The ongoing disruption in the Middle East has increased uncertainty around global sulphur supply and shipping logistics. Recent Houthi attacks on Red Sea shipping targets have heightened concerns over the security of key trade routes. Any further escalation could disrupt sulphur supply flows while increasing freight risk premiums, insurance costs and diversion expenses, adding pressure on Asian raw material procurement.

Indian DAP prices have already moved higher, reflecting the impact of growing supply-side concerns on the phosphate market. As sulphur is a key cost component for phosphoric acid production, tighter availability and higher logistics costs could further support production costs and push phosphate prices higher.

Market participants are closely monitoring developments in the Middle East, the Red Sea and Strait of Hormuz, as continued supply uncertainty could create further upward pressure on phosphoric acid and phosphate fertiliser prices.