The Middle East conflict spreads to sulfur

According to Golden Ten Data on April 24, recent escalating conflicts in the Middle East have not only impacted oil and gas supplies but also disrupted key shipping routes. This has resulted in a tightening global sulfur supply and a rapid rise in prices. HSBC's report indicates that since mid-February this year, international sulfur prices have increased by approximately 40% to around $600 per ton. It is reported that about 80% of global sulfur is converted into sulfuric acid; approximately 60% of sulfuric acid is used in fertilizers, 19% in industry, and 14% in the chemical sector. Industry insiders warn that with restricted supply and the need to balance resource allocation, governments around the world are expected to prioritize food security by allocating sulfur resources to fertilizer production over the metals sector. This could lead to related producers reducing output or scheduling maintenance shutdowns in the coming months. Economists estimate that for every $100 increase per ton in sulfur prices, copper production operating costs increase by about 4%. This means that since mid-February, the cost of copper production has risen by approximately 8%.