Sulfur shortage threatens global phosphate supply as Hormuz blockade and Russia ban cut 2 of 3 top sources

The Fertilizer Institute president Corey Rosenbusch warned in an August 6 interview that a sulfur shortage is emerging as the next major threat to global phosphate supply, amplifying the disruption already caused by the Strait of Hormuz blockade. More than half of globally traded sulfur passes through the Hormuz strait under normal conditions, and virtually no commercial shipments have gotten through since the Iran conflict began, according to Rosenbusch.

Sulfur is an essential feedstock for sulfuric acid production, which in turn is required to convert phosphate rock into finished fertilizer products such as DAP and MAP. Without adequate sulfur supply, phosphate plants cannot operate at full capacity regardless of phosphate rock availability. The sulfur shortage has already forced production curtailments at multiple U.S. phosphate facilities, including four Mosaic plants that reduced output earlier this summer.

Rosenbusch noted that Russia’s decision to extend its sulfur export ban through the end of 2026 has compounded the Hormuz-related losses, removing two of the three largest sulfur supply sources from global markets simultaneously. The combined disruption is tightening sulfuric acid availability across the Americas, Europe and South Asia, where phosphate producers depend on imported sulfur.

The sulfur shortage is feeding directly into higher phosphate prices. DAP in Illinois reached $912.22 per ton as of August 7, up 24% from two years ago. Mosaic has settled its Q3 sulfur contracts at $705 per long ton and guided DAP realizations at $820 to $840 per metric ton FOB plant for the quarter. Rosenbusch called on the administration to recognize sulfur as a critical supply chain bottleneck that warrants attention alongside nitrogen and potash in any policy response to the broader fertilizer cost crisis.

Source: RFD News