Chinese sulfur prices rebound in July on anticipation of phosphate export quotas

China's domestic sulfur prices have rebounded in July, driven by restocking activity ahead of the anticipated phosphate fertilizer export quota announcements.

The domestic river port price rose to Yuan 2,345/mt on July 18, after peaking in 2025 at Yuan 2,630/mt on May 6, according to market sources.

Prices peaked in May as demand strengthened following China's relaxation of its phosphate export policy, which had previously restricted outflows. Prices eased at the start of June before rallying again amid escalating tensions between Israel and Iran. However, they have since pared gains, due to a ceasefire and a seasonal slowdown.

Sulfur is a key raw material in phosphate fertilizers. Market participants have been restocking phosphate fertilizers in July, expecting that the existing quotas of about 1.5 million mt for monoammonium phosphate and 2 million mt for diammonium phosphate will be fully utilized by the end of this month or August.

Market sources anticipate allocations of 500,000 mt to 1 million mt for MAP and 1 million mt to 2 million mt for DAP in the second phase in 2025, slightly lower than the quotas allocated in May.

However, with no official policy announcement yet, sentiment has cooled.

Some market participants noted that the overall domestic outlook remains cautious, suggesting that further price gains may be limited unless there is a clear policy shift or a significant increase in downstream demand.

Some importers, including one Thai importer, expressed confidence that the Chinese government would allow a significant level of supply during the second phase of the export quota, while others remained on the sidelines, closely watching for an official announcement.

Platts, part of S&P Global Energy, assessed DAP FOB China at $780/mt and sulfur CFR China at $280-$284/mt on July 17.