Category: Products

CRU’s Phosphates+Potash Expoconference was held in Paris in mid-April, with the Iran crisis uppermost in everyone’s mind. Margins are under pressure, sulphur has become a strategic constraint, and the phosphates investment pipeline is thin. CRU Principal Consultant Humphrey Knight examined the fallout from the closure of the Strait of Hormuz, noting that fertilizers have been hit harder than most bulk commodities. A large share of exportable sulphur and traded urea normally originates in, or passes through, Gulf producers. The effective closure of the strait has squeezed the traded part of these markets, where international prices are set, and pushed benchmarks up sharply. The global phosphate market is structurally tight, and the combination of Chinese export policy and Middle East logistics has pushed the traded segment into a much more fragile state.

Several battery material nickel miners in Indonesia have reportedly trimmed output by at least 10% due to a shortage of and higher prices for sulphur caused by supply disruptions arising from war in the Middle East. Sulphuric acid is used to process nickel ore into mixed hydroxide precipitate (MHP), a feedstock used in electric vehicle (EV) batteries.

Topsoe has entered into an agreement with Texas-based sustainable fuels and chemicals technology company BioVeritas to unlock advantaged feedstocks for existing infrastructure. The agreement will enable fuel producers to license Topsoe’s HydroFlex® technology alongside the Bio-Veritas Process™ to produce renewable fuels from second-generation feedstocks, such as woody biomass, corn stover, wheat straw, and similar waste and residual biomass. The BioVeritas Process™ converts second-generation feedstocks to advantaged intermediates, called KEY-Tones™ that can be processed by Topsoe’s HydroFlex® technology to unlock production of renewable fuels using second-generation feedstock.

It is two months on from our previous issue, and almost none of the news has been good from sulphur and downstream markets. Only three sulphur cargoes are confirmed to have transited the Strait of Hormuz since the US and Israeli strikes on Iran began, all loaded at Ruwais, with destinations in India, Tanzania and Morocco, carrying a total of 160,000 tonnes. It is believed that a couple of Iranian vessels with a total of 75,000 tonnes may also have left covertly. But in spite of some Middle Eastern sulphur making its way to Saudi Red Sea ports or Duqm on Oman’s Indian Ocean coast, around 700,000 tonnes is still trapped on ships stranded in the Gulf, and coupled with production cuts in the region, it is estimated that over 1.2 million tonnes has so far been removed from the market.

Sour gas production is costly because hydrogen sulphide and carbon dioxide require extensive sweetening, sulphur recovery, safety, and compliance infrastructure, with sulphur sales helping offset but rarely eliminating those added costs.

InfraLeuna GmbH, the owner and operator of the Leuna chemical site, has unveiled a new state-of-the-art heating terminal as part of a new central infrastructure facility established at the Leuna chemical site to address the changing demands of the chemical industry’s supply chains.

• Prices are expected to hold at historically high levels as long as the Strait of Hormuz remains effectively closed. If the situation persists, further price increases are likely, which will only intensify the affordability crisis for global consumers.

Russia has again extended its ban on the export of industrial sulphur, with the latest decree prolonging the restriction until 30 June 2026. The announcement was made via the government’s press service on 31 March. This decision is aimed at stabilising the supply of raw materials for the domestic market to support the production of phosphate-based fertilizers. The restriction covers the export of liquid, granulated, and lump sulphur.

Sulphur continued to break historic records in most key international markets at the start of May as the scarcity of spot supply propelled prices higher, which triggered production cuts at some downstream markets, and increased costs in other industrial sectors. The effective blockade of the Strait of Hormuz, which halted the flow of Middle East supply, has forced desperate buyers to compete for the limited available spot cargoes, primarily from North America. Although fresh transactions were limited, export and delivered prices climbed higher, and market sentiment remained jittery. QatarEnergy hiked its sulphur price to $740/t f.o.b., a new record high for this contract since its inception in August 2013.

Metso has signed a major agreement with Southern Peru Copper Corporation, one of the largest copper producers in the world, for the supply of copper solvent extraction and electrowinning (SX/EW) technology to the company’s Tia Maria project in Cocachacra, Peru. The new plant will produce 120,000 tons of high-purity copper cathodes per year.