Iran War’s Sulfurous Fallout Spreads to Copper and Nickel – by Andy Home (Reuters – April 17, 2026)

Key Takeaways

• Sulfur supply halted after Strait of Hormuz closure
• China’s export ban and Turkey’s ban intensify sulfur squeeze
• Record‑high sulfuric acid prices pressure copper and nickel plants
• Fertilizer sector consumes ~66% of global sulfur demand
• Metals producers may face output cuts or seek alternative chemistries

Pulse Analysis

The closure of the Strait of Hormuz in late February has turned a regional conflict into a global commodities shock. Sulfur, a by‑product of Gulf oil and gas operations, accounts for roughly 25% of worldwide production, according to the U.S. Geological Survey. With the main transit route blocked, the flow of sulfur to downstream markets has been effectively trapped, prompting a rapid price escalation that now tops historic levels.

For copper miners employing solvent‑extraction on oxide ores and for nickel producers running high‑pressure‑acid‑leach (HPAL) plants, sulfuric acid is a non‑negotiable input. The sudden scarcity forces plants to either absorb higher input costs or curtail throughput, a dilemma amplified by the fact that two‑thirds of global sulfur demand fuels fertilizer manufacturing—a sector governments deem essential for food security. China’s decision to ban sulfur exports next month, combined with Turkey’s existing ban and India’s pending restrictions, tightens the market further, leaving metal producers scrambling for alternatives.

The broader market impact extends beyond immediate cost pressures. Elevated sulfur prices can translate into higher copper and nickel prices, feeding into downstream industries from electronics to electric‑vehicle batteries. Companies may accelerate investments in recycling, explore alternative leaching chemistries, or renegotiate supply contracts to mitigate risk. Analysts expect the sulfur squeeze to persist until geopolitical tensions ease and new supply routes emerge, making strategic sourcing a critical focus for metal producers and investors alike.