Sulfur, a core input for phosphate fertiliser production, has risen above $1,000 per tonne after supply disruptions linked to the Strait of Hormuz and reduced Russian exports removed a large share of internationally traded volumes. Market reports suggest these two sources together account for roughly two-thirds of sulfur normally traded across borders.
The shortage feeds directly into higher production costs for diammonium phosphate (DAP) and related phosphate fertilisers, since sulfur is converted into sulfuric acid, a key reagent in phosphate rock processing. Producers facing tighter and costlier sulfur supply are likely to pass these costs downstream to fertiliser buyers.
For phosphate fertiliser producers and buyers, this tightens margins and raises the risk of further price increases in DAP and MAP markets over the coming months. Trading houses and importers reliant on Middle Eastern or Russian sulfur supply chains should watch for continued volatility and consider diversifying sourcing where possible.
Related on gidex.com: urea supply · DAP supply · the fertiliser desk
Original note by GIDEX Group based on reporting by Fertilizer Daily. Written up by the GIDEX market desk — see how these notes are made. Not investment advice.
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