During January 2025, the Liquid Sulphur Dioxide market in Europe and the US exhibited bullish trends due to supply constraints and demand from the agrochemical sector. In Europe, high production costs and tight supply, driven by refinery disruptions in Germany, sustained the upward price momentum. The fire at Bayernoil’s Neustadt refinery, planned maintenance, and reduced sulphur output at the Miro refinery further strained the availability of Liquid Sulphur Dioxide. Similarly, in the US, winter storms and refinery shutdowns, including at Motiva and Total’s Port Arthur facilities, disrupted supply chains. Tight inventories, logistics issues, and refinery maintenance added to supply concerns resulting in the bullish market sentiments of Liquid Sulphur Dioxide.

In the European nation, the Liquid Sulphur Dioxide market showcased bullishness in its trend. The bullish market sentiments can be attributed to an incline in the demand for Liquid Sulphur Dioxide from the downstream agrochemical sector along with the high production cost. During January 2025, the Liquid Sulphur Dioxide market continued to witness high production costs as the feedstock Sulphur market in Germany continued to maintain stability at a higher end reflecting the supply-tightening in the market scenario.

The supply tightening stems from disruptions in the production of feedstock Sulphur as well as Liquid Sulphur Dioxide. A major factor was the fire at Bayernoil’s Neustadt refinery section in Germany on January 16. Although product loadings resumed the next day, sulphur shipments remained suspended and are unlikely to restart before late February. Bayernoil also planned maintenance for March, including a full shutdown of the Vohburg section and a partial shutdown of Neustadt, though the fire's impact on these plans remains uncertain. Meanwhile, the PCK refinery in Germany is taking measures to mitigate operational disruptions from an upcoming rail track closure near Berlin. Additionally, a crude distillation unit failure at the Miro refinery in Karlsruhe on January 21 led to a 30% drop in overall output and a 25% decline in sulphur production, expected to last at least four weeks. These supply-side constraints continued to drive bullish market sentiment for Liquid Sulphur Dioxide.

Similarly, the US Liquid Sulphur Dioxide market maintained its bullish trend due to persistent supply constraints and disruptions caused by winter storms. Refinery operations were affected, with Motiva and Total’s Port Arthur refineries experiencing shutdowns and power outages. Logistics were also impacted as temporary port closures in New Orleans, Houston, and Galveston delayed shipments. However, West Coast operations, including Chevron’s El Segundo refinery, remained unaffected by recent wildfires. Additionally, LyondellBasell’s Houston refinery plans to shut a crude unit permanently in February. Tight inventories, driven by planned refinery maintenance, further supported bullish sentiment. Despite the absence of the plantation season, strong demand from the agrochemical sector prompted active procurement amid ongoing supply challenges.

As reported by ChemAnalyst, the Liquid Sulphur Dioxide market in the US and Europe is expected to showcase a slight incline due to ongoing supply constraints. Furthermore, amid the upcoming plantation season in the European nations, the demand for Liquid Sulphur Dioxide might continue to witness a rise.