The blockage of shipping in the Strait of Hormuz was compounded by the war with Iran, and the global supply of sulfur was drastically tightened. As a by-product of the oil and gas industry, sulfur is a core raw material for the production of sulfuric acid, phosphate fertilizer, and copper refining. The current price has soared to close to 1,000 US dollars per ton, which is nearly ten times higher than before the war. Mining companies with stronger financial resources overtook low-profit fertilizer manufacturers in sulfur bids, and fertilizer companies were forced to cut production. Fertilizer giants such as Meisheng and Morocco's OCP said that it is difficult to completely pass on raw material costs to farmers, warning that subsequent global crop yields will be impacted and push up food prices. Raghav Jahn, an analyst at commodity pricing agency Argus, said that in this bidding war for scarce resources, the fertilizer industry, which has low profit margins, is at a disadvantage. Agency Kpler suggested that the problem of stranded ships in the Strait of Hormuz is still worsening, and sulfur trade disturbances continue. Sulfur affects industrial manufacturing and agricultural production at the same time. Tight supply chains will not only affect the electronics and power grid industry chains, but food prices such as bread may also rise next year.
Zhitongcaijing · 2d ago
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The blockage of shipping in the Strait of Hormuz was compounded by the war with Iran, and the global supply of sulfur was drastically tightened. As a by-product of the oil and gas industry, sulfur is a core raw material for the production of sulfuric acid, phosphate fertilizer, and copper refining. The current price has soared to close to 1,000 US dollars per ton, which is nearly ten times higher than before the war. Mining companies with stronger financial resources overtook low-profit fertilizer manufacturers in sulfur bids, and fertilizer companies were forced to cut production. Fertilizer giants such as Meisheng and Morocco's OCP said that it is difficult to completely pass on raw material costs to farmers, warning that subsequent global crop yields will be impacted and push up food prices. Raghav Jahn, an analyst at commodity pricing agency Argus, said that in this bidding war for scarce resources, the fertilizer industry, which has low profit margins, is at a disadvantage. Agency Kpler suggested that the problem of stranded ships in the Strait of Hormuz is still worsening, and sulfur trade disturbances continue. Sulfur affects industrial manufacturing and agricultural production at the same time. Tight supply chains will not only affect the electronics and power grid industry chains, but food prices such as bread may also rise next year.
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