Global sulfur demand totalled just over 71 million t in 2024, with 60% of this for the production of fertilizers. Phosphoric acid leads the sector, used in the production of downstream processed phosphates products. 1 t of sulfur makes approximately 3 t of sulfuric acid. Many integrated fertilizer producers have their own sulfur burners, or sulfuric acid plants which convert elemental sulfur into sulfuric acid for consumption.
Sulfur prices rose at an accelerated pace at the end of the 1Q25. This brought prices up to the highest level since July 2022 with prices in late March 2025 reaching the US$290/t cost and freight in Indonesia, raising the likelihood of a correction – as was the case in August 2022 – but while geopolitical uncertainties were again a key component in the rapid run up of prices,these are underpinned by firmer fundamentals. Demand is rising this year, notably in Indonesia, while supply increases are not keeping pace. This is likely to provide a floor to any price correction.
Middle East fob spot prices rose by a substantial 62% during the first quarter of this year, and the second quarter started on a firm note as QatarEnergy Marketing raised its April Qatar Sulfur Price (QSP) to US$275/t fob. This is up steeply from March’s QSP of US$202/t fob – a rise of US$73/t in just a month. It is unusual for sulfur prices to come up by 36% in the space of four weeks, but the spot market moved up at an accelerated pace through the month of March as buyers sought to secure supply.
In Indonesia, demand from nickel producers has been robust, supported by recent expansions from PT Lygend and QMB New Battery Materials, attracting 350 000 t of sulfur imports in January alone. Indonesian nickel projects have added to sulfur demand rapidly in the last few years, and in 2024, Indonesia grew to an import market of 3.6 million t of sulfur from just 796 000 t in 2020.
In 2024, China imported a significant volume of sulfur despite a growth to domestic sulfur production coupled with curbed fertilizer exports. This is attributed to the rising demand from the non-fertilizer sector and for the Chinese electric vehicle (EV) transition. This year imports are expected to remain robust, supporting the view for trade in the short-term.
In Morocco, two new sulfur burners started in 2024 at OCP’s operations for processed phosphates production, with the latter still in ramp-up through early 2025, with 605 000 t sulfur imported to Morocco. Last year, Moroccan sulfur imports reached 8.2 milllion t, with a healthy view expected for 2025.
Shifting geopolitics adds to volatility
Shifting global geopolitics are adding to uncertainty around the efficiency of supply chains moving forward, with the risk to disruptions heightened – adding to price volatility. The unpredictability around the introduction of US tariffs by the Trump administration, and counter tariffs from its trading partners, are causing uncertainty in the markets. Many expect rising prices and a slowdown to global trade and economic growth.
The proposed tariffs on Chinese vessels calling at US ports would also be highly disruptive for sulfur movements among many other commodities, and add substantial additional costs to product flows.
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By Meena Chauhan, Maria Mosquera, and Liliana Minton, Argus Media.