U.S. Insoluble Sulphur Market Maintains Stability Amid Rising Costs and Steady Demand
- 21-Dec-2024 1:30 AM
- Journalist: Gabreilla Figueroa
The U.S. Insoluble Sulphur market-maintained stability in early December 2024, with upward pricing trends driven by higher sulphur costs and strong demand from the automotive and rubber industries. Increased Insoluble Sulphur downstream tire production, supported by robust vehicle sales and a growing number of on-road vehicles, has bolstered demand for high-performance rubber components.
Manufacturers of Insoluble Sulphur have aligned production rates with downstream demand to maintain stability. Although, in the broader sense for Insoluble Sulphur, U.S. manufacturing sector remains in contraction, the rate of decline has slowed, signalling a gradual recovery. Workforce reductions and scaled-back purchasing activity reflect cautious production strategies, even as inflationary pressures have eased, with input costs rising at their slowest rate in nearly a year. Insoluble Sulphur Supply chain disruptions from hurricane-related delays have added challenges, but the overall Insoluble Sulphur market sentiment within the manufacturing sector shows signs of improvement.
The availability of new vehicles continues to improve, with November starting inventory levels exceeding those of the prior year by over 677,000 units. These trends have allowed manufacturers to offer more competitive pricing, further boosting consumer demand. This development is likely to lead to higher demand from the downstream sulphur market.
November 2024 saw robust growth in the U.S. automobile market (key consumer of Insoluble Sulphur), with vehicle sales increasing nearly 10% year-on-year. This surge was fuelled by the release of 2025 vehicle models, promotional campaigns, and the resumption of sales for previously recalled vehicles. Light trucks, including pickups and SUVs, dominated sales, comprising 82% of the market compared to 80% the previous year.
Battery electric vehicles (BEVs) continued to gain momentum, reflecting a consumer shift toward electric mobility. The retail market drove the bulk of sales growth, while fleet sales declined, highlighting strong consumer demand. Plus, the automobile production at its full swing in the US market likely caused higher demand for Insoluble Sulphur.
As per ChemAnalyst Database, looking ahead, the U.S. Insoluble Sulphur market is poised for sustained growth, supported by easing inflationary pressures, a recovering manufacturing sector, and a strong automotive industry. Demand for Insoluble Sulphur from the rubber and tire segments is expected to remain robust, driven by ongoing industrial activity and evolving consumer preferences. While traditional vehicle sales remain strong, electric vehicle (EV) sales are poised for a significant surge through year-end. Concerns over potential reductions in federal EV tax credits under a new administration have encouraged buyers to capitalize on current incentives. This tailwind is expected to drive robust EV and plug-in hybrid (PHEV) sales in November and December, contributing to a dynamic finish for the auto market in 2024.