Sulfur is one of the key products of the oil, gas, and petrochemical industries, holding a special position in the global supply chain. Not only is it recognized as a refinery by‑product, but through conversion into industrial and agricultural derivatives, it can generate significant added value. The diversity of sulfur forms and grades—from elemental sulfur to processed products such as granules, pastilles, or chemical compounds—makes evaluating the profit margin of each type dependent on a thorough assessment of three critical factors: production cost, market demand, and ease of transportation.

This report, by examining market transactions and data, analyzes the profitability potential of different sulfur types and identifies optimal production pathways for companies operating in this field.

1. Sulfur and Production Profit Margins

Based on the above information and a comparative review of sulfur transactions in the market, the following conclusions have been reached:

Highest Profit Margin Potential:

• Sulfuric acid (especially high‑purity grades)
• Organic sulfur compounds (for specialized markets)
• Sulfur bentonite (as a value‑added agricultural product)

Moderate Profit Margin Potential:

• Elemental sulfur (depending on market conditions)
• Granular sulfur
• Liquid sulfur (if integrated with local industries)

Lower Profit Margin Potential:

• Sulfur dioxide (due to regulatory pressures)
• Sodium sulfite and sulfate (commodity products)
• Flake sulfur (insufficient market demand)

Key Factors Affecting Profitability

• Production Costs: Lump sulfur, due to its simple processing, has the lowest production costs, while granulated and pastilled sulfur require specialized equipment that increases expenses.
• Market Demand: Granular and pastilled sulfur enjoy stronger market demand thanks to their ease of handling and transport, making them more profitable.
• Transportation & Handling: Pastilled sulfur is the easiest to transport and handle, followed by granular sulfur. Lump and powdered sulfur pose greater logistical challenges.

2. Overall Profitability Assessment

For an oil refinery, producing granular sulfur is likely the most profitable option. Thanks to high market demand, ease of transportation, and uniform quality, granular sulfur enjoys strong market elasticity. Although its production requires higher initial investment in specialized equipment, the long‑term economic benefits outweigh the upfront costs.

In contrast, flake sulfur, while requiring minimal special equipment (only basic conveyor systems and a relatively low initial investment compared to granules), faces significant sales challenges. Without steady buyer demand in both domestic and export markets, its production is not economically viable.

Pastilled sulfur is also a strong candidate, offering a balanced mix of production cost efficiency and market demand.

3. Sulfur Producers in Iran

In the domestic trading ring of the Iran Mercantile Exchange (IME), sulfur is offered in three forms: pastilles, lump, and granules. According to official IME data (from the start of 1403 until September 10 of the current year), approximately 33% of domestic supplies of pastilled and lump sulfur have been traded, while 56% of granular sulfur offerings were sold.

Pastilled Sulfur Producers:

• Shahid Hashemi Nejad Gas Refinery (Khangiran) — the sole supplier of pastilled sulfur in the IME.

Lump Sulfur Producers:

• Shahid Hashemi Nejad Gas Refinery (Khangiran)
• Abadan Oil Refinery
• Isfahan Oil Refinery
• Shiraz Oil Refinery
• Ilam Gas Refinery

Granular Sulfur Producers:

• Isfahan Oil Refinery
• Imam Khomeini (Shazand) Oil Refinery
• Tabriz Oil Refinery
• Tehran Oil Refinery

4. Conclusion

Market analysis indicates that for a refinery or industrial complex, granular sulfur offers the highest long‑term economic returns. While its production demands greater capital investment in equipment, its consistent market demand, easy handling, and uniform quality make it the best balance between cost and revenue. Pastilled sulfur can also generate solid profitability in favorable market conditions.

Ultimately, product selection must consider cost structure, target market, and technical capacity to achieve the highest sustainable profit margin.