Sulphur exports from the Middle East are likely to be delayed following the backlog of vessels building outside the strait of Hormuz since the 1 March US-Israel attack on Iran and the ensuing counter-attacks targeting US bases in the Middle East.
Sulphur loadings continue at most Middle East ports, but it is unclear if vessels can safely navigate the strait of Hormuz to move export cargoes out.
Some sulphur production facilities have also been affected by strikes, leading to likely production outages.
Ras Laffan facility hit by drones
An energy facility in Qatar's Ras Laffan industrial complex — home to a 77mn t/yr LNG export terminal — has been attacked by drones launched from Iran, Qatar's defence ministry said today at 10:36 GMT on social media site X.
It is unclear which energy facility was targeted. By far the largest operations at the site involve natural gas liquefaction, although QatarEnergy also operates LPG, ethane, sulphur and natural gas liquids production at the facility. Ras Laffan provides 10,000 t/d of liquid sulphur for the export market.
Ras Tanura refinery shut after drone strike
State-controlled Saudi Aramco has shut its 102,000 t/yr sulphur capacity Ras Tanura refinery on Saudi Arabia's east coast after it was struck by debris from intercepted Iranian drones early on Monday.
The refinery sustained "limited damage" after at 07:04 local time, state news agency Spa said.
Sulphur prices softened after a sustained period of increases. The Middle East fob spot price rose by 207pc from $173/t fob on a midpoint basis on 30 January 2025 to $531.50/t fob on 29 January 2026. Prices were beginning to soften as a result of affordability concerns, leading to demand destruction, and dropped by 7pc to $495/t fob on 26 February.
This trend is now expected to reverse, as close to half of global sulphur exports are potentially delayed by the conflict, and the duration of the attacks will be crucial in determining the sulphur price direction moving forward. Increased volatility is likely, with a short-term move up followed by a correction once flows are re-established.
Chinese domestic sulphur prices rose sharply today following the escalation of US-Iran conflict.
Domestic prices jumped [to 4,250 yuan/t ex-works following a concluded sale, equivalent to around $531/t cfr on an import parity basis, up by around 5pc from Yn4,045-4,055/t ex-works on 27 February. Argus last assessed granular sulphur cfr China at $512-515/t cfr on 27 February](https://direct.argusmedia.com/newsandanalysis/article/2794637)
QatarEnergy Marketing has postponed the announcement of its March Qatar Sulphur Price (QSP) to 4 March.
The supplier quoted recent geopolitical developments as the reason for the postponement from 1 March.
February's QSP was set at $520/t fob and a substantial downward correction was anticipated before the attacks.
