Summary:

On 10 June 2026, several Tunisian media outlets reported that production at the Tunisian Chemical Group’s (GCT) Mdhilla 1 industrial units has been suspended since May due to a shortage of sulfur, a critical raw material used in the production of sulfuric acid and phosphoric acid.

According to the reports, the supply disruption is primarily linked to ongoing tensions affecting trade flows through the Strait of Hormuz, as well as the failure of some suppliers to fulfill their contractual commitments. The combined factors reportedly led to the depletion of sulfur stocks and the complete suspension of operations at the site. 

Outlook: 

While the suspension comes at a critical juncture for Tunisia’s phosphate sector, which is still attempting to regain market share and stabilize export performance after prolonged disruptions, the halt at Mdhilla 1 underscores how the recovery process remains highly exposed to both structural supply vulnerabilities and external shocks affecting the availability of essential industrial inputs.

The reported link to tensions around the Strait of Hormuz is particularly notable given the waterway’s importance for global sulfur exports from Gulf producers. As geopolitical uncertainty continues to affect maritime trade routes, Tunisia’s phosphate industry may remain vulnerable to external supply constraints, highlighting the extent to which the country’s strategic export sectors are increasingly influenced by developments beyond its immediate region.

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