Analysis: Shortages of sulfur will increase the costs of copper mine operators.

J. Safra Sarasin's Asad Farid stated that the sulfur shortage caused by the conflicts in the Middle East will increase the costs for copper miners. Sulfur is a byproduct of oil and gas refining. It is used to produce sulfuric acid, which is then used in the leaching process to extract copper from copper oxide ore. Farid said that a significant portion of copper miners' operating costs are driven by the cost of sulfuric acid. "If this situation continues, copper prices will face upward pressure." He added that companies including Glencore and BHP have a greater exposure to rising sulfuric acid prices, but other miners will be less affected because they mine copper sulfide ore.