Chile’s copper industry, the world’s largest, faces a severe threat as China halted sulphuric acid exports to the South American nation in March, with a potential ban looming from May. This chemical, vital for producing over half of Chile’s refined copper, underpins 1.1 million tons of annual leached copper output—more than 50% of its 2 million tons of refined production and a fifth of its total 5.5 million tons of copper content.
Chinese customs data reveals zero sulphuric acid shipments to Chile last month, a sharp drop from 31,870 metric tons in February 2026 and 151,268 tons in March 2025. Chile, which relies on imports for 37% of its acid needs—with China supplying 20% of the volume used in leaching—is now grappling with a supply void exacerbated by a global sulphur crunch tied to Middle East conflicts. A formal export ban by China, aimed at securing domestic needs for its fertilizer sector, could deepen the crisis.
“If sulphur supply tightens, acid availability becomes more constrained and expensive,” said Alexis Urbani, a sulphuric acid trader with Incotrade Chile. “That can directly impact cathode production, especially for operations relying on secondary sulphides or lower-grade ores, where acid consumption is higher.”
The timing couldn’t be worse for Chile, already navigating strained ties with Chinese smelters over tight copper ore supplies and favorable treatment charges for miners. While China’s overall acid exports held steady at 143,381 tons in March, with increased shipments to the Philippines, India, and Indonesia, Chile’s unique dependence on imports leaves it exposed.
Bold Baatar, chief commercial officer at Rio Tinto, co-owner of Chile’s massive Escondida mine, highlighted the country’s vulnerability at a recent conference. He noted that Chile processes the highest volume of leached copper globally, making it acutely sensitive to supply disruptions.
Morgan Stanley estimates that while the impact on output may not be immediate due to the slow pace of leaching, the risk to Chile’s 1.1 million tons of leached copper production remains a pressing concern for global markets in 2026.
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