China's sulphur imports fell sharply in August amid soaring prices driven by supply disruptions in the Middle East, raising concerns about potential impacts on the country's next planting season. According to recent customs data, imports declined nearly 30% from July and were down 65% compared to August 2025, totaling approximately 277,300 tonnes. Despite the reduced volume, the overall value of sulphur shipments increased by more than 20% year on year due to a significant surge in average import prices.
The average price per tonne of sulphur imported into China has risen dramatically, reaching nearly 3.5 times the level seen one year prior. For the first eight months of 2026, the average import price was up 168% compared to the same period in 2025. This sharp price increase is attributed mainly to disruptions in Middle Eastern supply chains, following the prolonged US-Israeli conflict involving Iran, which lasted nearly seven months.
Before the conflict, the Middle East accounted for about half of global sulphur exports, making China particularly vulnerable when shipping routes through the strategic Strait of Hormuz were interrupted. Sulphur is a critical raw material used in the production of sulphuric acid and phosphate fertilisers, both essential for China’s agricultural and chemical sectors.
Deon Ngee, head of sulphur pricing at Argus, a London-based commodity price reporting agency, indicated that import demand in China is expected to remain subdued in the near term. Buyers have been reluctant to accept prices above $1,000 per tonne, suggesting that purchases will stay low through September and October. However, if prices decrease later this year, inventory rebuilding may occur in November.
The price pressures have already led some fertiliser manufacturers to reduce production. Operating rates at phosphate fertiliser plants in several Chinese provinces have reportedly dropped by 12% compared to a year earlier. While this year's spring application season was less affected due to high port inventories stockpiled at the end of 2025, ongoing sulphur shortages and constrained stock levels could pose greater challenges for the 2027 season.
Domestically, sulphur prices in China surged from 4,050 yuan per tonne before the conflict to a record high of 11,750 yuan in June. By mid-September, prices had eased somewhat to 7,350 yuan but remained significantly above pre-conflict levels, highlighting persistent supply concerns in the market.