Overall, the Sulphur market in the first quarter of 2022 rose exponentially and reached levels identical to the quotations in 2008. In the mid of the first quarter, the Russian forces started their special military operation over the soil of Ukrainian territory, uplifting the market gyration in the international Crude Oil market and laying out adequate cost support to the quotations of Sulphur across all regions. Whereas, the market sentiments that remained bullish since the last year due to uneven recovery of the COVID-19 pandemic has led to an upward spiral in the prices of many commodities coupled with the all-time high freight charges. Several market experts stated that the demand outlook was primarily focused on the fertilizers market, whereas the booming metal market further added the pressure. In response, the producers observed several hindrances to keep up with the rising demand from the downstream market.

The first three months of 2022 are a roller coaster ride for the Sulphur market, with the decision of the OPEC + alliance to gradually increase the production of Crude Oil despite the hindrances caused by the resurgence of the omicron variant of COVID-19. Bullish sentiments prevailed in the market till a week ahead of the Russian invasion of Ukraine. After that, the market shoots up drastically, backed by the higher Sulphur prices in the international market and against a backdrop of some immediate logistical issues for lifting Sulphur cargoes in the black sea region. In addition, the sanctions on Russia led to the lack of vessels and higher freight costs, problems in the financing trading activities, steep increment in the insurance premiums, and the reluctance from buyers to accept cargoes from the Russian ports. These developments have impacted the producer's quotations across the globe and the divergence of buyers towards the Middle eastern suppliers has levied the impact primarily in the Middle-eastern market.

As a ripple effect, the contract negotiations for Sulphur supplies during the second quarter of 2022 are likely to remain buoyed as the global market is consistently observing the gyration in the international market. Even though several market experts were anticipating the lack of availability in the upcoming quarter which is likely to impact the supplies of fertilizers in the nesxt quarter.