The African Sulfur Dispute Has Brought Risks To The Copper Trade Flow Due To The Supply Problems Of Chilean Sulfuric Acid.

London, April 23rd (Argus) - At the British Financial Times Commodities Summit held in Lausanne, Switzerland, participants informed Argus that shortages of sulfur and sulfuric acid in Africa, as well as Chile's reliance on imported acid for copper, are becoming key risks in the physical trade flow of the copper market. The current competition for African resources is the main pressure point. A trading group stated that sulfur goods have become one of the most easily sold products. Due to buyers' desire to ensure supply continuity, available sulfur supplies quickly attracted multiple bidders when shipped to the African continent. The African sulfur market has gradually shifted to quota supply, and major trading groups are directly responding to users' concerns about raw material acquisition. This is important because sulfuric acid is crucial for copper leaching (especially in the African Copper Belt region). For some markets, the availability of acid (rather than the copper concentrate itself) is now a decisive issue. The current pressure is masked by the high base copper price - high prices enable buyers to bear the high sulfur price for immediate delivery. Last week, the Argus spot price of South African sulfur rose from $780-800 per ton (fob) to $900-930 per ton (fob). Although the quotations have reached $1,000-1,200 per ton (fob), actual transactions have been scarce. Experts at the Lausanne meeting stated that in terms of sulfuric acid import demand, Chile is the country with the greatest global risk exposure, while Africa faces more urgent competition for immediate delivery goods. Chile only has 20%-27% of its copper produced through solvent extraction-electrolysis, and its domestic smelters can meet some acid demand, but there are limited alternative sources after China's export suspension (currently announced until the end of the year). Since China reduced exports, Chilean buyers mainly purchase acid goods from Europe, but if maritime supply further tightens, the country will face risks in the second half of this year. The spokesperson at the Lausanne meeting stated that the copper market is facing triple differentiation: metal buyers in Central Africa are fiercely competing for immediate sulfur and acid goods, the United States holds an disproportionate amount of visible copper inventory, and Chile still relies on imported acid for leaching production. These pressures collectively mean that the copper market is no longer dominated solely by traditional supply and demand balance, but is more shaped by logistics, processing chemistry, and national policies. These factors are no longer secondary issues but have become the core considerations in copper trading, pricing, and transportation.