Market and product

More than five months after the conflict in Iran disrupted global sulfur and sulfuric acid (H₂SO₄) supply chains, the market has yet to show clear signs of recovery. In early August, tensions in the Strait of Hormuz — the lifeline shipping route for the world's sulfur trade — escalated again, deepening concerns over a prolonged supply disruption.

Hormuz Traffic Remains at a Trickle

Although the United States and Iran signed a ceasefire memorandum of understanding on June 17, 2026, shipping through the Strait of Hormuz has yet to return to normal. According to data from PortWatch, run by the International Monetary Fund (IMF), transits through the strait numbered only about 10 vessels per day by late July, far below the roughly 88 daily transits recorded before the conflict began.

The situation grew more complicated in the first week of August. Bloomberg reported that traffic through Hormuz remained very thin after an explosion involving an oil tanker and a strike on a cargo vessel by an unidentified projectile near the Omani port of Khasab on the nights of August 2 and 3. The fresh incidents have kept shipowners and carriers wary of transiting the route, even as talks between the US and Iran continue through Omani mediation.

Hormuz is a strategically critical route for the global sulfur market, carrying roughly half of all seaborne sulfur trade. Any disruption there can quickly ripple through to the raw-material supply needed for sulfuric acid production.

Chinese Supply Remains Constrained

Beyond the risks in the Middle East, the market is also under pressure from export restrictions imposed by China, the world's largest producer and exporter of sulfuric acid.

While there had been earlier signals that Beijing might ease its export controls around mid-year, updated reports as of July indicate the restrictions remain in place. Russia and Turkey have continued similar measures, meaning international supply has yet to see meaningful improvement.

Some Regions Ramp Up Output, but Shortfalls Persist

The market has shown some signs of adaptation. In North America, sulfuric acid prices have eased slightly thanks to steady supply from refineries along the US Gulf Coast.

In Northeast Asia, by contrast, prices have stayed elevated as sulfuric acid supply — a byproduct of copper and zinc smelting — has tightened, even as demand from the phosphate fertilizer and chemical processing sectors continues to rise.

In Africa, the Kamoa-Kakula mining complex in the Democratic Republic of Congo has increased its sulfuric acid output to support copper extraction. However, the additional volume covers only about a third of domestic demand, not enough to meaningfully reduce reliance on external supply.

Fertilizer and Mining Sectors Continue to Feel the Strain

Sulfuric acid is a key input for phosphate fertilizer production, with roughly 60% of global output used to make products such as DAP and MAP. As a result, the prolonged shortage continues to pressure fertilizer supply chains, particularly in import-dependent countries such as India and several African nations.

The mining sector has also been significantly affected. In Chile, the world's largest copper producer, many mining companies remain dependent on imported sulfuric acid for heap-leaching operations, driving up production costs amid an unstable global supply picture.

The latest developments suggest the sulfuric acid market has yet to enter a recovery phase. With tensions in the Strait of Hormuz still unresolved and export restrictions from major producing countries still in effect, global supply is likely to remain volatile in the months ahead.

Sources:

1. TankerMap. Hormuz tanker traffic stays thin as Aramco says July attacks caused no material disruption. August 3, 2026.
2. Bloomberg. Hormuz Traffic at a Trickle as Ship Attacks Heighten Concerns. August 4, 2026.
3. Alliance Chemical. Sulfuric Acid Supply Crisis 2026: The Sulfur Shortage. Updated July 20, 2026.
4. IMARC Group. Sulfuric Acid Price Index, Chart, Trend 2026 & Forecast.