Sulphur Prices Rise Due To Russia-Ukraine, West Asia Wars, Pg9

Key Highlights:

• International sulphur prices have surged nearly four-fold, rising from $280 per tonne in July 2025 to $1,050 per tonne in July 2026.
• This price escalation is primarily driven by supply disruptions caused by the Russia-Ukraine war and conflicts in West Asia.
• India's sulphur import cost increased 2.5 times, from $248 million in 2024 to $638 million in 2025.
• India, despite being among the top 10 producers, relies heavily on imports, with West Asia supplying approximately 90% of its total sulphur imports.
• The Fertiliser Association of India estimates that 52% of the sulphur required by the domestic fertilizer industry was imported in 2024-25.
• A significant new demand driver for sulphur is the metals processing industry, particularly for EV batteries.

Sulphur Price Surge.jpg

Detailed Insights:

• Sulphur prices began climbing in late 2025 due to rising demand and the Russia-Ukraine war, then accelerated sharply after March 2026 following attacks on Iran.
• Russia, a major sulphur producer, restricted industrial sulphur exports until December 2026 in response to Ukrainian drone strikes on its oil and gas infrastructure.
• West Asia accounts for over 45% of global seaborne sulphur trade, making conflicts in the region highly disruptive to global supply.
• China also restricted sulphuric acid exports in 2026 to meet its domestic needs, further tightening the global sulphur market.
• The CRU Group reported a global structural deficit in sulphur by 2024, with demand exceeding supply by about 1.9 million tonnes in 2025.
• Sulphuric acid, derived from sulphur, is crucial for High-Pressure Acid Leach (HPAL) plants used to extract nickel from laterite ores for EV batteries.
• Indonesia's demand for sulphuric acid and imports quintupled between 2021 and 2025 due to its expanding nickel processing industry for EV batteries.

Key Concepts Involved:

• Sulphur: A non-metallic chemical element primarily used in the production of sulphuric acid, essential for fertilizers and industrial processes.
• Petroleum Refining: The process of converting crude oil into various products, yielding sulphur as a significant byproduct.
• Natural Gas Processing: The purification of raw natural gas, from which sulphur is also recovered as a byproduct.
• Structural Deficit: A persistent market condition where demand for a commodity consistently outstrips its supply, indicating a fundamental imbalance.
• High-Pressure Acid Leach (HPAL): A hydrometallurgical process using sulphuric acid under high temperature and pressure to extract metals like nickel from laterite ores.