China’s Sulfur Imports Plunge Amid Weak Demand and Geopolitical Supply Constraints
According to the latest data from the General Administration of Customs, China imported 272,300 tonnes of sulfur in August 2026. This represents a month-on-month decline of 29.35% and a year-on-year drop of 65.03%. Cumulative imports for January through August 2026 totaled 2.9186 million tonnes, a decrease of 59.56% compared to the same period last year. For industry participants, this sharp contraction in August import figures came as no surprise. The domestic demand side currently lacks strong rigid demand, while sulfur prices remain at relatively high levels. The risk of price declines has suppressed trade liquidity, and geopolitical instability in the Middle East has constrained overseas supply. Against this backdrop, significant reductions in import volumes were inevitable.
On the demand side, July and August traditionally represent the off-season for domestic phosphate fertilizer production, naturally weakening end-users’ purchasing capacity for sulfur. Furthermore, targeted supply guarantees and export restrictions on phosphate fertilizers and sulfuric acid have exacerbated the perception of weak demand within the industry. Meanwhile, downstream sectors such as caprolactam and titanium dioxide producers are either purchasing strictly according to immediate needs, seeking alternative sources like smelter-grade acid, or adjusting their plant operating loads. The absence of large-scale restocking activities means that even with port inventories lower than the previous year, the sulfur market lacks substantive momentum.
International sulfur prices have remained firm, largely supported by tensions in the Middle East. However, the clear inversion between domestic spot prices and USD-denominated resource prices has become a significant barrier for domestic traders pursuing imported resources. Moreover, the overall weakness in demand has undermined merchants' confidence in future market trends. Their interest in tracking international forward cargo resources diminished significantly in July, directly leading to the notable reduction in cargo arrivals in August.
Although recent efforts by various parties aim to de-escalate tensions in the Middle East, disrupted navigation through key straits continues to hinder resource exports from the region. The impact of geopolitical conflicts is clearly reflected in China’s sulfur import data from January to August. Among trading partners, Oman was the largest source of Middle Eastern sulfur for China during this period; however, its export volume to China fell by 56.82% year-on-year. Exports from other well-known Middle Eastern suppliers, the United Arab Emirates and Saudi Arabia, declined by 55.59% and 53.56%, respectively, year-on-year. Qatar experienced the most severe drop: China imported approximately 541,500 tonnes from Qatar in the first eight months of last year, but this figure plummeted to just 22,200 tonnes this year. Kuwait and Iran saw year-on-year declines of 85.37% and 84.25%, respectively.
As September enters its final week, the gradual advancement of autumn fertilizer applications has not yet transformed the performance of the phosphate fertilizer market, and industry players remain skeptical about October prospects. The timing of restocking actions by long-term contract delivery parties remains uncertain. Given their recent wait-and-see attitude, these activities will likely be postponed until after the National Day holiday in October. It is also difficult to predict whether their release of volume will be synchronized or dispersed. However, it is certain that they will continue to seek bargaining power at opportune moments, similar to their approach in September, aiming to balance against the average market price prior to settlement deadlines. Based on current information regarding September’s port arrival schedules for imported cargoes, China’s sulfur import volume this month may set another record low, with both month-on-month and year-on-year declines expected to persist.
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