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China Reportedly to Halt Sulfuric Acid Exports in May, Deepening Fertilizer Supply Strains

The move would further tighten inputs for phosphate fertilizers already constrained by the Strait of Hormuz disruption.

Overview

  • China plans to stop sulfuric acid exports starting in May to conserve domestic stocks for planting season, Bloomberg reported, and officials in Beijing have not publicly confirmed the policy.
  • Sulfuric acid is a core ingredient used to make phosphate fertilizers like DAP and MAP, and China led global exports by value in 2024 at about $349 million, according to trade data cited by the articles.
  • Fertilizer prices have risen across all eight major products in recent weeks, with urea posting the largest gains, DTN market data show.
  • Tight supply followed Iran’s closure of the Strait of Hormuz, which slowed Persian Gulf shipments through a corridor that handles roughly 45% of global sulfur flows.
  • In the United States, Agriculture Secretary Brooke Rollins said about 80% of farmers locked in fertilizer last fall, which limits near-term exposure to the latest price surge.