Why are Sulfur Prices So High
While conflict with Iran continues in the Strait of Hormuz, it is farmers and fertilizer retailers who feel under siege. And with good reason.
The commodity price of sulfur has nearly tripled over the past year. Yes, tripled!
In April 2025, the sulfur export price was $270/tonne (US Funds). Projections for April 2026 now sit at $773/tonne.* For those in Canada, that is roughly $1,068 CAD.
There has always been an element of mistrust with the fertilizer industry. Some are questioning if the fertilizer industry is profiteering from this conflict at the expense of farmers. The truth is, fertilizer manufacturers are being forced to pay the same exorbitant costs.
In this post, I will discuss the reason behind the price increases and why it is difficult to predict if they will return to more historic levels.
Nitrogen and Sulfur Fertilizers are Byproducts of Petroleum Refining
The key thing to understand is that the raw nutrients in sulfur and nitrogen fertilizers from the refining of oil and gas. And much of the world’s supply of petroleum comes from the Middle East.
While phosphorus isn’t directly affected, sulfuric acid is used to manufacture most phosphate fertilizers.
High Sulfur Prices are Guided by Global Supply and Demand
Farmers in the US and Canada are asking why this is affecting domestic fertilizer costs. After all, don’t we produce enough oil and gas here?
Like grain, raw fertilizer ingredients are commodities. Prices are set on the global market. So when there’s a shortage of supply and a high international demand, prices go up for everyone. It’s fantastic if you’re a seller. It can be crippling if you’re a buyer.
And as I mentioned, as a fertilizer manufacturer, we too are buyers. Today, sulfur represents 89% of our product cost on degradable elemental sulfur. A year ago, it was 67%.
The Strait of Hormuz: A Fertilizer Choke Point
In a recent analysis, Marina Simonova, Head of Fertilizer Analytics for Argus, really put the scope of the problem into perspective. She noted that 50% of global sulfur exports (and 30% of urea exports) come from the Middle East. That’s over 60 million tonnes of fertilizer annually.
Of this total, 45 million tonnes are shipped through the Strait of Hormuz, which has been closed to tanker traffic due to the conflict with Iran.
It is a narrow passage where ships are sitting ducks for missile and drone attacks. No traffic is going in or out.
As you can imagine, this is driving the commodity price through the roof. Even if they wanted to, North American refineries and fertilizer processors can’t just ramp up production to fill the gap. It is simply too large.
Planning for Your Fall Fertilizer Buy
Farmers and farm supply retailers are caught in the crossfire. It’s a no-win scenario. The rising fertilizer costs are eroding profit margins. But if farmers hold back on fertilizer, it will reduce yield and crop quality.
So, do you still invest in a fall sulfur this year? And when is the right time to buy?
I honestly wish I had the answer. There seems to be no progress on negotiations to reopen the strait. Until a solution is in place, shipping will remain frozen and commodity prices will remain high. Depending on what happens (boots on the ground?) costs could climb even further.
Even when the conflict ends, it is expected that it will take months for shipping to return to normal. For most of the world, oil and gas will take priority due to perceived urgency when the strait opens. Sulphur will be among the last products to move.
When it comes to fall sulfur purchases, we are recommending that agronomics be your guide. In fields with a known deficiency, a fall application of degradable bentonite sulfur still provides the lowest cost and the greatest return on investment.
At Keg River, we’re doing our part to support our retailers and farmers by absorbing as much of the price increases as we can. We want to assure customers that product quality and service will not be compromised to save money. We won’t ever take shortcuts. Keg River has a very talented team in place, and we will be raring to go if the expected market correction takes place this summer. When the market shifts…we will all be ready.
We’re all hoping to see a long-term resolution. In the meantime, we’re all in this together – and we’re here to support our customers through thick and thin. It’s how we do business.
Daryl Schuster
President
Keg River Chemical Corp.
*Based on Fertcom commodity pricing, April 2025-April 2026.