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Sulphur 419 Jul-Aug 2025

16 July 2025

Market Outlook

Market Outlook

SULPHUR

• Global sulphur prices are expected to experience decreases over the next few weeks. Buyers in Asia report that they are covered for contracted supply throughout July, and domestic prices in China are likely to decrease further, putting downward pressure on sulphur prices.

• Indian spot buying may only resume closer to August, targeting deliveries into September, when operational needs begin to align with tighter inventory cycles. Further corrections are anticipated as traders report minimal inquiries from Indian buyers, even as global sulphur prices continue to decrease.

• Early 2025 saw a short short-term mismatch of supply and demand which triggered the price surge. But this is expected to be short short-lived as inventory drawdown and demand seasonality are expected to cause the price to move lower in 2025 H2.

• However, over the past year and a half, demand growth in phosphates and market tightness has been masked by global stock drawdowns, but in the medium term the market deficit is expected to see price increases over the next year.

SULPHURIC ACID

• The global sulphuric acid market is expected to experience limited trading activity in the immediate term as availability tightens further. Still, global prices are likely to experience periods of stabilisation and slight increases in the coming weeks as demand sporadically enters the market to cover urgent requirements until availability improves further into Q3.

• Availability in Japan and South Korea remains tight, with producers currently quoting the earliest possible date to purchase material as September, according to industry sources.

• Key DAP/MAP spot price benchmarks have moved further upwards as a bullish tone continues to pervade the market due to tight availability. The lack of available spot cargoes means it remains very much a seller’s market despite exceptionally poor affordability.

• Growth in smelter and sulphur burner-based acid supply in Asia is expected to cut import requirements in the second half of 2025. Weaker traded demand will limit export opportunities from China.

• New demand in Chile and Peru will maintain the long-distance trade requirement in the Pacific, counteracting lower import demand in SE Asia.

• India’s Fertilisers and Chemicals Travancore Limited (FACT) issued a fresh tender for sulphuric acid import in early July, inviting bids for a cargo of 10,000-12,000 tonnes for delivery 25-30 July.

• Contracts for the supply of sulphuric acid in Europe for the third quarter of 2025 have registered increases in the range of €2-5/t, according to multiple market sources. This puts the 2025 Q3 contract prices at €160-188/t c.fr. up from the Q2 price which was €158-183/t c.fr. The price for Q1 was set at €155-180/t c.fr.

Latest in Agricultural

Feedstock allocation for fourth phosphate plant

The Saudi Arabian Mining Company (Ma’aden) says that the Ministry of Energy has approved the allocation of feedstock for its fourth phosphate project. This project aims to produce approximately 1.1 million t/a of ammonia and increase the production of phosphate and specialty fertilizers by about 2.5 million t/a, raising the company’s total production capacity to nearly 12 million t/a. This will further solidify Ma’aden’s position as one of the world’s largest producers of phosphate fertilizers, according to a company statement. Ma’aden will now commence engineering studies and obtain the necessary approvals.

Phosphate investment deal

Syria’s Geological and Mineral Resources Authority has signed an agreement with Teryaq, a subsidiary of Serbia’s Exlixir Group, aimed at exporting 1.5 million t/a of phosphate by the end of 2026. The agreement marks a significant step in Syria’s efforts to expand international partnerships and optimise its mineral resources for economic gain. Elixir Group owns the largest phosphoric acid plant in Europe and operates three fertilizer plants in Serbia.

Chatham Rock Phosphate sells Australian subsidiary

Chatham Rock Phosphate has agreed to sell its wholly-owned Australian subsidiary Avenir Makatea Pty Ltd to Austure Industries Pty Ltd for A$1.4 million, including A$900,000 in cash over a 24-month period, and a 20% shareholding in Austure Phosphate AU Pty Ltd, a newly-formed subsidiary of Austure, to establish a mono- and dicalcium phosphate manufacturing plant in Cloncurry. Colin Randall, Chatham Executive Director has been appointed a Director of Austure Phosphate AU Pty Ltd.

Safi floods likely to impact phosphate supply from OCP

Flash floods in the Moroccan port city of Safi killed at least 37 people in December and injured many others, with knock on effects also likely to impact exports from phosphate producer OCP. Jorf Lasfar is the phosphate giant's main export hub for phosphate fertilizers and phosphoric acid, while Safi exports smaller volumes of phosphoric acid, TSP and animal feed products. Phosphate rock exports are largely concentrated at the port of Casablanca further north. OCP produces around 420,000 t/a triple superphosphate and 1.63 t/a phosphoric acid at Safi, as well as around 62,000 t/a dicalcium phosphate and 70,000 t/a monocalcium phosphate.