Global phosphate fertilizer production faces ongoing constraints as sulfur spot prices hover at $850 per ton, down from a record high of $1,200 per ton, according to Itafos CEO David Delaney speaking to Brownfield. While prices have retreated from their peaks, operating rates across the industry remain restricted between 50% and 60% due to persistent supply bottlenecks in the Middle East and export suspensions from China.
Strait of Hormuz Closures Constrain Sulfur Shipments
The core disruption centers on the geopolitical conflict in the Middle East, which led to the closure of the Strait of Hormuz since the end of February 2026. The closure left an estimated 80 to 100 million tons of loaded sulfur stranded inside the Persian Gulf, forcing major producers in the region to cut output as storage capacity filled up. The Ras Laffan natural gas plant in Qatar suffered severe damage that will require years to repair, while shipments from the United Arab Emirates and Kuwait crawl forward at extremely slow speeds. David Delaney told Brownfield that sulfur cargo traffic through the Strait of Hormuz runs at roughly 25% of normal volumes, with Russia and Kazakhstan also withholding exports.
Middle East Prices Climb as Production Drops
International sulfur prices reflect the severity of the supply squeeze, though figures vary by market. Middle East ex-factory prices climbed from $660–$680 per ton in mid-April to $735–$745 per ton by the end of the month, while arrival prices reached $900–$1,090 per ton in Brazil and $990–$1,000 per ton in South Africa. In China, granulated sulfur arrival prices range from $850 to $900 per ton. These elevated costs forced fertilizer plants in North Africa to operate at 30% to 50% of capacity. Meanwhile, Indonesia’s Huayou Cobalt halved its MHP production starting May 1, contributing to an estimated 38% reduction across the battery materials industry.
China Suspends Fertilizer Exports Amid Shortage
China responded to the sulfur shortage by suspending exports of diammonium phosphate, monocalcium phosphate, and binary fertilizers through the end of the year to protect domestic agricultural supplies. With spring fertilizer season concluded and import costs high, Chinese phosphate producers dropped operating rates to 50%–55%. David Delaney confirmed to Brownfield that China, a big exporter, exported zero MAP or DAP this year. Chinese buyers have largely resisted high-priced imports, though two ships carrying Iranian sulfur recently sailed through the Strait of Hormuz toward China to provide lower-cost options. Simultaneously, the Chinese government banned industrial sulfuric acid exports and enforced retail price caps through the National Development and Reform Commission to limit costs for farmers.
Crop Production Outlook for 2027
High input costs and restricted raw material availability continue to reshape agricultural application rates. David Delaney told Brownfield that farmers worldwide reduced phosphate fertilizer applications throughout the year, and he projects that elevated prices will drive further usage cuts into 2027. Those reduced application rates threaten to constrain global crop production in upcoming harvests.
Frequently Asked Questions About Sulfur and Fertilizer Supplies
- How much have sulfur prices dropped from their peak?
- Sulfur prices fell to $850 per ton from a record high of $1,200 per ton, according to Itafos CEO David Delaney.
- Why are Middle Eastern sulfur shipments delayed?
- The long-term closure of the Strait of Hormuz resulting from Middle East conflicts trapped an estimated 80 to 100 million tons of sulfur inside the Persian Gulf.
- What action did China take regarding fertilizer markets?
- China suspended exports of diammonium phosphate and monocalcium phosphate through the end of the year and restricted industrial sulfuric acid shipments to preserve domestic supplies.
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