Rising Sulfuric Acid Prices in Chile Strain Copper Production Amid China's Export Restrictions
China's decision to halt sulfuric acid exports starting May 2026 has caused prices in Chile to soar beyond $300 per ton, impacting copper production costs significantly. The demand-supply gap highlights the need for strategic long-term planning in the Chilean mining sector.
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Sulfuric acid prices in Chile have surged 44%, exceeding $300 per ton due to China's export restrictions. Chile requires 8.9 million tons of sulfuric acid by 2025 but only produces 5 million tons domestically, creating a significant shortfall.
Approximately 1.5 million tons of imported acid came from China, which represents 38% of total imports. The impact on production costs for copper cathodes via SX-EW processes is substantial, particularly for mines with lower ore grades.
An increase of $100 per ton in acid prices could raise production costs by up to 52.3 cents per pound of copper. Long-term contracts secured by major producers may mitigate immediate risks, but strategic adjustments are essential to address future uncertainties in supply and pricing.
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