Amid disruption from Iran war, China quietly turns off sulfuric acid supply
China has moved to guard its supply of the world’s most used industrial chemical compounds, with ramifications for all the things from meals manufacturing to style and cellphones.
Sulfuric acid is an important ingredient within the manufacture of batteries, clothes and phosphate fertilizers, and can also be used to deal with consuming water, purify petroleum, and produce some metals and laptop chips.
China is a key exporter, but it surely depends on imported sulfur — itself a by-product of oil refining and smelting — to make it.
In 2025, about half of the worldwide sulfur supply got here from the Middle East.
With commerce disrupted, Beijing has banned exports of sulfuric acid to shore up its home supply.
It means Australian producers are going through a tough alternative: both replenish on the extremely corrosive and flamable chemical or go with out their key ingredient.
The key ingredient’s key ingredient
In Geelong in south-western Victoria, textile producer LoomTex is attempting to maintain its heritage of weaving, dying and milling alive via sustainable materials.
Chief govt Samantha Van Zyl mentioned sulfuric acid was considered one of a number of chemical compounds relied on in analysis and improvement.
Samantha Van Zyl says sulfuric acid is a needed ingredient in making textiles. (Supplied: Loomtex)
“It’s critical as an auxiliary step in the lab … for fiber innovation,” she mentioned.
The supply disruption places the corporate in a tough place.
Ms Van Zyl mentioned they had been left with the selection to both order extra sulfuric acid than regular, which places them above the brink for storing harmful items, or not have sufficient supply.
“Increasing to the dangerous goods limit actually means that we’re changing the shape of our business,”
she mentioned.
“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 one thing that may be finished in a single day.”
Samantha Van Zyl says LoomTex is struggling to supply three kinds of acid, together with sulfuric. (Supplied: Kate Ballis)
Ms Van Zyl said that without the acids, production would suffer, and she could lose customers to overseas manufacturers.
“That’s a vulnerability and a threat I do not suppose that we might look to take at this cut-off date,” she mentioned.
LoomTex depends on a number of kinds of acid in its manufacturing course of. (Supplied: Stu Ross/Milk Video)
Sulfuric acid is made in two ways: either by using sulfur or as a by-product of metal smelting.
Head of sulfur and sulfuric acid research at Argus Consulting Services, Meena Chauhan, said the acid was produced worldwide, but China was the lead exporter.
“Last 12 months, they exported shut to five million tons for the primary time,” she mentioned.
“It’s a considerable quantity in that international commerce movement.“
China relies on importing sulfur, a by-product from oil refining and gas processing, to make sulfuric acid.
In 2025, about 73 million tonnes of sulfur were produced globally.
“We estimated that Middle Eastern commerce represented about 50 per cent of world commerce flows,” Ms Chauhan mentioned.
The Middle East represents greater than half of the worldwide sulfur commerce. (Reuters)
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.
“Some websites are being taken offline due to injury; in different instances due to precautionary measures,”
she mentioned.
She said China’s ban on exporting sulfuric acid, which came into effect on May 1, was an attempt to protect their “downstream industries” from disruption.
Attention is turning to other sulfur-exporting countries like Canada for an alternative supply, but Ms Chauhan said there were issues with logistics and volume.
Australia produces some sulfuric acid for its domestic market from metal smelting in Queensland, but not at the grade Ms Van Zyl’s textile lab requires.
But native provides might assist the main finish person of each sulfur and sulfuric acid — the fertilizer trade.
Building block of meals safety
North West Phosphate mines phosphate rock and concentrate in Queensland, which is used by fertilizer manufacturers throughout South-East Asia.
Chairman John Cotter mentioned sulfuric acid was a important aspect for his prospects.
John Cotter says modifications within the fertilizer commerce may have an effect on his enterprise. (ABC North West Qld: Emily Dobson)
“Most of these producers use sulfur combined with water to create sulfuric acid combined in with phosphate rock,” he mentioned.
“That offers you the essential substances for all the fertilizer blends that you just discover within the outlets.”
So far, his enterprise had not been impacted, however Mr Cotter anticipated it to occur quickly.
“For suppliers like us, we’re frightened that if [customers] cannot get the opposite fundamental ingredient to fabricate, then we’d should entertain to different markets,”
he mentioned.
“These are the kind of structural modifications within the buying and selling market of commodities globally that we’re seeing because of the battle.”
Ms Chauhan mentioned Mr Cotter’s fears had been warranted.
Versatility and variability
Sulfuric 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, Ms Chauhan said fertilizer production could not compete.
“In some markets, South Africa, we have seen [reduced production]”she mentioned.
“We’ve seen in North Africa as effectively, a key fertilizer producer saying that they will have a discount of their output of fertilizers.“
Once the Strait of Hormuz is reopened, Ms Chauhan said shipments of oil and gas would likely be prioritized over sulfur, potentially dragging out shortages for years.
Additionally, she said sulfur 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 battle is impacting revenues, impacting the timelines for these initiatives that may now seemingly find yourself with delays via till subsequent 12 months, probably even past subsequent 12 months,” she said.
Back in the Geelong textile warehouse, Samantha Van Zyl is carrying on, despite the odds.
“It is a bit stacked up [against you]”she mentioned.
“But you simply get up, put a smile in your face and pull up your sleeves and get into it,”
she mentioned.
“It’s all we are able to do, actually.”
LoomTex makes use of sulfuric acid in its dye course of. (Supplied: Stu Ross/Milk Video)
