Sulfur shortage caused by Strait of Hormuz blockade drives phosphate fertilizer prices higher

Fertilizer shipments through the Strait of Hormuz have remained virtually halted for a second consecutive month, worsening sulfur shortages and driving phosphate fertilizer prices higher in the global market. According to data from World Visualized cited by Swiss financial group Syz Group, fertilizer shipments through the strait fell to zero in September and October 2026. Amid disrupted logistics routes, sulfur prices have more than doubled to over $1,000/t, while phosphate fertilizer prices have risen by 25–30%.

Before the escalation of the Middle East conflict, approximately 20% of globally traded nitrogen fertilizers passed through the Strait of Hormuz. According to an S&P Global assessment published on October 19, the route accounted for about 29% of global urea trade, nearly half of seaborne sulfur shipments and around 21% of ammonia trade. Unlike crude oil suppliers, which have partially redirected exports through pipelines and alternative shipping routes, fertilizer and raw material producers have so far been unable to find an adequate alternative to the Strait of Hormuz.

The most severe situation has developed in the sulfur market, as sulfur is a key raw material for phosphate fertilizer production. Restricted shipments from the Persian Gulf have caused a sharp increase in sulfur prices, directly raising phosphate production costs. Raw material shortages are already forcing some producers to reduce output. In particular, US company Mosaic has suspended operations at some of its phosphate fertilizer facilities, including its South Fort Meade site in Florida.

Meanwhile, the urea market has proved more resilient to logistics disruptions than previously expected. Increased exports from China and the US have partially offset reduced shipments from Persian Gulf countries, helping contain nitrogen fertilizer shortages. However, opportunities to replace disrupted supplies remain limited in the phosphate fertilizer segment due to its dependence on sulfur. This creates additional risks for fertilizer importers and producers, particularly ahead of a seasonal increase in demand from farmers.

According to WTO-AXSMarine international trade monitoring data, fertilizer shipments through the Strait of Hormuz have remained near zero for two months. Meanwhile, the UN-proposed special fertilizer shipping corridor has yet to become operational due to the lack of an agreement between the US and Iran. Further developments in the global market will depend on the restoration of shipping through the strait and producers’ ability to secure alternative sulfur supplies. Prolonged restrictions could intensify upward pressure on phosphate fertilizer prices and increase costs for farmers.

Tags: Hormuz, fertilizers