Record Sulfur Prices Push Global Phosphate Fertilizers Into a Cost Squeeze

iHumate | May 31, 2026

Cargo ship and supply-chain transport

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What happened in May

In May 2026, the global fertilizer story moved from shipping disruption to raw-material cost stress. S&P Global reported on May 29 that persistent sulfur price increases were squeezing fertilizer margins and causing production interruptions. Sulfur is a critical input for phosphoric acid, MAP, DAP and SSP production.

Sulfur becomes the phosphate bottleneck

S&P Global/Platts assessed Middle East sulfur at $815-820/mt FOB and Brazil sulfur at $1,200/mt CFR on May 28. The report also cited EFIC halting granular SSP output in Egypt and Mosaic pausing some phosphate rock and chemical operations in Brazil because of sulfur supply challenges and rising raw-material costs.

Urea and phosphate remain under pressure

The AMIS May 2026 Market Monitor said the effective closure of the Strait of Hormuz continued to disrupt fertilizer and input supply, pushing urea and phosphate prices higher. AMIS fertilizer data showed April urea prices up 22.7% month on month, phosphate up 10.9% and ammonia up 18.2%.

World Fertilizer, citing ICIS analysis, said phosphate markets are reorienting around tighter availability and elevated prices as traders plan for the possibility that normal trade flows may not resume quickly.

What comes next

Near-term prices will depend on the reopening of Hormuz, alternative sulfur supply, phosphate operating rates and import demand. If sulfur remains expensive, phosphate fertilizer will carry a firmer cost floor.

Longer term, buyers are likely to prioritize supply security, contract structure and inventory discipline. Itafos and Rio Tinto’s May sulfuric acid contract amendment shows how suppliers are adapting to sulfur volatility through longer-term arrangements.

Impact on specialty fertilizers

This does not mean specialty fertilizers replace core NPK nutrition. It does mean nutrient-use efficiency matters more. Humic acid, amino acid chelates, seaweed extracts, microbial fertilizers and liquid specialty fertilizers can support root activity, phosphorus uptake, stress tolerance and lower nutrient loss.

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