For the Quarter Ending September 2024
North America
In Q3 2024, the North American carbon disulphide market experienced mixed trends, with prices initially declining in July before showing signs of recovery in August. In July, prices decreased due to limited cost support from feedstock sulphur and sluggish domestic demand from downstream sectors like cellophane and carbon tetrachloride. The consumption from key end-user industries was slower than anticipated, which contributed to bearish market sentiment. Export demand also weakened amid macroeconomic challenges, leading to a wait-and-see approach among market participants regarding inventory replenishment.
By August, the market shifted to a bullish sentiment as carbon disulphide prices strengthened due to tight supplies resulting from cracker outages and reduced production rates at several facilities. The cost support from sulphur became more pronounced, facilitating price increases despite volatility in upstream crude oil futures. Demand from the downstream sector remained moderate, with stable consumption from packaging and textiles, while export demand, particularly from Mexico and Latin America, saw a notable uptick. The prices of Carbon disulfide FOB Houston assessed in September 2024 were around USD 780/MT.
Supply dynamics continued to be a concern, with manufacturers facing challenges from plant shutdowns linked to Hurricane Beryl and ongoing negotiations between labor unions and maritime alliances threatening future supply chain stability. The U.S. Manufacturing Purchasing Managers' Index indicated a continued contraction, reflecting ongoing weaknesses in the manufacturing sector. Overall, the carbon disulphide market in North America faced challenges but showed resilience amidst shifting demand and supply conditions.
APAC
In Q3 2024, the Asia-Pacific (APAC) carbon disulphide market faced significant pressures, with prices remaining flat across key regions like China due to a combination of oversupply and weak downstream demand. Despite rising sulfur costs, the impact on carbon disulphide prices was minimal as sluggish demand from sectors such as cellophane and carbon tetrachloride persisted. China’s economy grappled with low domestic consumption and external trade challenges, which hindered industrial momentum and dampened growth expectations. Even with economic support measures, including interest rate cuts, the effectiveness was limited.
Production rates across APAC were adjusted downward to balance with tepid demand, with Chinese manufacturing PMI figures indicating ongoing contraction. Disruptions from Typhoon Gaemi further impacted supply chains, creating moderate congestion at ports and lengthening transit times. China’s industrial output grew below expectations, reflecting seasonal and environmental challenges. These conditions contributed to a cautious market atmosphere, where stock replenishment remained limited. The prices of Carbon disulfide FOB Shanghai assessed in September 2024 were around USD 620/MT
Demand dynamics were similarly low, with domestic and export markets reflecting conservative buying behavior. Limited transactions and reduced spot market activities indicated the broader market's hesitance, while stable but low purchasing rates from overseas further emphasized stagnant demand. APAC’s carbon disulphide market outlook remains bearish, with few signs of short-term recovery.
Europe
In Q3 2024, Europe’s carbon disulphide market showed significant tightening, driven by rising freight costs, constrained imports, and production challenges, particularly in Germany. After a steady period, prices began increasing in July as curtailed import volumes from Asia compounded already limited domestic supply. Shipping rates from Asia to Europe have soared, with 40-foot container rates surpassing USD 8,000, adding pressure on supply chains and deterring imports. Additionally, manufacturing slowdowns across Germany, combined with supply chain disruptions stemming from regional conflicts and heightened port congestion, further constrained carbon disulphide availability.
Demand remained moderately strong from key industries, including cellophane, carbon tetrachloride, and textiles, as the viscose and rayon markets maintained a steady pull on carbon disulphide. While consumer sentiment was somewhat dampened by rising inflation and cautious economic outlooks, need-based purchases sustained overall demand, particularly as some players looked to preemptively restock amid concerns over sulfur market disruptions. Despite a weak economic environment, downstream interest remained stable to slightly bullish. The prices of Carbon disulfide FD Hamburg assessed in September 2024 were around USD 970/MT.
