China Sulfur Prices Hit Record High | Phosphate Fertilizer Market Update

2026-06-09

Market Insight | June 2026

China’s sulfur market has moved into record territory. In early June 2026, spot prices in some regions exceeded RMB 10,000/MT. Compared with around RMB 3,850/MT at the beginning of the year, this represents an increase of nearly 160% and has become a major cost signal for the phosphate fertilizer industry.

Key Takeaways

China’s sulfur supply remains tight, supported by lower import arrivals, logistics disruption, and reduced port inventories.
Sulfur is a core upstream raw material for sulfuric acid, phosphoric acid, and phosphate fertilizers such as MAP, DAP, and MKP.
Higher sulfur prices are putting pressure on production costs and margins across the phosphate fertilizer value chain.
For international buyers, reliable supply channels and forward procurement planning are becoming more important.

Supply Tightness Remains the Main Driver

The latest price rally has been driven mainly by supply-side pressure. China continues to rely heavily on imported sulfur, especially from the Middle East. When import arrivals slow down and port inventories fall, the domestic spot market becomes more sensitive to any change in availability.

Another structural factor is that sulfur is largely produced as a by-product of oil and gas refining. This means supply cannot expand quickly simply because prices rise. In a tight market, this by-product nature can make price corrections slower and more uncertain.

Phosphate Fertilizer Costs Are Under Pressure

Sulfur is used to produce sulfuric acid, which is essential for phosphoric acid and downstream phosphate fertilizers. This cost chain directly affects products including monoammonium phosphate (MAP), diammonium phosphate (DAP), and monopotassium phosphate (MKP).

As sulfur prices rise, phosphate producers face higher input costs. Large producers may be able to maintain operating stability, but cost pressure is increasing across the industry. For smaller or less integrated manufacturers, margins may become more difficult to protect.

Demand Is Still Providing Support

The current market is not being supported by fertilizer demand alone. Agriculture, battery materials, and other industrial applications continue to consume sulfur and sulfuric acid. This broader demand base is one reason the market has remained firm even after a sharp price increase.

For the fertilizer sector, this means sulfur volatility should not be treated as a short-term raw material issue only. It is now an important variable in cost control, pricing, and supply planning.

What This Means for Global Buyers

For importers and distributors, rising sulfur prices may gradually influence the quotation logic of phosphate-based fertilizers. Buyers of MAP, DAP, MKP, and other phosphate products should pay closer attention to upstream raw materials rather than looking only at finished fertilizer prices.

In a volatile market, short-term spot purchasing may carry more risk. Inventory planning, supplier reliability, payment terms, and shipment timing all become more important when raw material costs are moving quickly.

（Supply chain reliability is becoming a more important purchasing factor）

Luobu Perspective

At Sichuan Luobu New Material Technology Co., Ltd., we are closely monitoring sulfur, phosphoric acid, and phosphate fertilizer market movements. For customers, the key issue is not only price. It is whether supply can remain stable when upstream costs are changing quickly.

In the months ahead, dependable sourcing, consistent production, and long-term cooperation will matter more. For fertilizer buyers, securing reliable supply channels remains a practical priority as market conditions continue to evolve.