In addition to Oil and Gas, West Asia also exports a byproduct of the Oil and Gas refining, elemental Sulphur. Sulphur is used in several industries, mainly for processing raw materials like fertilisers, chemicals and ores. In 2025, West Asia supplied nearly half of the global sulphur demand, and accounted for over 60% of Asia’s imports and close to 50% of Africa’s imports.
The prices of Sulphur have been rising since last year owing to supplies from Russia halting. The supply squeeze caused the International sulphur prices to surge by over 200% in 2025. Sulphuric acid was widely used as an input in these industries as it was a low-value by-product from the oil and gas industry, and widely available at low costs. This made alternatives like pyrite acid or acid regeneration less competitive.
West Asia, until the Iran war, was the only region sustaining large-scale, stable sulphur exports. Exports from Kuwait and the UAE have declined, while Qatar has redirected shipments away from the Americas toward Europe and the Asia-Pacific. Sourcing from alternative suppliers is also proving to be a challenge due to the specialised tankers required for transporting sulphur, and the added freight costs will drive up the prices of end products.
On the demand side, the fertiliser sector still accounts for over half of global sulphur use, and will be the most affected due to the shortage. However, a demand from the new energy sector is growing. The rapid expansion of clean energy supply chains, particularly electric vehicle batteries, has driven a surge in demand for high-purity sulphuric acid used in lithium and nickel processing. This segment alone has grown by roughly 34% in 2026. This demand is ironic as a significant input for raw material processing in clean-tech is a byproduct of the hydrocarbon industry.
Constantly rising prices and supply disruptions might lead industries to exploring alternatives to sulphuric acid. One way to reduce dependence on external sources is Sulphuric Acid Regeneration (SAR), or simply recycling the spent acid. These systems typically take two to three years to build, making them ineffective as a response to immediate shortages. SAR was not a priority for companies until now as the plants are both time and capital intensive, and availability of low-cost sulphur did not incentivise companies to implement SAR. Substitutes such as sulphuric acid from pyrite, and smelting acid produced as a byproduct of metal smelting might also be reconsidered.