Texas, USA: The global Sulphur market is trending bullishly, driven by supply chain disruptions and rising demand from the downstream Agrochemical sector. Although the drop in Crude Oil prices has reduced Sulphur production costs, which might have softened the trend, the declining port inventories are helping to sustain the bullish momentum in the market.

In the U.S., the Sulphur market rose by 3.7%, reaching USD 140/MT (CFR-Texas) in the week ending November 1^st. This bullish trend is largely attributed to disruptions in the supply chain between Canada and the U.S., resulting from strikes at Canadian ports. Higher November settlement prices from Middle Eastern suppliers have led Canadian Sulphur suppliers to raise their offers. Meanwhile, in Vancouver, labor negotiations between the International Longshore and Warehouse Union (ILWU) Local 514 and the British Columbian Maritime Employers Association (BCMEA) are ongoing, following a Canadian Industrial Relations Board ruling that ILWU Local 514 engaged in bad-faith bargaining by authorizing a strike at DP World’s Vancouver terminal. As of October 31, neither side has issued a 72-hour strike or lockout notice. However, employers have stated that Vancouver port foremen will be locked out on Monday unless the proposed strike is called off.

In the domestic market of the USA, lower price expectations have surfaced for upcoming deals, although none have been confirmed yet, and trade activity remains limited as many players finalize their 2025 contracts, which are anticipated to be largely unchanged from 2024 levels. The domestic Sulphur market is also expected to remain steady, supported by consistent output from refineries, despite LyondellBassell’s recent closure of its 265,000 t/yr Houston, Texas refinery. Sulphur from this refinery typically goes to a specific buyer and rarely enters the export or domestic spot markets. On the West Coast, prices have increased, with a portion of cargo on a vessel bound for Southeast Asia falling within the new price range. Additionally, on October 28, Lithium Americas announced securing a $2.26 billion loan from the U.S. Department of Energy (DOE) to construct processing facilities. Once operational in 2027-2028, these facilities are expected to consume approximately 250,000 t/yr of elemental Sulphur for an on-site burner.

The German Sulphur market is also experiencing a bullish trend, however, it showed stability during the week ending November 1. Higher refinery throughput in Germany is putting pressure on oil product prices amid sluggish demand, although plant operations may soon slow as refining margins decrease. The recent completion of maintenance at Shell's 187,000 b/d Godorf plant within the Rhineland refinery in western Germany has further boosted refinery throughput. Total Energies is expected to finish maintenance on its 240,000 b/d Leuna refinery in southeastern Germany by the end of October, while BP is gradually resuming production at the Scholven unit of its 258,000 b/d Gelsenkirchen refinery following planned maintenance. BP announced on October 30 that production ramp-up has begun in Scholven after the plant's scheduled revision since mid-September.

In China, Sulphur prices, both delivered and at ports, rose this week, supported by firm international pricing and strong demand from downstream buyers. Market sentiment remains positive due to competitive pricing and high operating rates in the phosphate sector. Nationwide, MAP production operating rates rose by 2% to approximately 57%, while DAP operating rates slightly declined by 2% to 57%. Total Sulphur port inventories in China decreased by 78,000 tons to 2.309 million tons as of October 30. Notably, inventories at Yangtze River ports increased by 22,000 tons to 844,000 tons, whereas Dafeng port inventories dropped by 51,000 tons to 499,000 tons. As a result, the Sulphur market in China is currently trending bullish.

According to ChemAnalyst, the global Sulphur market is expected to maintain its bullish momentum, driven by an anticipated increase in demand for Sulphur from the downstream Agrochemical sector amid ongoing supply chain disruptions.