Rotterdam (The Netherlands): Since the beginning of Q4 2023, the carbon disulphide market in the European region has been under pressure due to weak global fundamentals and subdued buying activities in the region. The lack of upstream support has further exacerbated the market conditions for carbon disulphide, with industry experts predicting continued softness in prices in the coming months.

According to ChemAnalyst, carbon disulphide prices saw a decrease of USD 25/MT in November 2023. Limited cost pressure from feedstock sulphur, which settled at the lower end during this period, contributed to bearish market sentiments among manufacturers. On the energy front, declining natural gas prices, driven by healthy inventories and strong flows of liquefied natural gas (LNG), have alleviated manufacturing costs for various commodities, including carbon disulphide.

Despite the forecast of colder weather increasing gas demand for heating, the latest data from Gas Infrastructure Europe indicates that European gas storage inventories remain 97.4% full, a record for this time of year.

Market reports suggest a lack of demand for carbon disulphide from downstream industries such as agrochemicals, rubber, and packaging due to a year-end lull. Spot market transactions and the entry of terminal firms were average, supporting a downward trend in carbon disulphide prices in the domestic market.

Major carbon disulphide producer Arkema reported a 17.2% decline in sales (€2.3 billion) compared to Q3 2022, with volumes down by 6.6% year-on-year, reflecting generally slow demand similar to previous quarters.

Despite operating at reduced rates to balance supply and demand, manufacturers face poor margins due to falling energy and feedstock prices and an uncertain demand outlook. As a result, carbon disulphide prices in FD Hamburg settled at USD 925/MT during the same period.

Looking ahead to December 2023, market players anticipate a continuation of the downward price trend as demand from downstream industries is unlikely to recover amidst firm inflationary pressure and high-interest rates. Major central banks are not expected to lower interest rates quickly next year, maintaining tight monetary policies to address inflation concerns. Manufacturers are projected to destock inventories at low prices amid a weak demand outlook.

While feedstock sulphur prices may increase and natural gas prices remain high, it may not be sufficient to drive carbon disulphide prices higher in the domestic market. However, players are cautiously optimistic about Q1 2024, with expectations easing stock pressures on manufacturers due to earlier depleting activities and potential restocking in the new year.