Strait of Hormuz Is Chokepoint for Sulphuric Acid and Critical Metal Processing

Key Takeaways

• Middle East supplies 24% of world sulphur
• Indonesia’s nickel output depends on 75% Middle East sulphur
• Sulphur prices jumped 10‑15% post‑conflict
• HPAL plants hold only 1‑2 weeks of sulphur stock
• Africa’s copper and cobalt leaching relies on Middle East shipments

Summary

The Strait of Hormuz channels about 50% of the world’s sulphur, a key feedstock for sulphuric acid used in nickel, copper and cobalt processing. Indonesia, which produces over half of global nickel, imports roughly 75% of its sulphur from the Middle East, while African copper and cobalt plants rely on similar shipments. Sulphur prices, already near $500 per tonne, rose an additional 10‑15% after the regional conflict, tightening an already constrained market. Limited inventory at HPAL plants heightens the risk of production disruptions across critical‑metal supply chains.

Pulse Analysis

The Strait of Hormuz, long recognised for its oil traffic, has quietly become a linchpin for the chemicals that power modern metal refining. Roughly a quarter of global sulphur— the raw material for sulphuric acid—passes through this narrow waterway, feeding high‑grade‑pressure acid leach (HPAL) plants that extract nickel, copper and cobalt from low‑grade ores. As the energy transition drives demand for battery‑grade metals, the need for reliable acid supply intensifies, turning a regional maritime bottleneck into a systemic risk for the entire critical‑metal value chain.

The market’s tightness predates the recent Middle‑East conflict, but the disruption amplified price pressure, pushing sulphur costs from $500 per tonne to an additional 10‑15 % premium. Indonesian HPAL facilities, which dominate more than half of world nickel output, typically operate with just one to two weeks of sulphur on hand, leaving them exposed to any prolonged blockage. In Africa, copper and cobalt leaching plants source up to 90 % of their sulphur from the same corridor, meaning a single logistical snag can cascade into production slow‑downs across continents.

Stakeholders are therefore racing to de‑risk the supply chain. Companies with on‑site acid generation—capturing sulphur from smelter off‑gases—are better insulated, while others explore alternative feedstocks such as recovered sulphur from refinery waste or synthetic routes. Governments and industry groups are also urging the development of strategic sulphur inventories and diversified shipping lanes to reduce reliance on Hormuz. In the longer term, expanding regional sulphur production in North Africa or South America could blunt the chokepoint effect, safeguarding both metal output and global food‑security linked to fertiliser manufacturing.