Hormoz and sulfur risks to food and metals
The closure crisis of the Strait of Hormuz has significantly impacted the global sulfur market, with export volumes from the Gulf decreasing by up to 98%. This led to a substantial increase in per-ton prices on the international markets. The material is primarily used in the production of fertilizers and agricultural chemicals, which contribute to roughly half of the world's food production, thereby threatening agricultural supply chains and raising production costs for farmers. Additionally, the soaring sulfur prices have affected the metals industry, especially in the extraction processes of copper and nickel, increasing the costs of producing these metals and constraining industries related to the transition to electric vehicles. Expectations indicate that the reduction in production and the sharp rise in prices will continue, with widespread impacts extending from the oil market to global food supplies and industrial materials.
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