Global sulphur spot trading remains subdued as tight supply continues to face weakening demand. While many buyers consider current offers too high to be workable, limited availability is preventing a sharper price decline. Spot prices have eased by around $200/t from the peak reached four weeks ago, but ongoing supply disruptions in the Middle East, Kazakhstan and Canada continue to keep prices at levels that are still uneconomic for many fertiliser producers, chemical consumers and nickel refiners. Buyers in the US, Brazil, India, Indonesia and China are generally targeting $800-900/t CFR as workable levels. Some producers are therefore cutting operating rates and relying on discounted domestic sulphur, while others are considering alternatives such as sulphuric acid or crushed lump sulphur.

Over the next 30-60 days, sulphur prices are expected to edge lower as high prices continue to weigh on demand. However, constrained supply and low buyer inventories should limit the downside. The uncertain security situation in the Middle East remains a key market driver, while any improvement in vessel movements could lower freight costs and put additional pressure on delivered prices. Even so, supply is likely to return only gradually, providing some support to prices despite the end of the fertiliser season in major markets.