Sulphur Fertilizer Market and Price Analysis
Key themes affecting the sulphur fertilizer market
Almost all sulphur is produced as a by-product of the oil and gas industry, and as such it can present a disposal issue for producers. The demand drivers for oil and gas are not closely linked to the demand drivers for the industries in which sulphur is consumed, frequently leading to periods of under- or over-supply in sulphur. Climate change is driving decarbonisation of the global economy, which in the longer term should lead to the stabilisation and possible reduction in the production of fossil fuels and therefore sulphur from those sources. Demand for sulphur and sulphuric acid in both agricultural and industrial applications will continue to increase, with potential cost implications in those markets if a structural deficit in sulphur supply evolves. In the meantime, environmental pressures in sulphur producing regions mean producers are increasingly reluctant to pour sulphur into block at times of over-supply and low prices, not least because the crushed lump sulphur reclaimed from block is increasingly difficult to sell due to handling issues. When balanced or in surplus, the price of sulphur tends to mostly reflect the handling and logistics costs of supply. As such, price volatility is significant as the product moves from deficit to surplus and given this dependence on the oil and gas sector, the sulphur industry and its customers face many challenges and uncertainty going forward. IHS Markit, through its detailed analysis of the oil and gas, industrial and fertilizer markets is uniquely placed to provide insight into the development of sulphur markets.
| Key sulphur indicators |
| | 2017 | 2018 | 2019 | 2020 | 2021 |
| Sulphur cfr China (granular, spot) | $/t | 69 | 154 | 99 | 79 | 217 |
| Sulphur cfr North Africa contract (quarterly) | $/t | 86 | 140 | 93 | 63 | 170 |
| Global elemental sulphur imports | mln t | 35.0 | 37.1 | 37.2 | 35.6 | 35.8 |
| Oil-based production | mln t | 31.1 | 31.9 | 32.6 | 31.0 | 32.1 |
| Global sulphuric acid trade | mln t S | 18.9 | 20.0 | 20.3 | 20.2 | 20.1 |
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