A corrosive conflict? Impact of the Middle East conflict on sulphur and metals costs

The closure of the Strait of Hormuz in late February has disrupted critical energy and commodity flows from the Middle East. Among the affected materials is sulphur - a critical but often overlooked input for metals production - with prices already at record highs before the conflict began. Sulphur is essential for leaching metals from ore, particularly for copper, nickel, and cobalt. While margins for most affected operations are wide enough to absorb higher costs, physical availability of sulphur to maintain operations is a concern - and could tighten metals supply. Major operations hold a buffer through onsite storage and in-transit inventory, but a prolonged conflict beyond the US's projected five-week timeline could force production cuts.