Materials shock: sulfuric acid and aluminium

China is preparing to halt sulfuric acid exports from May, tightening supply of a basic industrial chemical already squeezed by the war-linked disruption of sulfur flows through the Strait of Hormuz. (bloomberg.com) People familiar with the move told Bloomberg that Chinese producers recently received notices and at least one large buyer was told by its supplier that exports would stop next month. Sulfuric acid is used in fertilizer and metal processing, and the United States Geological Survey calls it one of industry’s most important raw materials through its sulfur derivative chain. (bloomberg.com) (usgs.gov) The market was already under strain because sulfur from the Middle East has been harder to move since the conflict around Iran and the Strait of Hormuz escalated. Bloomberg reported that the region produces about one-third of the world’s sulfur, a feedstock used to make sulfuric acid. (bloomberg.com) Sulfuric acid is the workhorse chemical for turning phosphate rock into fertilizer and for extracting some metals from ore. The United States Environmental Protection Agency says its largest single use is phosphoric acid for fertilizer, with other uses in metal extraction, oil refining, steel cleaning, batteries, and pulp. (epa.gov) Aluminium has been moving on the same geopolitical shock. Reuters reported on March 9 that benchmark London Metal Exchange aluminium touched $3,544 a metric ton, the highest since March 2022, as traders priced in longer Middle East shipping disruptions. (kitco.com) The squeeze deepened after Iranian strikes hit Gulf smelters in late March. AGBI reported that London Metal Exchange three-month aluminium rose to $3,492 a tonne as Emirates Global Aluminium and Aluminium Bahrain assessed damage, while Reuters said most Gulf producers, which account for about 9 percent of global supply, were already struggling to ship through normal routes. (agbi.com) (straitstimes.com) Chipmakers are watching a different part of the same map. Helium is used to control wafer temperatures and prevent unwanted reactions in semiconductor fabrication, and the Semiconductor Industry Association told the United States Geological Survey that it is a critical input across manufacturing tools and facilities. (semiconductors.org) Bromine is another upstream risk because it is used to make hydrogen bromide, an etching gas for carving circuit patterns into silicon. South Korea’s The Elec reported on April 13 that global liquid bromine production is concentrated in Israel and Jordan, while South Korea imported 97.5 percent of its bromine from Israel. (thelec.net) Helium supply is concentrated too. Korea JoongAng Daily reported on April 13 that South Korea got 64.7 percent of its helium imports from Qatar last year, and TrendForce said on March 23 that Qatar supplies more than one-third of the world’s helium and that the war has put producers including Taiwan Semiconductor Manufacturing Company, Samsung Electronics, and SK hynix under closer watch. (koreajoongangdaily.joins.com) (trendforce.com) That is why the immediate signal for buyers is not always an outright shutdown. In past raw-material squeezes, the first signs have often been revised quotes, longer lead times, and requests to stagger deliveries, and this time the pressure is building at the chemical and gas layer before it reaches finished products. (semiconductors.org) (thelec.net) If China follows through in May, the story is no longer just about one export curb or one metal rally. It is about how sulfur, aluminium, bromine, and helium moved from background inputs to front-line constraints in the same supply chain shock. (bloomberg.com) (kitco.com)