KUWAIT CITY (Kuwait) — October 6, 2026 – The calmer market for commodities releases an unexpectedly strong message. Kuwait reduces its sulphur benchmark for October 2026, which suggests there is pressure on an industry that attracts much less attention than oil but is important for fertilisers, chemicals and agriculture.
The change, reported by ChemAnalyst on October 5, 2026, is taking place as demand in the downstream industry is dwindling and consumers are becoming increasingly cautious due to high freight costs and prices in China declining. The situation is making things hard for producers, as in the context of lowering benchmark prices, producers are becoming more and more burdened with high transportation expenses, which makes it problematic for consumers to benefit fully from lower prices.
The sulphur trade reveals intriguing insights about society. China, which is one of the largest importers of sulphur, has been experiencing a fall in the delivered price of sulphur due to the high cost of materials affecting all companies that deal with sulphur (such as the fertiliser industry).
Sulphur is much more important than its low status implies. Sulphuric acid is the most important form of sulphur, as it is vital for making chemicals and fertilisers. In fact, most of the sulphur produced globally is the result of oil refining or the processing of natural gas, not through extraction.
The energy industry strongly connects the supply of sulphur, creating a distinct market situation. Conversely, the demand side relies heavily on the fertiliser sector. A downturn in fertiliser production means that sulphur production will also be affected in a completely different production chain.
The reduction by Kuwait could lead buyers back into the spot market, especially on the condition that the margin in fertilisers rises. Nonetheless, on October 5, ChemAnalyst indicated that merely settling for lower benchmarks of export prices will not help as long as the costs of freight are elevated and buyers keep putting off their commitments.
For now, the price cut by Kuwait may mean more than a regular price adjustment and it may signal that sulphur supply is facing a much bigger problem – that is when prices go down, will the buyers enter the market or are they waiting for an even lower price?
