In late December 2024, the U.S. insoluble sulphur market remained stable, with largely driven by low feedstock sulphur costs and strong demand from the rubber industry. This demand was fuelled by increased production activity and a robust consumption from the tyre industry. The rise in on-road vehicles has further boosted the need for high-performance tires, and domestic production capacity ensures a steady supply of raw materials like insoluble sulphur.

Manufacturing and supply dynamics saw insoluble sulphur plants maintaining stable operations to meet downstream demand. While the U.S. manufacturing sector showed signs of easing contraction, the presidential election continued to influence the decline in new orders, though at a slower pace. Production cuts were less pronounced, marking the smallest reduction in three months. Despite these improvements, insoluble sulphur manufacturers still reduced workforce numbers and scaled back purchasing activity. However, insoluble sulphur suppliers faced longer delivery times due to hurricane-related disruptions, although business sentiment showed cautious optimism.

In the U.S. Insoluble Sulphur Downstream automobile sector, vehicle sales surged by 9.8% year-over-year in November and early December 2024, reaching approximately 1.36 million units. This growth was driven by the introduction of 2025 models, the resumption of sales for recalled vehicles, and year-end promotions. Light trucks, including pickups and SUVs, led the sales increase, comprising 82% of total sales. Conversely, passenger car sales saw a 7.2% year-over-year decline. Notably, the share of battery electric vehicles (BEVs) in total sales rose to 8.7%, reflecting growing consumer interest in electric mobility. The retail segment saw a 7.4% year-over-year increase, while the fleet segment declined by 3.6%. Overall, the U.S. automobile market demonstrated strong growth, with higher sales volumes, a shift toward light trucks and electric vehicles, and a robust retail segment, indicating a positive outlook for the industry.

As of December, the U.S. Insoluble Sulphur downstream tire industry is experiencing growth, with the U.S. Tire Manufacturers Association (USTMA) forecasting total tire shipments to reach 338.9 million units, surpassing the 2021 record. This growth is driven by increased demand in the replacement tire market, particularly in passenger, light truck, and medium truck tires, while original equipment shipments face some declines. Sustainability is a key focus, with manufacturers investing in eco-friendly materials and recycling processes. However, the industry faces challenges such as plant closures, exemplified by Sumitomo Rubber's closure of its Tonawanda, New York facility, which will result in the loss of 1,550 jobs. Despite these challenges, the overall outlook remains positive, driven by technological advancements and sustainability efforts.

According to the ChemAnalyst Database, the prices of Insoluble sulphur are expected to decline due to a decrease in Insoluble sulphur feedstock prices and adequate Insoluble sulphur stocks. This situation is leading to lower pricing for stocks, coupled with reduced demand from the automotive industry.