🌟The sulfuric acid shortage caused by the Iran war is now threatening commodity production.
Sulfuric acid is essential for processing ores into metals. The market was already tight, with prices up ~500% even before the conflict.
The Middle East accounts for ~24% of global sulfur production, and producers typically hold only a few weeks to 2 months of supply.
Without sulfuric acid, production drops.
- ~20% of global copper
~50% of uranium
- ~30% of nickel production
Depend directly on it.
But mining isn't the only sector competing for supply.
Around 60% of global sulfuric acid is used to produce phosphate fertilizers. Without it, fertilizer production falls, putting food production at risk.
To protect domestic industries, countries including Russia, Kazakhstan and Turkey have imposed sulfur export restrictions, squeezing an already tight market.
With critical energy infrastructure being destroyed, these shortages won’t disappear even if the Strait is reopened... they will persist
https://x.com/ekwufinance/status/2083611492167852410?mx=2
🌟Ellinne
Sulfuric acid is essential for processing ores into metals. The market was already tight, with prices up ~500% even before the conflict.
The Middle East accounts for ~24% of global sulfur production, and producers typically hold only a few weeks to 2 months of supply.
Without sulfuric acid, production drops.
- ~20% of global copper
~50% of uranium
- ~30% of nickel production
Depend directly on it.
But mining isn't the only sector competing for supply.
Around 60% of global sulfuric acid is used to produce phosphate fertilizers. Without it, fertilizer production falls, putting food production at risk.
To protect domestic industries, countries including Russia, Kazakhstan and Turkey have imposed sulfur export restrictions, squeezing an already tight market.
With critical energy infrastructure being destroyed, these shortages won’t disappear even if the Strait is reopened... they will persist
https://x.com/ekwufinance/status/2083611492167852410?mx=2
🌟Ellinne
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