In the early November 2024, the Chinese market for Insoluble Sulphur showcased price rise with robust activity from the downstream automotive sector, particularly in the new energy vehicle (NEV) market, driving the dynamics. Leading NEV manufacturers like Li Auto, Aito, and GAC Aion reported remarkable year-on-year growth during previous month, underscoring the sector's resilience. However, the broader automotive market exhibited signs of saturation, tempering the overall momentum. 

Insoluble Sulphur production remained steady as manufacturing plants operated at stable rates to align with downstream demand. The Insoluble Sulphur supply situation showed improvement, bolstered by government stimulus initiatives that supported peak output levels not seen in recent months. However, foreign sales faced challenges, with declining export volumes. Domestic Insoluble Sulphur orders, on the other hand, stabilized, alleviating some pressure on suppliers and maintaining equilibrium in the market.  

Temporary equipment shutdowns in production facilities further reduced inventory levels, easing the risk of oversupply. This development fostered a sense of optimism among market participants, with some adopting bullish outlooks. However, downstream demand remained cautious, encouraging a wait-and-see approach that limited significant inventory accumulation.  The Insoluble Sulphur upstream sulphur market experienced slight fluctuations during October, with prices declining due to weaker demand and higher shipping expenses. These factors added complexity to the pricing environment for Insoluble Sulphur but did not disrupt the stability achieved in the market.  

The NEV segment proved to be a standout performer. Li Auto delivered over 50,000 vehicles in October; a 27.3% increase compared to the previous year. Similarly, Aito and GAC Aion reported impressive sales, with Aito’s high-end M9 model emerging as a market leader. Despite this growth, the traditional Insoluble Sulphur downstream automotive market faced stagnation, hinting at a saturated passenger car segment. Total sales for 2023 reached 25.1 million units, reflecting a plateau in overall demand. 

Looking ahead, the Insoluble Sulphur market may witness stronger price trends in the short term, buoyed by balanced supply-demand conditions. Fluctuations in upstream supply dynamics and downstream demand trends will continue to play a pivotal role in shaping market sentiment.   Despite challenges from broader automotive market saturation and upstream cost pressures, the Chinese market demonstrates resilience, positioning Insoluble Sulphur as a vital component for the automotive and manufacturing sectors.

According to the ChemAnalyst Database, the price of Insoluble Sulphur is anticipated to rise, driven by increasing demand from the automotive sector and escalating feedstock sulphur prices. Additionally, higher production costs are expected to contribute to this upward price trend. With the upcoming festive season, international market demand is projected to grow further. As a result, the automotive sector is operating at optimal capacity, leading to a stability in downstream inquiries.