Sulfur futures have soared to all-time highs above CNY 5,180 per tonne as conflict in the Middle East disrupts a crucial link in the global fertilizer supply chain. Nearly half of the world’s sulfur supply comes from countries in the region, and the effective closure of the Strait of Hormuz has sharply restricted shipments, causing shortages just as demand accelerates ahead of the spring planting season.
Sulfur is a vital feedstock for sulfuric acid, which is essential in producing phosphate fertilizers used on crops such as soybeans and corn. Even before the recent escalation, the market was already tight, driven by robust demand from the mining sector—where sulfuric acid is used for metal extraction—and by ongoing export restrictions from major suppliers including China and Russia.
With phosphate fertilizer producers now competing directly with industrial users for scarce sulfur, some fertilizer output has already been cut, and inventories are increasingly at risk of being drawn down. This heightens the probability of further supply disruptions and price volatility across related markets.
