Iran Conflict Drives Sulfur Price Surge, Threatens Higher Fertilizer Costs for Farmers

The conflict in Iran is driving up prices for sulfur and phosphate fertilizers, which are essential inputs for farmers. Phosphate fertilizer products like DAP (Diammonium Phosphate) contain phosphorous nutrients and also contribute to nitrogen needs. The production of these fertilizers combines mined phosphate rock with sulfuric acid to produce phosphoric acid.

Since 2024, the price of sulfur has surged from less than $100 per ton to over $1,000 per ton in recent months due to logistical disruptions in the Middle East region and export restrictions by major producers like China and Russia. This sharp increase in sulfur prices is putting pressure on phosphate fertilizer prices.

The correlation between Corn Belt DAP and Vancouver sulfur prices has been strong at 0.70 since 2024, with both prices increasing significantly over the past year. Anhydrous ammonia prices have also risen to nearly $1,000 per ton in recent weeks, further contributing to higher phosphate fertilizer costs for farmers.