A recent official announcement has caused a stir in many circles such as the chemical industry, agriculture, and non-ferrous metals. Starting from May 1 this year, ordinary sulfuric acid will be temporarily banned from exporting.
Perhaps when many friends hear the word “sulfuric acid”, they think it is an industrial raw material that is far away from life and has nothing to do with their own stock trading and financial management.
In fact, this is not the case. This product, known as the “mother of chemicals”, is hidden behind countless industries such as fertilizers, new energy, metal processing, titanium dioxide, etc. Once the export policy is adjusted this time, the supply and demand pattern of related domestic industries will directly change, and many sectors will usher in real benefits.
This policy is not news spread online, but comes from formal public announcements, and the information is true and verifiable.
From May 1 to December 31, 2026, my country will implement temporary export controls on general industrial sulfuric acid and smelting by-product sulfuric acid. Simply put, these two types of sulfuric acid are temporarily not allowed to be sold abroad.
However, electronic-grade high-purity sulfuric acid used in high-end manufacturing fields such as chips and semiconductors can still apply for export in accordance with relevant regulations and is not within the scope of this control.
This arrangement is actually very clear. Common sulfuric acid with low added value and large output is kept in the country, giving priority to ensuring the demand of local industry, while high-end refined products retain normal circulation channels. It not only takes into account people’s livelihood and industrial rigid needs, but also conforms to the direction of industrial development.
my country itself is a major producer of sulfuric acid in the world, with a high proportion of global output. In previous years, it also had a considerable amount of exports, covering many overseas countries.
Now that all this export volume has been transferred to the domestic market, changes in supply and demand will naturally be transmitted to related industries and capital markets.
Many friends are curious, why is a good export business suddenly subject to temporary control?
In fact, it is not a random decision, but a reasonable arrangement based on the current domestic and international market environment and from multiple perspectives such as people’s livelihood protection and industrial safety.
The first and most direct thing is to ensure agricultural production and stabilize the supply of chemical fertilizers.
Sulfuric acid is an important raw material for the production of phosphate fertilizer, and phosphate fertilizer is an indispensable agricultural input for grain cultivation.
At this critical stage of agricultural production, the domestic demand for chemical fertilizers is stable and rigid. Keeping sulfuric acid in the country can effectively ensure sufficient raw materials for phosphate fertilizer production and avoid price fluctuations due to the outflow of raw materials, which will eventually be transmitted to the price of agricultural inputs and affect planting costs. This is a major livelihood issue closely related to the dining tables of thousands of households.
Secondly, the global supply of upstream raw materials is tight, which also forces the country to make reserves in advance.
The production of sulfuric acid is inseparable from sulfur, and my country’s sulfur is highly dependent on foreign countries. Recently, international shipping and origin supply have experienced periodic tensions, and sulfur prices have fluctuated significantly, which in turn has driven up the cost of sulfuric acid production.
If a large amount of sulfuric acid is still exported at this time, it is likely to cause tight domestic supply and higher prices, which will bring cost pressure to many downstream industrial enterprises.
In addition, this control is also guiding the industry to go high-end.
The production threshold of ordinary sulfuric acid is not high and the added value is limited, while electronic-grade high-purity sulfuric acid has high technical content and critical application scenarios.
By restricting the export of ordinary products and prioritizing resources for domestic new energy, high-end manufacturing and other industries, it can also promote the optimization of industry structure and allow superior resources to be used in more critical places.
When the world’s major sulfuric acid supplier countries initiated export controls, a chain reaction soon occurred in the international market.
Many countries that used to rely on my country’s sulfuric acid imports are facing pressure from shortages of raw materials in agricultural and mining production, and international sulfuric acid-related prices have also experienced significant fluctuations.
For the domestic market, the changes are more intuitive.
All the sulfuric acid originally intended for export remains in the country, and the market supply is relatively sufficient. At the same time, it can avoid the excessive impact of high international prices of raw materials, so that downstream industries do not have to worry too much about raw material supply shortages or skyrocketing costs.
