Hormuz Closure Disrupts Copper Output as Acid Supply Tightens

The closure of the Strait of Hormuz, alongside China’s decision to halt exports of sulfuric acid from May 1, is tightening global supplies of a critical chemical used in copper production. The combined effect is placing mounting pressure on both the agricultural and mining industries, which depend heavily on acid-intensive processes. 

Chile, a major hub for copper production and the largest importer of sulfuric acid, is particularly vulnerable to rising costs. At the same time, prolonged geopolitical tensions between Iran and the United States, including a blockade targeting Iranian ports, are extending supply chain disruptions. 

This is increasing input cost risks not only in Latin America, but also in agricultural and industrial sectors in countries such as Mexico. Industry leaders have warned that a prolonged shutdown of the strait could significantly strain global supply networks. 

Sulfur and sulfuric acid are essential inputs in extracting copper from oxide ores, and any sustained disruption is already driving prices higher while threatening output levels. Around one-fifth of global copper production relies on sulfuric acid for leaching. The Middle East typically supplies more than 40% of global sulfur exports, much of which passes through the Strait of Hormuz. 

Current disruptions have effectively removed a large share of seaborne sulfur from the market, intensifying cost pressures across the copper sector and raising concerns about supply availability. 

China’s upcoming export ban is also compounding an already tight market. As the world’s second-largest exporter of sulfuric acid, the East Asian country has been supplying roughly 2.7 million tons annually, much of it generated as a by-product of copper and zinc smelting. Its withdrawal will significantly reduce global availability. 

Chile stands out as the most exposed to this shift, given its reliance on imported acid. Globally, fertilizer production accounts for more than half of sulfuric acid demand, followed by chemical manufacturing and metals processing. Copper production represents a major share within the mining segment. Analysts expect the restriction to drive higher costs across these sectors, with copper producers facing the most immediate impact. 

Spot prices for sulfuric acid have already surged beyond $500 per ton and could rise further if supply constraints persist. 

Some mining operations are better insulated. Projects that produce sulfuric acid internally as a by-product are less exposed to import disruptions. Others are implementing contingency measures, including securing fuel supplies, to maintain operations amid ongoing uncertainty. 

These developments come as diplomatic disagreements between Iran and the U.S. remain unresolved after recent talks failed to produce a way forward. In response, the U.S. imposed a blockade affecting vessels linked to Iranian ports, further restricting traffic through the already strained Strait of Hormuz. 

As acid supply constraints play out, mine development companies like Numa Numa Resources Inc. are likely to pick up lessons and plan how to guard against operational disruptions of this nature in the future. 

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