Itafos CEO warns sulfur shortage could stretch into 2027 as 45% of global trade remains blocked

Itafos CEO David Delaney warned that the global sulfur shortage could persist into 2027, describing the fertilizer supply chain as being in “a crisis, no doubt about it” during a recent interview with Agriculture of America.

Delaney said roughly 45% of globally traded sulfur remains stuck behind the Strait of Hormuz, where the ongoing conflict between the United States, Israel and Iran has halted most shipping since early 2026. Russian sulfur exports have also stopped after drone strikes damaged refinery infrastructure.

The sulfur bottleneck is the binding constraint on global phosphate production. Sulfuric acid is required to convert phosphate rock into usable fertilizer, and without adequate sulfur supply, phosphate plants worldwide are running well below capacity. Delaney said the situation has worsened over the past month, not improved.

Itafos operates out of southeast Idaho, producing roughly 350,000 metric tons of P2O5 annually across monoammonium phosphate and superphosphoric acid. The company secured its own sulfuric acid supply by amending a long-term contract with Rio Tinto earlier this year.

Delaney said building meaningful new domestic phosphate capacity would cost roughly $2 billion per facility, while a world-scale ammonia-urea plant would run closer to $3 billion. He noted that U.S. phosphate capacity has contracted from 22 facilities in 1990 to 10 today, and from 16 companies to four.

Improved new-crop pricing — with December 2027 corn near $5, November 2027 soybeans near $12 and July wheat near $8 — could help offset some of the cost squeeze for farmers, Delaney said.

Source: Dakota News Network