The Global Sulphuric Acid Market: The World’s Most Produced Chemical

260 Million Tonnes of the Chemical No One Talks About

Sulphuric acid has been the world’s most produced chemical by volume for over a century. Global output exceeds 260 million tonnes per year, with a market value of approximately $40 billion. It is the industrial economy’s invisible workhorse used in fertiliser manufacturing, metal processing, petroleum refining, chemical synthesis, water treatment, and dozens of other applications. The American Chemical Society once noted that sulphuric acid consumption is such a reliable indicator of industrial activity that it can be used as a proxy for economic development. And yet, outside the chemical industry, almost nobody has heard of it.

How Sulphuric Acid Is Produced

Sulphuric acid (H₂SO₄) is produced overwhelmingly via the contact process: elemental sulphur is burned to produce sulphur dioxide (SO₂), which is catalytically oxidised to sulphur trioxide (SO₃) over a vanadium pentoxide catalyst, and then absorbed in dilute sulphuric acid to produce concentrated acid.

Feedstock: Elemental Sulphur

The critical upstream input is elemental sulphur. The majority of the world’s sulphur supply, roughly 80%, is recovered as an involuntary by-product of oil and gas refining and natural gas processing via the Claus process.

Crude oil and natural gas contain hydrogen sulphide (H₂S), which must be removed to meet specifications and environmental standards. The recovered sulphur is stockpiled and sold, making supply a function of refining activity rather than direct mining.

Secondary Source: Smelter Acid

A secondary source is smelter acid, produced from SO₂ gases released during the smelting of sulphide ores such as copper, zinc, nickel, and lead. This accounts for roughly 20% of global production.

Minor Source: Mined Sulphur

Some sulphur is still mined from native deposits, but this is now a negligible share of global supply.

The Production and Trade Map

China is the world’s largest sulphuric acid producer and consumer, driven by its phosphate fertiliser industry and metals smelting sector. The United States, Russia, India, and Morocco are also major producers.

Gulf Dominance in Sulphur Exports

Saudi Arabia, the UAE, and Qatar are major sulphur exporters. Nearly half of global seaborne sulphur trade typically passes through the Strait of Hormuz, making the Gulf the global price-setting region.

Market Disruption Dynamics

The closure of Hormuz has created immediate shortages. China has responded by restricting exports, disrupting downstream industries such as copper smelting in Chile.

Pricing Benchmarks

Sulphur and sulphuric acid are priced using benchmarks from Argus, ICIS, and CRU, including:

What Sulphuric Acid Is Used For

Phosphate Fertiliser Production

This is the dominant use, accounting for around 60% of global consumption. Sulphuric acid is used to process phosphate rock into phosphoric acid, which is essential for fertilisers like DAP and MAP.

Without sulphuric acid, phosphate rock is effectively unusable in agriculture.

Metal Processing

Used in copper leaching, zinc refining, nickel processing, uranium extraction, and steel pickling. Chile and Peru are major demand centres.

Petroleum Refining

Used as a catalyst in alkylation units and in various refining and treatment processes.

Chemical Synthesis

A core reagent in producing titanium dioxide, hydrofluoric acid, detergents, dyes, pigments, and pharmaceuticals.

Other Uses

Includes water treatment, lead-acid batteries, paper processing, and laboratory applications.

The Hormuz Effect

The 2026 Hormuz crisis has impacted the sulphuric acid market via two mechanisms:

Supply Shock

Disruption of Gulf sulphur exports has removed a major portion of global supply.

Refining Curtailment Impact

Reduced refinery throughput has cut sulphur production at source, tightening supply further.

Downstream Consequences

  • Fertiliser production declines
  • Copper output is constrained
  • Input costs rise globally

This exposes the fragility of interconnected industrial supply chains.