War-driven energy crunch exposes global dependence on sulfur supplies

Sulfur — a commodity critical to industries ranging from pharmaceuticals to agriculture and mining — rarely attracts attention, but the ongoing conflict involving Iran is exposing just how vital it is to the global economy.

As the war disrupts energy markets, it is also rattling sulfur supply chains. Shocks to energy production quickly spill over into sulfur availability, seeing as much of the world’s sulfur is produced as a byproduct of oil and gas processing, as explained in a Foreign Policy article.

Once processed into sulfuric acid — often called the “king of chemicals” — it becomes essential for fertilizers, metals processing and pharmaceuticals, amplifying the impact of any disruption.

The Middle East dominates global sulfur exports, accounting for roughly half of total supply. Major importers include China, India, Indonesia and the United States. But shipping disruptions linked to tensions around the Strait of Hormuz have choked off flows, sending shockwaves through global markets.

“Now we’re in uncharted territory really, because of how important the Middle East is,” Meena Chauhan of Argus Media told the outlet.

Even before the conflict escalated, the sulfur market was already tight, with prices nearing multi-year highs due to the Russia-Ukraine war and rising demand from fertilizers and Indonesia’s nickel sector, according to analysts at Wood Mackenzie.

Export curbs and supply shocks deepen global squeeze

The war has intensified those pressures, pushing sulfur prices sharply higher and prompting governments to act. Turkiye has introduced a ban on sulfur exports, while India is considering similar restrictions. Meanwhile, China is expected to halt exports of sulfuric acid derived from metal smelting starting in May.

China plays a dual role as both the world’s largest sulfur importer and a major producer, accounting for around 16% of global output — though most of it is consumed domestically. It is also the top exporter of sulfuric acid, supplying key markets such as Chile, Indonesia, Morocco and Saudi Arabia.

These overlapping restrictions and supply disruptions are tightening an already strained market. Sulfuric acid is difficult to substitute, leaving industries with limited alternatives.

“Even combining all of those potential bits of supply around the world would still not be enough to meet the volume that the Middle East exports,” Chauhan said.

The journal emphasizes in its article that the consequences extend well beyond the chemicals sector. Fertilizer production — and by extension global agriculture — is heavily dependent on sulfuric acid, raising concerns about further strain on food markets. Mining operations are also at risk, particularly in sectors like nickel production in Indonesia, where producers rely heavily on Middle Eastern sulfur supplies.

With traders scrambling to secure alternative sources, the sulfur crunch is emerging as a key — if underreported — pressure point in the global economy.

By Nazrin Sadigova