Xin Lang Cai Jing·2025-12-10 13:45Core Viewpoint - The recent surge in sulfur prices has reached a nearly ten-year high, significantly increasing cost pressures for downstream industries such as phosphate fertilizers, which are crucial for food security in China [1][2]. Group 1: Sulfur Price Trends - Sulfur prices have been on the rise since last year, with a notable spike in October 2023. As of December 5, the price of granular sulfur at the Yangtze River port reached 4,115 RMB/ton, marking a nearly 200% year-on-year increase [1]. - The average import price of sulfur in China rose from $175.79/ton in January to $314.94/ton in October, reflecting a 79.21% increase [2]. - Recent contracts from Qatar, Kuwait, and the UAE for December sulfur have reached FOB $495/ton, surpassing historical highs [3]. Group 2: Impact on Downstream Industries - Sulfur is primarily used to produce sulfuric acid, with phosphate fertilizers being the largest consumer, accounting for over half of sulfur consumption [3]. - The price of industrial-grade monoammonium phosphate (MAP) has surged since November, with an increase of approximately 500 RMB/ton, leading to a current average price of around 6,500 RMB/ton, a year-on-year increase of 12.07% [3]. - The domestic sulfuric acid market average price reached 930 RMB/ton by the end of November, up 124% from the beginning of the year [3]. Group 3: Company Responses and Market Adjustments - Yuntianhua has called for measures to mitigate the impact of rising sulfur costs, ensuring sufficient supply of phosphate fertilizers and stabilizing market prices [1]. - The phosphate fertilizer industry is expected to see a reduction in production capacity utilization, projected to drop to 50.86%, a decrease of 5.8 percentage points year-on-year [3]. - The rising sulfur prices have prompted the titanium dioxide industry to initiate its sixth round of price increases this year, with leading companies raising prices by up to 700 RMB/ton [4]. Group 4: Future Market Outlook - The domestic sulfur market is anticipated to experience a volatile upward trend, with no new domestic sulfur production facilities planned and tight import conditions expected to persist [4]. - The demand for sulfur is likely to remain strong as phosphate fertilizer production resumes and winter storage needs increase [4]. - Global sulfur production is expected to grow slowly due to supply constraints, particularly in high-sulfur crude oil regions like the Middle East [5].