Market and product

The global chemical and industrial materials markets recorded several notable developments over the past week, with sulphur prices reaching a new all-time high, major investments accelerating in fertilizer and battery material infrastructure, and new agricultural support policies in Europe reshaping fertilizer demand.

US Sulphur Prices Reach a Historic High

The third-quarter 2026 contract price for molten sulphur delivered to Tampa, Florida, was settled at US$705 per long ton (a long ton equals approximately 1,016 kilograms), up US$50 from the previous quarter and marking the highest contract price on record.

The surge has been driven primarily by reduced sulphur exports from the Middle East, pushing spot export prices from the US Gulf Coast to US$1,100-1,150 per metric ton FOB (Free on Board), meaning the seller's responsibility ends once the cargo is loaded onto the vessel at the port of shipment.

During the second quarter, US sulphur exports reached several non-traditional destinations, including North Africa and East Africa, helping offset tightening global supplies.

Despite record prices, market participants remain cautious. Elevated phosphate fertilizer prices have weakened downstream demand, prompting fertilizer producers in many regions to offer discounts to sustain production. Some US sulphur producers are also facing growing storage concerns due to limited solid sulphur export infrastructure.

Algeria Speeds Up Integrated Phosphate Project

Algeria has announced plans to double its workforce and deploy additional equipment to accelerate the expansion of Annaba phosphate port, with completion targeted for the first quarter of 2027.

The project includes construction of a deep-water berth capable of handling vessels of up to 80,000 tonnes, significantly strengthening Algeria's phosphate rock and fertilizer export capacity.

The port expansion forms part of the country's Integrated Phosphate Project (IPP), jointly developed by state-owned energy company Sonatrach and mining company Sonarem. The broader project also includes a phosphoric acid, sulphuric acid and ammonia complex in Souk Ahras.

Once operational in early 2027, the phosphoric acid facility is expected to produce around 900,000 tonnes of P₂O₅ annually, supported by approximately 3 million tonnes of phosphate rock each year. Algeria aims to strengthen its position as a major phosphate supplier to international markets, including Indonesia.

French Fertilizer Subsidies Drive Nitrogen Demand

Demand for nitrogen fertilizers in France surged immediately after the government introduced a new subsidy programme.

Farmers purchasing straight nitrogen fertilizers between 1 June and 30 September 2026 will receive subsidies of at least €50 per tonne, rising to €70 per tonne for farms where fertilizer accounts for more than 10% of operating costs.

The announcement quickly pushed urea prices from around €460 to €495 per tonne, while demand for urea ammonium nitrate (UAN) solutions also rose sharply. Several suppliers temporarily withdrew offers to reassess market conditions.

Market analysts believe the subsidy programme could shift fertilizer consumption away from NPK products and ammonium sulphate, which are not covered under the scheme.

EGA Restarts Alumina Production in the UAE

Emirates Global Aluminium (EGA) has resumed operations at its Al Taweelah alumina refinery in Abu Dhabi after production was suspended for more than three months following attacks on the Khalifa Economic Zone industrial complex in late March.

The refinery is expected to restore approximately 50% of its production capacity within days and aims to return to full operational capability by the end of 2026.

Al Taweelah produced 2.4 million tonnes of alumina in 2025, supplying nearly half of EGA's raw material requirements. The company is also gradually restarting aluminium reduction cells to restore primary aluminium production.

Market Outlook

Recent developments indicate that the global chemical industry continues to be shaped by geopolitical tensions, government agricultural policies and the accelerating energy transition. In the near term, key feedstocks such as sulphur are expected to remain expensive due to tight supply, while sustained investments in phosphate, lithium and alumina production highlight growing efforts to secure strategic supply chains for fertilizers, batteries and critical industrial materials.