European inflation rates and labor tensions also influenced market conditions. Inflation in Germany, the EU’s largest economy, rose to 2.5% in July, raising concerns over consumer spending and impacting European Central Bank policy discussions. Labor unrest in European ports contributed to congestion, extending vessel waiting times and leading to sporadic supply interruptions. Overall, Q3 2024 saw European carbon disulphide prices firming, with limited relief expected in the near term.
For the Quarter Ending June 2024
North America
In the North- American market Carbon disulphide prices have witnessed a mixed trend during the second quarter of 2024. During April and May, Carbon disulphide prices have inched higher in the US market. The feedstock Sulphur prices have increased which resulted in the low manufacturing cost of Carbon disulphide, leading to an upward shift in the price realization of Carbon disulphide in the domestic market. On the demand front, the inquiries from the downstream packaging, and agrochemical industry were relatively moderate in the domestic market.
Most market transactions were mainly based on a need-on-demand basis. In the meantime, demand from the overseas market has improved amidst replenishment activity which promoted the manufacturers to raise their prices in order to gain profit margins. Meanwhile, the US Federal Reserve has maintained its key rate at 5.3%, the highest in 23 years, to address persistently high inflation, which peaked at 9.1% in June 2022. Despite some moderation, inflation remains elevated, and there has been limited progress toward the central bank's goal. Furthermore, due to low production material availability was observed on the lower end which further uplifted the prices of Carbon disulphide.
However, after experiencing a bullish rally in the last two months, Carbon disulphide prices have declined during June 2024 supported by weak derivative demand. The fragile buying sentiment surrounding the market was further dampened by sharp volatility in crude oil futures, coupled with a monthly loss in feedstock prices. Additionally, the sufficient supply kept surpassing downstream demand despite notably lower production rates amid the ongoing market uncertainty. The market player reported that the cost support from feedstock Sulphur was limited to Carbon disulphide as its prices persistently decreased in the domestic market, leading to bearish market sentiment of Carbon disulphide among the manufacturers. Thus, prices of Carbon disulphide FOB Texas were settled at USD 780/MT with a month-on-month decrement of 1.3% during June 2024.
Asia- Pacific
Carbon disulphide prices showcased a fluctuation across the Asian market during the second quarter of 2024. During the initial and mid of Q2 of 2024, Carbon disulphide prices rose in the Chinese market in the wake of tight supply and improved demand dynamics. However, cost support from feedstock Sulphur was limited on Carbondisulphide as its price settled on the lower end. Nonetheless, it was insufficient to drive the price realization of Carbondisulphide to a lower end in the domestic market. In addition, the domestic demand for Carbondisulphide from the downstream agrochemical and packaging industry has improved albeit at a smaller pace which encouraged the manufacturers to revise their prices. At the same time, demand from the overseas market has also been observed on the higher end in an effort to restock the inventories. As per the market source, China’s exports in May grew at their fastest pace in more than a year despite trade tensions, exports jumped 7.6% in May, compared with the May 2023. Furthermore, operating rates have remained low and as a result, material availability was limited to meet the downstream demand. Many manufacturing firms also shut down for maintenance during the May Day holiday, leading to decreased production of Carbon disulphide.
However, towards the end of Q2 of 2024, Carbon disulphide has significantly declined in the domestic market amid low trading activity, with buyers reluctant to commit to transactions. Despite the strong energy prices, the raw material Sulphur prices have decreased, which resulted in the low production cost of Carbon disulphide in the domestic market, keeping the prices downward in the domestic market. In addition, the demand for Carbon disulphide from the downstream agrochemical, and packaging industry has remained consistently subdued, with market players gearing for the summer downturn amid seasonal holidays. The spot market transactions were also muted, with buyers remaining on the sideline, which weighed down the prices of Carbon disulphide. Thus, prices of Carbon disulphide FOB Shanghai were settled at USD 680/MT with a monthly declination of USD 45/MT during June 2024.
