Mixed Sulphur Market Trends in Middle East and North America

Doha, Qatar: The Sulphur market is currently exhibiting a mixed trend across different regions. In the Middle East, a bullish market sentiment prevails, driven by a surge in demand from overseas markets and elevated freight rates, contributing to higher prices and increased market activity. Conversely, the North American region is experiencing a more stable market trend, characterized by an equilibrium between supply and demand, leading to steady pricing and minimal fluctuations.

In the Middle Eastern region, the Sulphur market is experiencing an upward trend, with prices rising by 4.93% to USD 85/MT (FOB-Doha) during the week ending on 19th July 2024. This increase is primarily driven by heightened demand from downstream agrochemical enterprises, which has stimulated trading activities and led to higher production rates to meet the growing needs. The ongoing peak season is further boosting demand from overseas markets, especially with European importers expected to conclude their purchases early. Despite a reduction in Sulphur production costs due to lower upstream crude oil prices, the surge in consumption and the resultant depletion of inventory levels have driven prices higher in the Middle Eastern market.

In contrast, the North American Sulphur market is maintaining stability due to the effective management of demand by existing inventory levels. The moderate demand for Sulphur from downstream agrochemical enterprises, driven by the cyclical nature of the ongoing harvesting and plantation seasons, has kept Sulphur prices unchanged. This equilibrium is further supported by the sufficient availability of stocks to meet the needs of the agrochemical sector. Despite the peak in import volumes, there has been no significant congestion at destination hubs, as recent reports of port congestion are attributed to July 4th labour slowdowns and disruptions from Hurricane Beryl, neither of which have impacted the Sulphur market. The ample inventory and well-balanced supply and demand dynamics continue to uphold the stability of the Sulphur market in North America.

According to ChemAnalyst, the Sulphur market in the Middle East is anticipated to experience an upward trend due to an expected increase in shipping activities to overseas markets. The holiday season necessitates that goods be shipped by the end of September at the latest, driving up demand and consequently prices. In contrast, the Sulphur market in the United States is likely to continue exhibiting bearish sentiments owing to the upcoming harvesting season. The cyclical nature of agrochemical demand during this period is expected to reduce the urgency for additional Sulphur, thereby maintaining lower price levels and tempering market activity.