Hamburg, (Germany): During July 2024, prices of Carbon Disulphide have significantly increased across the European market, marking an exit from the downtrend observed over the past two months. Initial price announcements are marked by increasing freight costs and supply limitations due to disruptions in import shipments. Player assesses whether the freight rally can effectively lift prices from their recent lows amid flat upstream settlements and summer lull. However, at the same time prices of Carbon Disulphide have declined in the US market on the account of muted buying activities and ample supply. Moreover, low raw material costs have further supported the prices to follow a downward trend in the domestic market.

According to ChemAnalyst data, prices of Carbon Disulphide have witnessed an increment of USD 85/MT in the German market owing to supply constraints. Even though feedstock Sulphur prices have declined followed by bearish energy prices in the domestic market have still provided the market with low-cost support, manufacturers have failed to drop their offers due to supply disbalances. On the other side, the supply of Carbon Disulphide has tightened during July on the back of reduced import volumes from the Asian market, stemming from production issues in the region. Additionally, the price rally in container shipping markets has been going on continuously since May amid ongoing disruptions in supply chains. Hovering around the highest level of almost two years, in the pandemic era price territory. According to Freightos, throughout the month freight rates from China to West Europe increased by 18% to $8400 and 8% for South Europe to $7783 per 40ft container, keeping the import prices elevated. Moreover, curtailed domestic output rates have also weighed on the supply situation. As a result, prices of Carbon Disulphide FD Hamburg were settled at USD 915/MT during the same time period.

In addition, the demand for Carbon Disulphide from the downstream derivative cellophane, carbon tetrachloride as well as from the viscose and rayon industry has been steady as consumption from the key end-user packaging and textile industry was stable in the domestic market. However, a few market participants pointed to restocking activity ahead of the impending seasonal turnaround in the upstream Sulphur market as a key driver for the strengthened interest in making material purchases.

At the same time, prices of Carbon Disulphide have inched lower in the US market. The cost support from feedstock Sulphur has limited to Carbon Disulphide as its prices continued to drop which weighed down the prices of Carbon Disulphide. In addition, the domestic demand for Carbon Disulphide from the downstream industry, notably cellophane, carbon tetrachloride industry has remained subdued as consumption from the end-user sector was slower than expected, leading to a downward shift in the price realization of Carbon Disulphide. Moreover, export demand for Carbon Disulphide has also been tepid amid poor downstream affordability and macroeconomic headwinds. In the meantime, Hurricane Beryl led to a series of precautionary shutdowns at petrochemical plants in Texas, US, earlier this month. Nonetheless, the impact was limited on the Carbon Disulphide market as the restart process kicked off for several manufacturing companies and Beryl slowed shortly after. Overall, the availability of Carbon Disulphide was enough amid a decline in new orders which promoted the manufacturers to decrease their offers. Thus, prices of Carbon Disulphide FOB Houston were settled at USD 760/MT with a month-on-month decrement of USD 20/MT during July 2024.

Looking ahead, ChemAnalyst expects prices of Carbon Disulphide is anticipated to rise across the US and European markets in the hope of a rise in feedstock Sulphur prices. Furthermore, the demand from the downstream derivative industry may strengthen post-summer amid restocking needs. Indeed, the supply of Carbon Disulphide might remain tight amid the low domestic operating rates and reduced import offers from the Asian market.