In the past, sulfuric acid prices were easily affected by the international market and export flows, and experienced periodic fluctuations.
Now that the export channel is temporarily closed, the domestic market has formed a relatively independent supply and demand environment, and the price trend has become more stable. For production companies, it is conducive to stabilizing production plans and controlling operating costs, and the advantages of leading companies will be further highlighted.
Based on the actual operation of the industry, there are several core benefit directions.
The first is sulfuric acid production companies, with the most direct profit elasticity.
Especially for enterprises that mainly produce sulfuric acid, a by-product of smelting, and acid production from pyrite, part of the sulfuric acid was exported in the past, and their profit margins were suppressed by the international market.
Nowadays, all products are oriented domestically, and the superimposed price center tends to stabilize and rise, and corporate revenue and profits will see significant improvements.
Especially for leading companies with large production capacity and controllable raw material costs, not only are their sales volumes guaranteed, their pricing power in the market will also be increased, and their performance flexibility will be relatively more prominent.
Second, the phosphate fertilizer and phosphorus chemical sectors have stable costs and sufficient production capacity.
Sulfuric acid is the core raw material for phosphate fertilizer production. After export control, domestic sulfuric acid supply is sufficient. Phosphate fertilizer companies no longer have to worry about raw material shortages or sharp price increases, and production operating rates can remain stable.
At the same time, the tight supply of sulfuric acid in the international market has driven global fertilizer prices higher, and the export competitiveness of domestic phosphate fertilizer companies has also improved, forming a dual favorable situation of “controllable domestic costs and rising overseas prices”. The profitability of the entire industry is expected to steadily improve.
The third is non-ferrous metal smelting enterprises, with sulfuric acid as a by-product as an additional increase.
During the smelting process of metals such as copper and zinc, a large amount of sulfuric acid will be produced as a by-product.
In the past, these products were mostly exported at lower prices, with limited profit contribution.
Now that the sulfuric acid market environment has improved, these by-products are no longer “accessories”, but can become a new profit growth point for the company, effectively hedging the impact of price fluctuations in the main business, making the company’s overall profitability more stable.
Fourth is titanium dioxide and new energy materials companies, with worry-free and stable production of raw materials.
Sulfuric acid titanium dioxide, nickel sulfate, cobalt sulfate and other products in the new energy industry chain all have rigid demand for sulfuric acid.
After the export control of sulfuric acid, the domestic supply of raw materials is stable, and relevant companies can maintain a normal production rhythm without limiting production capacity due to raw material problems, which has a positive effect on maintaining order delivery and stabilizing operating performance.
Finally, I would like to remind everyone that although the export control of sulfuric acid has brought clear benefits to relevant sectors, market investment has never been a “guaranteed profit”. We must not only see opportunities, but also remain rational and not blindly chase highs or exaggerate expectations.
This export control is a temporary policy, and whether it will be adjusted later will depend on changes in domestic supply and demand and international markets; price fluctuations in upstream raw materials such as sulfur and changes in actual downstream demand will affect the prosperity of the sulfuric acid industry.
At the same time, there will be obvious differentiation within the sector. Only leading companies that truly have scale advantages, cost advantages, and integrated layout can continue to benefit. However, some small companies are limited by production capacity and costs, and their benefits are limited. We must not only look at concepts and ignore the fundamentals of the company itself.
The most important thing in investing is stability. Only by seeing the logic clearly, recognizing the risks, and not being biased by short-term emotions can you go further in the market.
The ban on the export of ordinary sulfuric acid from May 1st is essentially a reasonable measure to ensure domestic agricultural production and stabilize the industrial supply chain. It also directly benefits related industries such as sulfuric acid production, phosphorus chemicals, non-ferrous smelting, titanium dioxide and new energy materials.
The entire logical chain is clear and the policy guidance is clear. For relevant leading companies, there is positive support for profitability stability and growth space.
However, we must still adhere to rational judgment, not be superstitious about short-term market conditions, not blindly follow trends, and base ourselves on the fundamentals of the industry in order to truly seize deterministic opportunities.
