Sulfur shortage squeezes fertilizer producers as Morocco seeks new suppliers
Elemental sulfur exports fell 33% in the first half of 2026 as Persian Gulf shipments declined, raising costs for phosphate-fertilizer producers. Morocco is seeking alternative supplies, potentially creating an opening for Polish exporters.
Export disruption tightens the sulfur market
A sharp contraction in elemental sulfur trade is raising costs and disrupting phosphate-fertilizer production. Energetyka24, citing an analysis published by Strefa Inwestorów, reported that global elemental sulfur exports fell 33% in the first six months of 2026, from 13.5 million tonnes to 9 million tonnes.
The decline was driven mainly by reduced shipments from the Persian Gulf following the closure of the Strait of Hormuz. The region accounted for almost three-quarters of the fall in global sulfur exports. Before the Middle East conflict, Gulf countries represented nearly half of global sulfur trade. Exports from the United Arab Emirates are now 41% lower, while shipments from Oman, Qatar and Kuwait have fallen by more than half.
Supply has not kept pace with growing demand from fertilizer and chemical producers, while transport disruption has intensified the shortage for import-dependent countries. In June, sulfur prices in China reached 7,516.67 yuan per tonne, more than 200% above their level a year earlier. The global sulfur market was valued at about $6.56 billion in 2025 and could reach $9.34 billion by 2034, according to data cited by Energetyka24.
Fertilizer plants reduce production
Sulfur is primarily converted into sulfuric acid, a critical input for phosphate fertilizers. Restricted availability and higher prices are therefore affecting processors beyond the sulfur market itself. Mosaic suspended part of its operations in Louisiana, reduced output in Florida and temporarily curtailed production in Brazil, citing limited sulfur availability and rapidly rising prices.
Saudi Arabian Mining Company, or Maaden, lowered its 2026 phosphate production forecast and withdrew its ammonia guidance. The company attributed the changes to sulfur supply problems and transport disruption. These reductions show how a shortage of one industrial raw material can constrain fertilizer capacity across several producing regions.
Morocco is particularly exposed because it is one of the world’s largest phosphate producers and processors. From January through August, the value of Moroccan sulfur imports rose almost 190% year on year to 27.2 billion dirhams, equivalent to about $2.8 billion, according to figures cited by Strefa Inwestorów. The average import price from January through July was 182% higher than a year earlier.
The cost increase has also affected OCP. The Moroccan group recorded a loss of 2.8 billion dirhams in the first half of the year, compared with a profit of 8.6 billion dirhams a year earlier. Morocco must consequently seek alternative suppliers to protect phosphate processing and fertilizer output.
Poland emerges as a potential supplier
Poland, Germany and Spain have been identified as possible new supply sources. Strefa Inwestorów reported that Morocco was considering increasing purchases of sulfuric acid from Poland. Grupa Azoty did not confirm that report, but acknowledged that it exports sulfur to Morocco.
Poland’s position is supported by domestic extraction. Siarkopol produces more than 500,000 tonnes of native sulfur annually, supplying facilities including Grupa Azoty plants in Police and Gdańsk. This resource reduces the Polish chemical industry’s dependence on imports and its exposure to disruption in global trade.
For Polish producers, the opportunity depends on balancing export demand with the raw-material needs of domestic plants. Morocco and other importers are likely to value delivery reliability alongside price as they diversify procurement. The scale of the current trade contraction also means that additional European volumes may ease individual buyers’ shortages without quickly replacing lost Gulf supply.
