Metals Movers (Argus series within Argus Media feed)
Metal Movers: Strait of Hormuz - How Sulphur Is Impacting the Copperbelt
Why It Matters
Sulfur is a critical input for acid leaching of copper and cobalt, so supply shocks can quickly translate into higher production costs and potential output reductions in the world’s largest African mining region. With copper and cobalt underpinning electric vehicle batteries and renewable energy technologies, any bottleneck threatens supply chains and price stability at a time when demand for these metals is accelerating.
Key Takeaways
- •Strait of Hormuz closure halts 90% sulfur flow to Africa.
- •Sulfur prices in Tanzania jumped from $600 to $1,200/ton.
- •DRC copper leaching could lose up to 3 Mt annually.
- •Producers rely on weeks of inventory, risk rising costs soon.
- •Cobalt faces sulfur shortage plus export quota delays.
Pulse Analysis
The ongoing Middle East conflict has choked the Strait of Hormuz, cutting off roughly 90% of the sulfur that fuels Africa’s copper belt. With half of global sulfur exports traditionally routed through the Gulf, the blockage forced vessels to linger or reroute, driving spot prices in Dar es Salaam from about $600 to $1,200 per tonne. This price shock reverberates through the sulfuric acid market, where higher freight and diesel costs further tighten supply for leaching operations that depend on cheap, reliable inputs.
In the Democratic Republic of Congo, where acid leaching underpins roughly three million tonnes of copper output, the sulfur shortage poses a direct production risk. While most miners hold a few weeks of inventory, prolonged disruption could erode those buffers, forcing higher procurement costs and, if sustained, potential cutbacks in leach circuits. Smelters that generate sulfuric acid as a by‑product remain insulated, but the broader African copper sector faces a cost‑inflation narrative rather than an immediate supply shock. Market participants are watching freight rates, permit systems in Zambia, and the speed of cargo recovery to gauge when the situation might shift from a pricing issue to a real output constraint.
Cobalt shares a similar vulnerability, given its reliance on the same acid‑intensive circuits and its linkage to Indonesian nickel operations that also import Gulf sulfur. Yet cobalt’s bottleneck is compounded by export quota delays and assay disputes, slowing shipments to China. The combined pressure on sulfur, diesel, and logistics could ripple through the battery supply chain, affecting lithium‑iron‑phosphate production that also depends on sulfuric acid. Buyers should remain vigilant: short‑term price spikes are likely, but if Gulf flows stay disrupted beyond a few weeks, tighter cathode availability and higher downstream costs could reshape market dynamics for both copper and cobalt.
Episode Description
With Southern Africa sourcing over 90pc of its sulphur from the region, the Copperbelt’s copper and cobalt producers are facing halted shipments, refinery shutdowns, and rapidly rising costs.
In this episode, noble alloys reporter Roxana Lazar is joined by sulphur and sulphuric acid reporter Fenella Rhodes; senior copper reporter Raghav Jain; and battery materials reporter Chris Welch.
The panel explore how these supply-chain shocks are shaping production in the DRC and Zambia, and how far the consequences could spread across global metals markets.
Topics covered:
The collapse in Middle East sulphur deliveries and its impact on leaching
Tightened global sulphur supply including the stalled gulf cargoes
The impact on cobalt exports, slowed by quota delays and shipping disruption
Whether the conflict is a temporary bottleneck or a structural vulnerability for the Copperbelt
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