Hormuz Sulphur Shortage Squeezes Copper Supply Critical for AI Data Centers

The closure of the Strait of Hormuz stranded about 600,000 metric tons of sulphur, and China banned sulphuric acid exports in May 2026. Acid prices jumped over 150%, hitting copper production that AI data centers and chipmakers depend on.

• COMEX copper trades near $6.72 per pound, close to its all-time high
• About 20% of global copper supply relies on SX-EW, which uses sulphuric acid
• Sulphuric acid prices rose more than 150% in key importing regions by July 2026
• A 300 MW data center locks in 3,000–8,000 metric tons of copper before servers go online