CHINA’S BAN ON SULFURIC ACID EXPORTS COULD IGNITE THE NEXT SILVER SUPPLY SQUEEZE!

China’s upcoming ban on sulfuric acid exports starting May 1 could tighten global silver supply!

China, the world’s largest exporter of sulfuric acid (much of it a byproduct of its own copper/zinc smelting), is halting shipments amid soaring prices and Middle East supply disruptions from the Iran conflict (Strait of Hormuz issues cutting sulfur feedstock).

Why does this matter for silver?

Sulfuric acid is essential for heap leaching in copper mining – especially oxide ores.

Major producers like Chile (world’s #1 copper producer, importing over 1M tonnes of Chinese acid annually), DRC, and Zambia rely heavily on it.

Roughly 20% of Chile’s copper output depends on acid-based processing.

Less available/affordable acid → higher costs and potential production cuts at copper mines worldwide.

And here’s the silver link: ~70% of global newly mined silver comes as a byproduct of copper (and to a lesser extent, lead/zinc) mining.

When copper output slows, silver supply shrinks with it.

With silver already facing structural deficits for the past 6 consecutive years and strong industrial/green energy demand, this supply-side squeeze could be the latest silver squeeze catalyst- ironically, just as the global silver market is beginning to return to normal after 9 months of severe physical supply constraints triggered by China’s silver export ban.

Silver exploded 4x from the low $30’s to over $120/oz on a PHYSICAL SQUEEZE triggered by China – & JP Morgan’s refusal on Thanksgiving night to allow the Chinese to withdraw 13 million oz of silver from JPM COMEX vaults.

1-month silver lease rates have finally returned to normal (negative) only this past week.

Could another physical silver squeeze be triggered by China again- this time on the other end of the market?

Miners can’t easily switch processes or source acid overnight – especially with global sulfur markets also strained.

Watch copper production data and acid prices in the coming months.

This quiet policy move by the CCP in response to Trump’s actions in the Strait of Hormuz to throttle Chinese oil supplies might ripple harder than expected into the precious metals space.

“I RECOMMEND YOU PANIC – EVERYTHING IS BURNING!” Durrett warns our lifestyle is about to get RUG PULLED, & ONLY GOLD, SILVER, & the MINING SHARES WILL PROTECT YOU FROM WHAT’S COMING!