In July 2026, sulphur, the key hazardous raw material for phosphate fertilizers, reached an all-time price record. ADNOC set the July sulphur official selling price for India at $1,000/ton FOB, increasing by $140 month-on-month and surpassing the previous historical peak recorded in 2008.
The sharp increase in sulphur prices reflects growing supply pressure across major exporting regions. As a critical raw material for phosphoric acid and phosphate fertilizer production, sulphur price fluctuations directly influence the manufacturing costs of products such as DAP and MAP fertilizers.
Russia extended its industrial sulphur export ban until the end of 2026, removing a significant volume of supply from international markets. The restriction has reduced availability from one of the world's major sulphur-producing regions and increased competition among global buyers.
Kazakhstan halted all external sulphur shipments, cutting off another important low-cost land supply channel. The combined impact of reduced Russian and Kazakh exports has accelerated global supply shortages and strengthened sulphur price momentum.
Transit efficiency at the Strait of Hormuz remains below half of pre-conflict levels. Fertilizer and sulphur bulk carriers receive lower priority compared with oil and LNG tankers, resulting in extended vessel waiting times and significant logistics delays.
Due to reduced shipping efficiency, sulphur cargoes from the Middle East are facing longer transportation cycles, with typical delivery times extending to 20–30 days. Rising freight costs and delayed arrivals are adding further pressure to global fertilizer supply chains.
Domestic port sulphur inventories have declined to their lowest level in a decade. The shortage has significantly increased raw material costs for phosphate fertilizer manufacturers, causing severe production pressure and reducing operating rates.
Facing higher sulphur costs and shrinking margins, some phosphate fertilizer producers have reduced production volumes in an effort to balance supply and stabilize market prices.
The global autumn fertilizer purchasing season begins in mid-to-late July 2026. Major buyers including India and Morocco are increasing procurement activities for urea and DAP, adding further demand pressure to already limited raw material supplies.
Analysts from Goldman Sachs indicate that global fertilizer raw material supply risks are likely to remain elevated throughout Q3. Sulphur, liquid ammonia, and other fertilizer-related chemicals are expected to maintain high price levels throughout the year due to continued supply constraints and strong demand.
