Sulphur Shortage Threatens Global Agrochemicals Market

Sulphur Scramble Poses Fresh Threat to Fertiliser Supply and Global Food Prices

LONDON, United Kingdom — October 13, 2026 — An intensifying competition for the world's increasingly scarce industrial sulphur supplies is posing a fresh threat to global fertiliser production and food prices, as deep-pocketed mining companies outbid fertiliser manufacturers for the commodity, the Financial Times reported on October 13. The development is adding significant new pressure to the Agrochemicals Market, which is already navigating severe supply chain disruptions stemming from the ongoing Iran conflict and the near-closure of the Strait of Hormuz. 

Disruption in the Strait of Hormuz has created a significant shortage of sulphur a byproduct of the oil and gas industry that is converted into sulphuric acid and used to produce both copper and phosphate fertilisers. Roughly half the world's sulphur trade passed through the strait before the Iran war began in late February 2026, but the blockage has sent sulphur prices close to 10 times above pre-conflict levels, surging from a typical range of $100–$200 per tonne to nearly $1,000 per tonne. 

Raghav Jain, at commodities price agency Argus, said the mining sector boosted by the proceeds of higher metals prices was "winning the bidding war" for the meagre supply over the lower-margin fertiliser industry. Andy Jung, chief economist at US fertiliser company Mosaic, warned: "We're not able to pass along those higher costs due to farmer affordability, and as such the other option is to slow production," adding that the situation would eventually "show up meaningfully in global yields" and drive food prices higher. 

Morocco's OCP, the world's biggest phosphate exporter, has warned of the effects of soaring sulphur prices, noting it cannot pass costs on to hard-pressed farmers. OCP has sought to shift production towards fertilisers that require less sulphur and is developing alternative non-oil and gas sources. China has also moved to ban exports of sulphuric acid, further tightening global supply. According to data and analytics platform Kpler, disruption to the sulphur trade is "growing" again as vessels remain stuck in the Strait of Hormuz, with no near-term resolution in sight. 

Key Highlights: 

• Sulphur prices have surged close to $1,000 per tonne in 2026, up from a typical pre-conflict range of $100–$200 per tonne, representing a near-tenfold increase driven by Strait of Hormuz disruption 

• Mining companies, benefiting from elevated metals prices, are outcompeting fertiliser producers in securing scarce sulphur supplies, according to Argus data 

• Major fertiliser producers including Mosaic and OCP have been forced to curtail phosphate fertiliser output as soaring sulphur costs cannot be passed on to farmers 

• China has banned exports of sulphuric acid, compounding an already severely constrained global supply picture and limiting alternative sourcing options for fertiliser manufacturers 

Analyst Insight: 

According to analysts at Next Move Strategy Consulting, the sulphur supply crisis represents a compounding structural risk for the global agrochemicals sector, which was already navigating headwinds from geopolitical disruption and elevated input costs. The sector's heavy dependence on Gulf-sourced sulphur for phosphate fertiliser production exposes a critical vulnerability in global agricultural supply chains that could not be resolved quickly even if the Strait of Hormuz were to reopen. NMSC analysts note that the competition between the mining and fertiliser industries for limited sulphur volumes is a novel and underappreciated demand-side pressure, one that could weigh on fertiliser output volumes and market growth trajectories through the forecast period. The downstream risk to crop yields and food security in import-dependent developing economies warrants close monitoring by policymakers and market participants alike. 

Industry Outlook: 

The global Agrochemicals Market is projected to reach USD 305.01 billion by 2030 at a CAGR of 3.4%, faces material near-term headwinds as sulphur scarcity constrains phosphate fertiliser output and threatens agricultural productivity across key growing regions. The ongoing competition between the mining and fertiliser sectors for limited sulphur supplies is expected to persist as long as the Strait of Hormuz remains disrupted by the Iran conflict. Industry participants are accelerating efforts to diversify sulphur sourcing including exploration of pyrite and pyrrhotite as alternative inputs and to develop lower-sulphur fertiliser formulations such as triple superphosphate. However, analysts caution that these transitions will take considerable time to scale to commercially meaningful volumes. The downstream impact on food prices and agricultural productivity in developing economies, particularly across Sub-Saharan Africa and South-East Asia, remains a critical risk factor for the agrochemicals sector in the period ahead.

Source: Financial Times

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Prepared By: Sanyukta Deb