The US Liquid Sulphur Dioxide Market Remains Bullish Amid December Disruptions
The US Liquid Sulphur Dioxide Market Remains Bullish Amid December Disruptions

The US Liquid Sulphur Dioxide Market Remains Bullish Amid December Disruptions

  • 08-Jan-2025 5:15 PM
  • Journalist: Yage Kwon

In December 2024, the Liquid Sulphur Dioxide market in the US experienced an increase due to rising production costs, which were driven by a surge in feedstock Sulphur prices. This upward trend in production costs created a more expensive market for Liquid Sulphur Dioxide. Simultaneously, the demand for Liquid Sulphur Dioxide remained strong, leading to a rise in the number of transactions amid the supply chain disruptions resulting in bullish market sentiments in the US.

In the US, the Liquid Sulphur Dioxide market experienced a positive trend due to increased demand from the agrochemical sector. This demand for Liquid Sulphur Dioxide, coupled with rising production costs driven by higher Sulphur prices and the disrupted supply chain from Canada to the US, supported a bullish market outlook.

Meanwhile, the freight market remained generally quiet, with some tightness from the Canadian West Coast to inland Canada because of seasonal transportation and fewer outbound shipments from the US. During Thanksgiving week, there was significant congestion in the western regions as shippers rushed to send out their end-of-month loads before the holiday break, causing delays that continued into early December. Following this busy period, the market began to slow down as the year drew to a close.

Furthermore, concerns are mounting over a proposed 25% tariff on products imported from Canada to the United States, as announced by President-elect Trump. This potential tariff is causing significant unease, particularly regarding its impact on freight flow and the supply of drivers. Canada heavily relies on immigration to fill its driver workforce, and any disruption caused by the tariff could lead to shortages and increased costs in transportation. The uncertainty around this policy is adding to the challenges already faced by the freight market, amplifying worries about future trade and logistics between the two countries.

The national strike by the Canadian Union of Postal Workers has caused the USPS to stop accepting international mail to Canada, leading to significant disruptions in mail processing and delivery. Although the port strikes in Vancouver, Prince Rupert, and Montréal have been resolved, clearing the current backlog will take several weeks.

Additionally, seasonal freight movements and the holiday season's tight shipping schedules continue to affect shipping plans. Consequently, it is crucial to plan bookings and transit times accordingly to avoid further delays.

Despite a slowdown in new trades of Liquid Sulphur Dioxide, the market sentiment remained strong until the end of the year. The rail strike, coupled with harsh winter weather and falling temperatures across inland Canada, caused delays in the feedstock sulphur deliveries. These disruptions in the supply chain, combined with rising demand for Liquid Sulphur Dioxide, led to an upward trend in the Liquid Sulphur Dioxide market throughout December 2024.

As per ChemAnalyst, the Liquid Sulphur Dioxide market in the US is anticipated to witness a rise in the upcoming few weeks amid the ongoing supply chain disruptions. Therefore, the market players are expected to increase their ex-quotations of Liquid Sulphur Dioxide resulting in further bullishness in its trend.

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