The war in the Middle East and the crisis around the Strait of Hormuz have created a serious supply risk in the global sulfur market.
Redaksiya, citing Reuters and Barron's, reports that the reduction in sulfur flows has already begun to affect the fertilizer, mining, metallurgy, and chemical industries. Sulfur is mainly obtained as a byproduct during oil and gas refining and is used in the production of sulfuric acid.
Sulfuric acid is one of the main raw materials for fertilizer production, the extraction of metals such as copper and nickel, as well as a number of industrial and pharmaceutical processes. Therefore, the disruption in the sulfur market is not limited to the chemical sector but extends to broad areas, from food production to battery metals.
The Middle East is one of the key regions in global sulfur trade. According to Barron's, the region accounts for approximately one-quarter of global sulfur production and about half of seaborne sulfur trade. Tensions around the Strait of Hormuz have made these flows riskier and more expensive.
The market was already tense before the war. The war in Ukraine, increased demand for fertilizers, and the expansion of the nickel industry in Indonesia had already pushed sulfur prices to high levels. The crisis involving Iran has further intensified this pressure.
According to Reuters, disruptions in the Gulf region are also squeezing Indonesian nickel producers. Indonesia sources a large portion of its sulfur imports from the Middle East, and this raw material is used in high-pressure acid leaching technology. This technology is crucial for processing battery metals like nickel and cobalt.
The African copper sector is also at risk. According to Argus Media, the African Copperbelt region receives over 90 percent of its sulfur imports from the Middle East. If supplies are disrupted for an extended period, some copper and cobalt producers may be forced to reduce or temporarily halt production.
States have already begun to protect their domestic markets. Reuters reports that India is considering imposing restrictions on sulfur exports. Turkey is also said to have restricted exports. China, meanwhile, is preparing to halt overseas sales of sulfuric acid obtained from metal smelting facilities starting in May.
These decisions could create additional pressure on the global market. This is because there is no complete substitute source for sulfur and sulfuric acid in the short term. Although alternative supply routes exist, it is difficult to quickly compensate for the volumes coming from the Middle East.
One of the biggest risks is linked to the food market. Sulfuric acid is used in the production of phosphate fertilizers. When fertilizer prices rise, farmers' costs increase, which in turn can affect food prices and yields in the next stage.
The World Bank also states that the Middle East war has a broad impact on commodity markets. According to the institution's April report, a significant increase in fertilizer prices is expected, which particularly raises food security risks for low-income countries.
For the mining sector, the problem is more technical, but the consequences can be equally severe. A shortage of sulfuric acid in the production of copper, nickel, and cobalt slows down the production chain. These metals are of strategic importance for electric vehicles, batteries, electricity grids, and the defense industry.
This crisis shows that the Strait of Hormuz is not just a passage for oil and gas. The military-political tensions around it are also shaking less visible but globally important sectors such as sulfur, fertilizer, metal, pharmaceutical, and food production.
If supply disruptions persist, the global market could face three pressures simultaneously: rising fertilizer prices, a decrease in mining production, and increased industrial costs. This could transform the energy crisis into a broader raw material and food crisis.