Why has sulfur price surged over 600% in 22 months, and what does it mean for China's chemical and new energy supply chains?

Why has sulfur price surged over 600% in 22 months, and what does it mean for China's chemical and new energy supply chains?
Sulfur prices have rocketed from under 1,000 yuan/ton two years ago to over 7,400 yuan/ton spot, driven by a perfect storm: Middle East supply disruptions via the Strait of Hormuz, Russia's shift from exporter to net importer, and surging downstream demand from lithium iron phosphate batteries, nickel hydrometallurgy in Indonesia, and titanium dioxide. China's import dependence stands at 47%, with 56% of imports from Gulf states. Unlike many countries, China has a diversified acid production base—sulfur-burning, smelter gas, and pyrite-based—so shortages translate more into cost inflation than physical supply cuts. The biggest pain point is phosphate fertilizer producers without captive mines or acid plants, who face cash-cost breakeven breaches, while integrated players with low-cost sulfur recovery, like Sinopec's Puguang gas field at 200 yuan/ton production cost, capture windfall margins.