Falling Sulphuric Acid Prices Squeeze Chinese Copper Smelter Margins

Key Facts

Sulphuric acid prices in China fell 30% in the third quarter of 2026, eroding a key profit source for copper smelters. Reuters reported that prices for the critical byproduct dropped from 2,107 yuan to approximately 1,484 yuan per metric ton, intensifying financial pressure on firms that relied on these revenues to offset negative copper concentrate processing fees.

Mining.com reported that the price drop could lead to operating losses and extended maintenance outages for Chinese smelters. This margin squeeze occurs amid mixed economic signals in China, where official Manufacturing PMI data from October 31, 2026, recorded a reading of 49.3, remaining below the 50-point growth threshold.

The market is awaiting the release of China's Producer Price Index (PPI) on November 9, 2026, which is expected to provide further insights into industrial inflation trends and production costs.