Magazine: Sulphur

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.

India's cabinet approved a proposal to spend $4.49 billion to subsidise phosphate and potassium fertilizers for the Kharif 2026 season, according to an 8 April government statement. The allocation represents an increase of approximately $460 million over the Kharif 2025 season budget, reflecting adjustments for recent trends in international prices of fertilizers and inputs including urea, DAP, MOP, and sulphur.

Three leading regional fertilizer producers have come together to create the Southeast Asia Fertilizer Association (SEAFA). The new association formally announced its formation at an industry conference in Bali on 1 April 2026. The founding members are Pupuk Indonesia (Persero) of Indonesia, Petronas Chemicals Group Berhad of Malaysia, and Brunei Fertilizer Industries (BFI) of Brunei Darussalam. Under the founding agreement, Brunei Darussalam will host the association’s secretariat. Pupuk Indonesia has been appointed to provide SEAFA’s first chairman, President Director of Pupuk Indonesia Rahmad Pribadi, with Petronas Chemicals Group providing a co-chair. The chairmanship will rotate annually between the association’s members.

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.

Morocco's OCP is bringing forward its maintenance schedule and expects a reduction of up to 30% in output for the second quarter of 2026, the company said 2 April, with some plants beginning maintenance next week.