War in the Persian Gulf and new Chinese export restrictions have triggered a global shortage of sulfuric acid, sending prices soaring for the world's most consumed chemical. The supply crunch threatens industries ranging from agriculture to semiconductor manufacturing, where the corrosive liquid serves as a critical input for fertilizers, metal processing, and electronics production.

Sulfuric acid ranks as the most widely used chemical globally, produced through metal smelting or sulfur combustion from oil and gas operations. Beyond its household use as drain opener, the acid underpins phosphate fertilizer production, copper extraction, steel pickling, and municipal water treatment systems. Battery manufacturers and semiconductor makers depend on it, as do producers of citric acid and silica for consumer goods.

Transporting sulfuric acid presents logistical challenges due to its highly corrosive nature, requiring specialized equipment and storage facilities. Kunal Sinha, former Glencore sulfuric-acid manager, notes that most users maintain only weeks of supply in their pipelines and storage systems. Any supply-chain disruption—from rail strikes to shipping lane closures—creates immediate shortages given minimal buffer inventory.

The convergence of geopolitical conflict and export controls has exposed vulnerabilities in a chemical supply chain that feeds fundamental industrial processes worldwide. With limited storage capacity and concentrated production sources, even modest disruptions ripple through multiple sectors, forcing manufacturers to scramble for alternative suppliers while paying premium prices.