A little-watched industrial chemical is suddenly at the center of global commodity market turmoil.
Economist Steve Hanke noted China’s sulfuric acid export prices have surged to nearly 12 times their May 2024 levels amid disruptions tied to the U.S.-Israeli war on Iran, citing Argus data shared in a post on X.
“We’re entering a commodity supercycle. You want to be long commodities,” Hanke wrote on Thursday.
Middle East Disruptions Hit Global Supply Chains
The rally comes as sulfur and sulfuric acid markets tighten sharply following disruptions in the Middle East and new Chinese export restrictions.
Last week, S&P Global reported that sulfuric acid CFR U.S. Gulf prices climbed to $400 per metric ton on May 6, up from $155 per ton before the conflict escalated in late February.
The Middle East typically accounts for nearly half of global seaborne sulfur exports, according to S&P Global.
China, meanwhile, has tightened sulfuric acid exports to protect domestic fertilizer supply, further squeezing global availability.
Analysts told S&P Global that the restrictions could disrupt copper and nickel production in countries heavily reliant on Chinese acid exports, including Chile and Indonesia.
Why Markets Are Paying Attention
Sulfuric acid is widely used in fertilizer production, copper processing and battery metals extraction, making it an important barometer for industrial activity.
Reuters recently reported that the shortage is spreading across global commodity markets, raising costs for miners and fertilizer producers alike.
The latest surge has revived Wall Street discussion around a broader commodity supercycle driven by supply shocks, geopolitical tensions and structural shortages across raw materials markets.
Image via Shutterstock
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