A sharp surge in global sulphur prices is creating significant disruption across Bangladesh’s industrial sector, triggering a sulphuric acid shortage that is beginning to impact battery manufacturers, chemical producers, fertilizer companies, and other downstream industries.
The crisis stems from mounting geopolitical tensions in the Middle East and ongoing instability in global shipping routes, which have severely disrupted sulphur supplies. Sulphur, a critical feedstock for sulphuric acid production, is largely sourced as a by-product of oil refining operations concentrated in the Gulf region.
Industry sources indicate international sulphur prices have surged from approximately US$550 per tonne to nearly US$1,800 per tonne within a matter of weeks. The increase has rapidly filtered through the supply chain, resulting in unprecedented cost escalation for sulphuric acid producers and industrial consumers.
The impact is already visible in Bangladesh’s battery sector, where sulphuric acid is a key raw material used in lead-acid batteries for automobiles, backup power systems, industrial equipment, solar energy installations, and electric three-wheelers.
Several manufacturers report severe difficulties in sourcing sulphuric acid, while downstream producers of electrolyte solutions have either reduced output or temporarily suspended operations due to soaring input costs.
Industry participants say the challenge extends well beyond batteries.
Sulphuric acid is one of the most widely used industrial chemicals globally and serves as a critical input for fertilizer manufacturing, textile processing, metal treatment, pharmaceuticals, specialty chemicals, pigments, and numerous industrial processes. Prolonged supply disruptions could therefore create broader consequences across Bangladesh’s manufacturing landscape.
The situation has been further complicated by procurement difficulties faced by local producers. Industry representatives note that Bangladesh’s sulphuric acid sector remains heavily dependent on imported sulphur, making it particularly vulnerable to international market volatility and shipping disruptions.
Particular concern surrounds the Strait of Hormuz, one of the world’s most important energy and commodity trade corridors. A substantial portion of global sulphur trade moves through the region, and uncertainty over shipping security has significantly increased logistics costs, insurance premiums, and delivery lead times.
Bangladesh currently maintains domestic sulphuric acid production capacity that exceeds estimated national demand. However, producers are struggling to secure sufficient sulphur feedstock at commercially viable prices, creating supply bottlenecks despite available manufacturing infrastructure.
The crisis has also sparked concerns among industrial users regarding supply availability and market stability. Trade bodies have called for urgent intervention to prevent further disruption to manufacturing activities and protect downstream industries from escalating costs.
Recognizing the growing risk, Bangladesh’s Ministry of Commerce has approved sulphuric acid imports in an effort to stabilize the market and improve availability for industrial consumers. Industry stakeholders view the move as a positive step toward restoring supply equilibrium, although much will depend on developments in international sulphur markets.
For the broader chemicals sector, the episode highlights the increasing vulnerability of industrial supply chains to geopolitical events. What began as a disruption in global sulphur availability has quickly evolved into a challenge affecting multiple industries, from batteries and fertilizers to specialty chemicals and industrial manufacturing.
Market participants warn that if global supply conditions remain tight, manufacturers across South Asia may continue to face elevated raw material costs throughout the year, adding further pressure to an already challenging operating environment.