The Inequal Impact of Sulfur Commodity Pricing on Canadian Fertilizer Makers
As we shared in our previous post, the ongoing conflicts in the Strait of Hormuz and Ukraine have impacted the world market for sulfur. However, a significant discrepancy in how sulfur commodities are priced in North America has affected Canadian sulfur fertilizer producers to a much greater degree than those in the eastern US or American Midwest. This has been reflected in price differentials over the past several months.
How Sulfur Pricing Works
Like grains and other crops, sulfur is sold on the commodities market. Keg River Chemical uses the S&P Fertecon Report and Green Markets Reports for relevant market updates.
Sulfur pricing in North America is dictated by two indexes: the Tampa index (which Eastern and Midwest fertilizer manufacturer costs are based on) and the Vancouver index (which West Coast and Canadian manufacturer costs are based on). The Tampa price, is set quarterly, but typically mirrors the Vancouver spot price, which is put out weekly.
The biggest source of sulfur is from the oil and gas industry. Keg River purchases our sulfur (sold as molten sulfur) from Alberta energy producers, which base their pricing on the Vancouver index. This is referred to as the export price, even though it is purchased domestically by Keg River.
The Growing Gap Impacting Canadian Manufacturers
Beginning in April 2026, a massive gap in the spot price between Tampa and Vancouver has developed. Where the two indexes have been historically in line, the price listed on the Vancouver Index is now significantly higher.
In July, the gap widened as the Vancouver spot price increased to $1200 USD/MT. There is currently a $495 US premium for those paying the Vancouver price over others paying the Tampa price.
There were hopes that the 3rd Quarter spot price for Tampa would have narrowed that gap to ensure that all fertilizer manufacturers were on the same playing field. However, this has not materialized. Accusations from US House Representatives that the Chinese state is manipulating the sulfur markets by banning the export of Chinese-made sulfuric acid* may be a contributing factor.
Absorbing Costs Where Possible
As a Canadian fertilizer manufacturer, Keg River is doing what we can to minimize passing on costs to our retail customers on both sides of the border. We also remain steadfast in our commitment to only using the highest quality ingredients to ensure maximum performance in the fields.
A Sulfur Alternative In Challenging Economic Times
The reality is that sulfur is an essential macro nutrient required for healthy plant growth. All sulfur fertilizers are being impacted by rising prices. As farmers are well aware, in times of economic pressure, a shift in tactics may be required.
Degradable sulfur fertilizer is still the most economical solution to address sulfur demand, due to its high analysis and comparatively lower cost to AMS and other products. And fall is still the most practical time to apply it.
If your customers are seeking an alternative to other sulfur fertilizers, Keg River has a variety of resources explaining how our products work – including instructions for application and safe handling. Visit our website to learn more. We encourage you to click the link below to learn the benefits of fall-applied economical sulfur.
* “Lawmakers Address China Fert Manipulation.” Green Markets (August 28, 2026), 24.