Sulfur shortage keeps phosphorus supply tight, executive says

Global phosphorus supply remains tight, mainly because of sulfur, according to Craig Dick, vice president of sales and marketing at Phospholutions.

Sulfur is a critical input in phosphate fertilizer production. Dick said supply has been disrupted by the Strait of Hormuz situation, and that further export restrictions from other major producers have kept prices high. Sulfur costs have risen sharply in recent months, contributing to many phosphate production curtailments. He said curtailments reached up to 50% globally over the past year.

Dick said that even once the Strait of Hormuz opens and export restrictions are lifted, it will take many months for production to return to historic levels. He said fertilizer prices are unlikely to fall for this season and may stay high for a couple of years.

Dick is an executive at a company that sells phosphate products, so his views on prices and supply come from a commercial source. The claims about the duration of curtailments have not been independently confirmed in this report.

Higher sulfur costs have already shown up in contract markets, where India’s phosphoric acid price climbed as producers absorbed the more expensive raw material.

Source: Pacific Northwest Ag Network