Sulfur is a critical input for producing phosphoric acid and downstream phosphate fertilisers such as DAP and MAP. Reports indicate more than half of globally traded sulfur passes through the Strait of Hormuz, making the market highly exposed to any disruption of shipping in that chokepoint.
Russia, one of the top three sulfur exporters, has separately imposed an export ban, removing another major supply source from the market at the same time. With two of the three largest supply origins constrained, phosphate producers reliant on imported sulfur face tightening feedstock availability.
For phosphate fertiliser producers and traders, this raises the risk of higher sulfur and sulfuric acid costs, potential production curtailments, and knock-on effects for phosphate fertiliser prices and availability, particularly for buyers dependent on seaborne sulfur supply.
Related on gidex.com: DAP supply · the fertiliser desk · buying through the 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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