Last September, a geopolitical event flew under many radars — Ukrainian drone attacks on Russia’s Astrakhan gas processing plant.

The ripple effect?

📈 Sulfuric acid prices nearly doubled within months.

📉 Copper treatment and refining charges (TC/RCs) fell below zero, reaching a record low of -$49.

Today, something remarkable is happening in China:

Copper smelters are generating more profits from sulfuric acid — a by-product — than from their core business.

One key figure:

Sulfuric acid now accounts for **over 64% of by-product revenues**, compared to a historical average of 27%.

In some cases, it represents nearly a quarter of gross profit — despite contributing only around 1% of total revenue.

💡 What can we learn from this?

1️⃣ Supply chains are increasingly interconnected and highly sensitive to geopolitical shocks.

2️⃣ Margins can shift rapidly along the value chain.

3️⃣ Relying on volatile, non-core markets for profitability creates significant strategic risk.

Analysts are already forecasting price corrections in the coming months.

If sulfuric acid prices decline while TC/RCs remain negative, capacity cuts may follow.

👉 In such a dynamic environment, competitive advantage depends on:

* Strategic foresight

* Risk management

* The ability to detect weak market signals early

The companies that anticipate these shifts don’t just absorb volatility. They position themselves to lead through it.