Sulphuric acid prices, which are crucial for processing metals like copper and nickel, are expected to continue their downward trend into 2027. According to consultancy CRU, sulphuric acid delivered to Chile, the world's top copper producer, is forecast to drop to $215 per metric ton by the fourth quarter of 2027. This decline follows a peak of $451 earlier this year.
Analyst Chris Lawson noted during LME Week in London that this price drop will bring some relief to those involved in spot and contract sulphuric acid markets. However, he emphasized that prices will still remain above historical averages.
The decrease in sulphur and sulphuric acid prices is also expected to help copper treatment charges recover next year. Lawson forecasted that spot copper treatment charges could improve to minus $75 per ton in the fourth quarter of 2027, up from nearly minus $300 currently.
CRU analyst Tom Rutland highlighted a significant shift in the copper concentrate market, moving from long-term contracts to index pricing. In 2024, 52% of buying was done on 12-month fixed contracts, but this has dropped to 14% this year, while indexing has grown from 12% to 51%. Additionally, China resumed sulphuric acid exports to Chile in September after a three-month halt, while supply disruptions from Gulf producers due to the Iran war have also impacted the market.