario where Chilean refined output falls 5-10% on acid shortages alone.