U.S. Insoluble Sulphur Prices Hold Steady Amid Weak Downstream Support

Insoluble Sulphur prices in the U.S. remained stable this week, primarily driven by lower feedstock sulphur costs and high inventory levels. With ample stockpiles, sellers have been inclined to offer reduced Insoluble Sulphur prices to remain competitive. Analysts report that commercial crude oil inventories increased to their highest level since mid-August, though still below the five-year average for this season. This trend has contributed to a decline in upstream crude oil prices, which continues to influence Insoluble Sulphur pricing. 

Crude imports are expected to remain steady in the near term, with minimal impact from the Atlantic hurricane season on refinery operations. Routine refinery maintenance is helping maintain healthy refining margins, which indirectly supports stable Insoluble Sulphur pricing. 

Demand for Insoluble Sulphur from downstream industries, particularly the automotive sector, has grown modestly but not enough to significantly boost the Insoluble Sulphur market. Analysts maintain a bearish outlook for the coming weeks, with prices likely to remain weak due to low crude oil prices, declining feedstock costs, and high stock levels.

Factory inventories of Insoluble Sulphur are currently stable, and manufacturers have focused on maintaining steady shipments. There has been a slight uptick in downstream demand compared to the previous month, contributing to a more favorable trading environment. However, market trading for Insoluble Sulphur activity remains moderate, with buyers making only minimal purchases to meet short-term needs. 

In the automotive sector, the average transaction price (ATP) for new vehicles in the U.S. reached $48,397 in September 2024, showing a slight increase from August but a 0.4% decrease year-on-year, reflecting ongoing downward pressure on vehicle prices. Incentive spending rose for the third consecutive month, now at 7.3% of the ATP ($3,522), up from 7.2% in August and significantly higher than 4.8% a year ago. 

Although higher incentives have helped sustain vehicle sales, increased inventory levels—up to 2.84 million units at the start of September compared to 2.07 million units a year earlier—are driving downward pressure on prices. As a result, new vehicle prices have remained relatively stable throughout Q3, with September’s ATP only slightly above January's figure of $48,369. 

While the automotive market shows potential for future growth, uncertainties related to the national election and weather events may lead to cautious buying behavior in the months ahead. 

The Insoluble Sulphur market faces challenges stemming from weakened demand in the automotive sector, along with declining feedstock prices and sufficient supply levels. The outlook remains pessimistic, with little sign of significant price recovery in the near term. Stakeholders must navigate these conditions strategically, as the combination of low demand, ample supply, and volatile market factors continues to suppress growth opportunities in the market.