The specific conditions of why the Titanic sank, other than hitting an iceberg, I'm not particuarly knowledgeable about. I know there was a design problem where the bulkheads did not go as high as originally designed to save costs while building. I imagine if the steel was brittle from low temperature, the impact with the iceberg would have been similar to hitting a window with a sledge hammer.
The problem of metal breaking at low temperatures is called the ductile to brittle transition temperature. It became quite apparent during the second world war when we were building steel hulled ships, sending them to Europe via the North Sea and they would break in half before arrival. It was discovered that the alloy being used became brittle at low temperatures. This phenomena began being researched in about 1940. these ships were cracking simply from the stress of waves.
Sulphur causes a condition called hot shortness in carbon steels. This is where the steel will crack when being hot worked. This phenomena became very apparent in the 1860's (thereabouts) with the development of the Bessemer steel process. It was pretty well known by the time of the Titanic...
I can't imagine we would have enough sulphur present, even with poor diesel fuel to have much to worry about. The contamination would affect other things long before affecting the base metal. I can't imagine the injectors are made from plain carbon steel, anyone know? It would take quite some time to difuse the sulphur out of the fuel and into the metals it contacts...
dj