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Magazine: Sulphur

Sulphur ban extended

At the end of December, the Russian government extended its ban on the export of technical sulphur until at least the end of March 2026. The move prolongs the initial restrictions, which were first reported on 4 November and which were set to expire at the end of 2025. The initial ban was widely expected and followed early September drone strikes on the Astrakhan and Orenburg natural-gas plants. The official justification for the extension remains to “stabilise shipments of raw materials to the domestic market” and maintain production volumes for mineral fertilizers, according to the government’s press service Interfax.

Arianne to receive government support

Arianne Phosphate says that the government of Canada has approved contribution funding of up to C$735,000 to support the company’s ongoing work on processing phosphate rock and optimising its purified phosphoric acid (PPA) process. The funding, provided through Natural Resources Canada’s Critical Minerals Research, Development and Demonstration programme, is part of a C$80.3 million investment announced by Prime Minister Mark Carney to help build secure critical minerals supply chains in Canada. Phosphate was added to the Canadian critical mineral list in 2024. Arianne’s Lac à Paul project is the only fully permitted phosphate mine in the country. Arianne is now actively pursuing opportunities for the downstream production of PPA, a necessary ingredient for lithium-iron-phosphate batteries.

Market Outlook

• CRU’s latest global sulphur forecast is for a January price peak before a decline, with the key downside risk being a sharper correction if the supply deficit closes faster than expected. The global sulphur market’s upward momentum has been slowing, with attention shifting to geopolitical risks in Iran. Despite limited physical disruption being reported, the upside risk to prices could be substantial. Following the US bombing of an Iranian nuclear facility back in June, supply from Iran became bottlenecked, despite good production levels, as vessel owners became unwilling to call at ports like Bandar Abbas due to the increased risk.

Approval for phosphate expansion

Madhya Bharat Agro Products has announced board approval for a major capacity expansion at its Dhule manufacturing facility. The expansion represents a comprehensive enhancement of the company's fertilizer production capabilities, including 330,000 t/a of diammonium phosphate and NPK fertilizer, a 66,000 t/a phosphoric acid plant, and a 396,000 t/a sulphuric acid plant. The expansion plan is part of a strategy of vertical integration in fertilizer production. The addition of phosphoric acid and sulphuric acid production capabilities will support the primary DAP/NPK manufacturing operations, creating operational synergies and potentially reducing input costs, according to the company.

Indonesian nickel shutdown signals risk for sulphur demand

PT QMB New Energy Materials, a major Chinese-owned nickel smelter in Indonesia, is temporarily cutting production due to mounting waste management challenges, according to a 24 November report from local news source Sina, a move expected to temporarily impact regional sulphur demand. The facility, located in the Morowali Industrial Park, will reduce output for at least two weeks as its tailings ponds are nearing capacity while it awaits approval for a new facility. The shutdown may have implications for the sulphur market, as QMB is a major consumer.