Sulfur is crucial in fertilizer production, particularly in manufacturing phosphate-based fertilizers such as DAP (Diammonium Phosphate) and MAP (Monoammonium Phosphate). As a key industrial commodity, sulfur prices and availability directly influence global fertilizer costs. In 2025, fluctuating supply chains, geopolitical factors, and increased demand for sulfur-based agricultural inputs will reshape the global fertilizer market. This blog explores how sulfur markets affect fertilizer pricing and what stakeholders should expect in the coming months.

The Role of Sulfur in Fertilizer Production

Understanding the fundamental role of sulfur in fertilizer production is crucial. Sulfur is a key component in sulfuric acid, the primary input for phosphate fertilizer production. Approximately 90% of global sulfuric acid production is utilized in manufacturing phosphate fertilizers, making it a pivotal factor in fertilizer affordability and availability.

Key fertilizers derived from sulfur include:

• Diammonium Phosphate (DAP) – The most widely used phosphate fertilizer.
• Monoammonium Phosphate (MAP) – A high-phosphate fertilizer for various crops.
• Ammonium Sulfate (Amsul) – A nitrogen-sulfur blend for soil enrichment.
• Superphosphates (SSP/TSP) – Essential phosphate fertilizers containing sulfuric acid.

The fluctuation of​​ sulfur prices impacts the production costs of these fertilizers. This volatility significantly and immediately affects farmers, traders, and agribusinesses worldwide, underlining the situation's urgency.

Factors Driving Sulfur Market Trends in 2025

Several key factors are influencing sulfur market prices and supply chains in 2025:

1. Global Supply and Refinery Output

• Sulfur is primarily a byproduct of oil and gas refining, meaning its production is tied to the petrochemical industry.
• Lower oil-refining activity can reduce the sulfur supply, causing price volatility for fertilizer manufacturers.
• The Middle East and China remain dominant sulfur producers, with fluctuations in refinery output impacting global availability.

2. Geopolitical Uncertainty & Trade Disruptions

• Sanctions, export restrictions, and political tensions in major sulfur-producing countries can disrupt supply chains.
• China’s environmental policies have limited sulfuric acid production, further tightening global supply.
• Trade barriers in key regions (such as the European Union’s CBAM regulations) could also affect sulfur-based fertilizer costs.

3. Rising Demand for Phosphate Fertilizers

• The agriculture sector’s increasing need for phosphate-based fertilizers drives demand for sulfuric acid.
• India, Brazil, and Africa are emerging as significant phosphate fertilizer importers, keeping sulfur demand strong.
• Expansion of precision agriculture is encouraging more efficient sulfur use in fertilizers.

4. Shipping and Logistics Costs

• Freight rates and port congestion can impact sulfur transport, increasing costs for fertilizer producers.

• The limited availability of bulk carriers has occasionally delayed sulfur shipments, leading to short-term price spikes.

Sulfur Price Outlook & Its Impact on Fertilizer Costs

📈 Higher sulfur prices = Increased phosphate fertilizer costs, affecting agricultural production budgets.

📉 Lower sulfur prices = More affordable fertilizers, improving accessibility for farmers worldwide.

In 2025, sulfur prices remain volatile, but a steady recovery in supply may stabilize fertilizer costs later in the year. Producers and traders should monitor refinery output, geopolitical risks, and demand fluctuations to make informed decisions.

Conclusion

The sulfur market is a critical influence on global fertilizer pricing. With increasing demand for phosphate fertilizers, shifting oil refinery production, and evolving trade policies, sulfur prices in 2025 will be key in shaping agriculture and food security worldwide. To navigate these changes effectively, stakeholders across the fertilizer supply chain must recognize the importance of their role and remain adaptable and well-informed.