India imposes a comprehensive ban on sulfur exports; Shandong refineries collectively raise prices again

On July 16, 2026, India officially imposed a ban on sulfur exports, suspending all overseas sales of sulfur across all categories nationwide. Driven by expectations of shrinking overseas supply, the domestic sulfur spot market simultaneously saw an upward trend. Multiple petrochemical enterprises in Shandong collectively raised their ex-factory quoted prices on July 15, and port market prices also increased in tandem.

According to feedback from local refineries in India, relevant Indian authorities have officially issued a notice to completely ban all sulfur export businesses in order to prioritize guaranteeing the balance of domestic sulfur supply and demand.

The new regulations require local refineries and traders to cease the signing of all sulfur sales orders and the shipment of goods. All sulfur resources within the territory are to be uniformly incorporated into the domestic coordinated allocation system. As one of the important global sources of sulfur supply, the complete closure of India's export channels has directly intensified market concerns over tightening global sulfur supply, becoming a core driving factor for rising domestic prices.

Shandong Production Area: Multiple Enterprises Significantly Raise Ex-factory Prices; Some Units Under Maintenance with No Quotations

Based on sulfur ex-factory data from the Shandong region on July 15, all enterprises in the region capable of providing normal quotations raised their prices, with increases concentrated between 100-150 yuan/ton.

Dongming Petrochemical quoted solid sulfur at 9,500 yuan/ton, an increase of 100 yuan/ton from July 14; liquid sulfur was quoted at 9,250 yuan/ton, a single-day rise of 150 yuan/ton, marking the largest increase for liquid sulfur in the region this time.

Shangneng Petrochemical's liquid sulfur ex-factory price was 9,000 yuan/ton, a month-on-month increase of 100 yuan/ton;

Wantong Petrochemical quoted solid sulfur at 9,007 yuan/ton, an increase of 150 yuan/ton from the previous day.

Qicheng Petrochemical and Zhenghe Petrochemical simultaneously raised their liquid sulfur prices by 200 yuan/ton, with the latest ex-factory prices both reaching 9,200 yuan/ton.

Meanwhile, multiple enterprises in the Shandong region temporarily offered no spot quotations, and there is pressure on supply reduction at the market supply end.

Jincheng Petrochemical, Huaxing Petrochemical, and Shenchi Chemical temporarily offered no quotations; Xintai Petrochemical suspended quotations due to unit maintenance;

Huifeng Petrochemical has no external sales sources due to unit shutdowns; Sinopec Qingdao Refining & Chemical temporarily offered no quotations for both solid and liquid sulfur. The effective circulation of sources in the region has further tightened, providing support for spot prices.

Domestic Port Market: Prices Rise Steadily; Intense Game Between Upstream and Downstream

The port circulation market was also boosted by favorable overseas news. On July 15, the mainstream transaction range for solid sulfur at Zhenjiang Port was 9,200-9,400 yuan/ton. The low-to-mid end of the range increased by 100 yuan/ton from the previous trading day, while the overall range for the day showed no significant fluctuations, with prices remaining flat.

Market trading showed clear divergence. Bolstered by the dual positive news of supply from the Middle East and the Indian ban, holders' willingness to sell rose to 9,200-9,300 yuan/ton, with a strong sentiment to support prices.

Conversely, on the downstream procurement side, market acceptance of high-priced sources was weak, and sentiment to wait and see was heavy. Most buyers tended to use formula-based pricing models to lock in costs, and the pace of restocking for rigid demand slowed down.

Regarding regional distribution, sulfur sources at Fangcheng Port are mainly for factory return shipments. Although downstream terminal enterprises' own inventories continue to deplete, they are only restocking in small quantities from surrounding markets, and new supplementary sources at the port are limited. The current reference price for granular sulfur at Fangcheng Port is approximately 9,190 yuan/ton, and the price difference with Zhenjiang Port basically corresponds to the logistics freight between the two locations. The sulfur market price range at Dafeng Port maintained 9,180-9,380 yuan/ton, with no price fluctuations on the day.

Brief Market Outlook

In the short term, with the implementation of India's sulfur export ban combined with supply disruptions in the Middle East, expectations of shrinking global sulfur supply continue to ferment. Domestic spot supply in production areas is tight, and port holders have a strong willingness to support prices, so sulfur prices have the momentum for further increases. However, downstream terminal procurement sentiment remains cautious, and high-level transaction follow-up is insufficient, which may limit the room for significant increases. The market will continue to fluctuate following overseas supply news, domestic refinery operating rates, and the pace of rigid demand procurement from downstream sectors.