Sulfur Hits Record Highs

Sulfur futures surged to record highs above CNY 5,180 per tonne, as the Middle East conflict disrupted a critical part of the fertilizer supply chain.

Nearly half of the global sulfur supply originates from countries in the region, and the effective closure of the Strait of Hormuz has severely constrained flows, creating shortages just as demand rises ahead of the spring planting season.

Sulfur is a key input for producing sulfuric acid, which is essential in phosphate fertilizers used for crops like soybeans and corn.

Even before the conflict, supplies were already tight due to strong demand from the mining industry, which uses sulfuric acid for metal extraction, and ongoing export restrictions from key producers such as China and Russia.

With phosphate producers now competing with industrial buyers for limited sulfur supply, some production has already been curtailed, and inventories are at risk of being depleted, raising the likelihood of further disruptions across markets.