Sulfur Hits New Peak

Sulfur futures surged to a record high of CNY 7,050 per tonne as the Middle East conflict disrupted a key link in the global fertilizer supply chain. Almost half of global sulfur production comes from the region, and the near closure of the Strait of Hormuz has sharply reduced shipments, tightening availability. Sulfur is a critical input for sulfuric acid, which is widely used in phosphate fertilizers for crops such as corn and soybeans. Supply conditions were already strained before the conflict due to strong industrial demand, particularly from the mining sector, where sulfuric acid is used in metal extraction, as well as export restrictions from major producers including China and Russia. With fertilizer producers now competing with industrial users for limited supply, some output has already been cut and inventories are under pressure, increasing the risk of further disruptions across agricultural and industrial markets.

Sulfur futures surged to record highs above CNY 6,700 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.