Sulfur shortage threatens to push US phosphate fertilizer prices higher

A sulfur shortage in the United States is already forcing phosphate fertilizer producers to cut output and is raising the risk of further price increases ahead of purchases for the 2027 crop year. Eight Florida lawmakers have urged the US administration to take action to stabilize raw material supplies.

Sulfur prices delivered to Tampa, one of the main US phosphate fertilizer production hubs, have exceeded $1,100/t since May 2026. By comparison, the average price over the previous decade was around $172 per long ton.

The shortage has already forced US producers to reduce or halt operations at some facilities. Mosaic, the largest US phosphate fertilizer producer, previously cut operating rates at its plants in Florida and Louisiana by around 50%.

Sulfur is a key input in the production of DAP and MAP: around 4 tons of sulfur are required for every 10 tons of these fertilizers. The sharp increase in sulfur costs is therefore directly raising phosphate fertilizer production costs and could add further price pressure on farmers.

The situation is being aggravated by disruptions to global trade. Nearly half of global seaborne sulfur exports typically pass through the Strait of Hormuz, while export restrictions from Russia and China have further tightened supply. As a result, risks to US phosphate fertilizer availability remain elevated.

Tags: USA, fertilizers, phosphate fertilizer, prices