Hamburg (Germany): Sulphur prices in the global market are exhibiting fluctuating patterns. In the European and US markets, prices are on a downward trend due to subdued spot demand from the downstream agrochemical sector, coupled with high freight costs that have tightened margins over recent months. Conversely, the Middle Eastern markets are experiencing an upward trend in Sulphur prices, driven by increased demand from downstream enterprises, leading to higher consumption rates of the commodity.

In Germany, during the week ending June 14th, Sulphur market saw a 2.5% decline, settling at USD 78/MT (FOB-Hamburg). The Vohburg section of the Bayernoil refinery became accessible again on the morning of June 10th, following previous disruptions caused by rising Rhine water levels. This led to an easing in the supply chain since the end of last week, despite rising water levels along the Danube. Additionally, high inventory levels and subdued demand from the downstream agrochemical sector due to the ongoing harvesting season contributed to the price decline. This occurred despite disrupted supply chains and increased production costs stemming from higher crude oil prices, as adequate supplies were still available.

In the US market, the Sulphur prices declined by 2.77% during the week ending June 14, 2024. This decline was due to Sulphur production exceeding domestic demand as the consumption for phosphate fertilizers weakened during the summer off-season, potentially leading to higher Sulphur exports. Therefore, the Sulphur market declined due to reduced demand from the downstream agrochemical sector and sufficient inventory levels in storage units. Additionally, there was little progress in negotiations between Canadian rail operations and union employees. Representatives from the Teamsters Canada Rail Conference (TCRC) walked out of talks with Canadian National (CN) last week as they tried to prevent a work stoppage that could severely impact the North American supply chain and physical commodity markets.

However, in Qatar, the Sulphur market experienced an increase of 2.59%. This price hike can be attributed to a disrupted supply chain following a recent attack in the Red Sea. On June 12, 2024, a bulk cargo carrier was struck in the Southern Red Sea, causing severe flooding and damage to the engine room. The vessel has been abandoned and is drifting near its last reported position. Additionally, there was increased demand from the downstream agrochemical sector, coupled with insufficient inventory levels of Sulphur. Furthermore, the production cost of Sulphur rose due to higher crude oil prices. The spread between Sulphur and crude oil widened, indicating a bullish market scenario for Sulphur.

According to ChemAnalyst, the demand for Sulphur is expected to materialize, benefiting from the recent increase in DAP and MAP prices. This trend is likely to limit any potential decline in Sulphur prices. Consequently, it is anticipated that the Sulphur market might exhibit a bullish scenario in the upcoming weeks.