Russian sulfur export ban to last until end-Dec, says government

Following multiple refinery attacks and sulfur production issues, the Government of the Russian Federation announced Nov. 2 a temporary ban on the export of technical sulfur, adding that the ban will last until Dec. 31, 2025.

The export ban will apply to sulfur in liquid, granular and crushed lump form, according to the announcement, and will not apply to the supply of raw materials to the Eurasian Economic Union (EAEU) states, as well as to Abkhazia and South Ossetia.

According to the Cabinet of Ministers, the export ban will stabilize the shipment of raw materials to the domestic market with an aim to maintain the current production volumes of mineral fertilizers and ensure the country's food security.

Platts previously reported on the expectation of such an announcement, since Russia's Oil and Gas infrastructure was vastly impacted by attacks from Ukraine.

In October, one trader said that the drone strike on Russia's Astrakhan gas refinery had majorly disrupted sulfur production at the site. According to the source, sulfur production at the refinery accounts for 60% of Russia's total.

Prices in the European sulfur market have been on an upward trend over the past few months, impacted by a global lack of supply following Russia's temporary halt to exports. Following the official announcement, key consumers in the market may turn to alternative major sulfur exporters in locations such as the Middle East or the West of the US.

One Middle Eastern producer said, "We have already seen the effects of no Russian sulfur ... I am not sure we will see any more effects."

Another trader source from Europe said, "We are going through a structural reshape of the market as Russia has shifted from being the primary major exporter to being an importer last month."

There are still many questions about how the market will look long term amid the Russia-Ukraine conflict as market participants try to navigate the ongoing shift in market structure.

Platts, part of S&P Global Commodity Insights, assessed the FOB Baltic granular sulfur spot price at $360/mt on Oct. 30.