Europe
Carbon disulphide prices have continued to decline across the German market during the second quarter of 2024. The cost support from feedstock Sulphur was limited to Carbon disulphide as its prices settled on the lower end, contributing to a downward shift in the price realization of Carbon disulphide in the domestic market. Although, upstream crude oil prices have showcased fluctuation throughout the quarter. Furthermore, underlying weakness in the domestic Carbon disulphide market continued to call for limited demand from the downstream agrochemical and packaging industry. Converters still preferred to buy on a need basis, while buying interest was further declined amid macroeconomic headwinds in the domestic market. Overall, subdued downstream demand, contributing a bearish market sentiments of Carbon disulphide among the manufacturers. In the broader economic context, German inflation fell more than expected in June, resuming its downward trend after two consecutive months of increases, and leaving the door open for another rate cut by the European Central Bank in September. Furthermore, decline in inflation would not affect Carbon disulphide demand within the downstream industry in the short term. Despite the low operating rates, the material availability was abundant to meet the existing downstream demand which weighed down the prices of Carbon disulphide in the domestic market. Therefore, prices of Carbon disulphide FD Hamburg were settled at USD 830/MT with a monthly decrement of 5.7% during June 2024.
For the Quarter Ending March 2024
North America
Carbon Disulphide prices in the North American market displayed varied trends in the first quarter of 2024. In January, prices surged in the US market due to reduced operating rates during the holiday season and sluggish demand, leading to limited product availability and prompting manufacturers to raise prices to maintain profit margins. Despite this, demand from downstream industries like packaging, agrochemicals, and perfumes remained stable, supported by consistent consumption from end-users.
However, disruptions in shipping routes and severe weather conditions caused delays in supply and increased transportation costs. However, in February, after a bullish rally the previous month, Carbon Disulphide prices declined in the US market. Soft demand from downstream industries, particularly agrochemicals, dyes, and perfumes, coupled with decreased feedstock Sulphur prices, led to reduced production costs, leading the bearish market sentiments among manufacturers.
Despite improved domestic production rates and sufficient material availability, prices continued to trend downward. Although, March witnessed a reversal in the price trend as Carbon Disulphide prices strengthened in the US market. Rallying crude oil futures and production disruptions drove price hikes, fuelled by increased feedstock Sulphur prices and strong crude oil prices throughout the month. This resulted in higher production costs for Carbon Disulphide in the domestic market, contributing the upward shift in the price realizations of Carbon disulphide.
Asia- Pacific
Prices of Carbon disulphide have witnessed a mixed trend in the Asia- Pacific region during the first quarter of 2024. During the first half of 2024, Carbon disulphide prices have inched lower in the Chinese market. The cost support from feedstock Sulphur was limited on Carbon disulphide prices as its prices settled on the lower end in the given time frame. These supported the prices to follow a downward trend in the domestic market. In addition, demand for Carbon disulphide from the downstream agrochemical, perfume, and packaging industries has remained average with a limited instance of the new order reported by market players weighing down the prices of Carbon disulphide in the domestic market. Meanwhile, inquiries from overseas markets have also softened amid macroeconomic headwinds which further refrain the manufacturers from raising their exporting prices. Furthermore, the Lunar New Year combined with a weakness in downstream businesses has prompted more factories to shut down earlier to prepare for family union visits, preventing a meaningful improvement in demand. In addition, China’s second-largest economy was contending with weak consumer demand and slowing prices. To address this, the central bank aims to maintain flexible and precise policies to boost domestic demand while ensuring price stability, amid signs of a patchy economic recovery and rising deflationary risks. On the supply side, the material availability was sufficient which further deteriorated the prices of Carbon disulphide in the domestic market. However, in the second half of 2024. Carbon disulphide prices have recovered as feedstock Sulphur prices have increased. On the other hand, the Ukrainian drone attack targeted Russia’s largest refinery at Rosneft, causing a 10% decrease in capacity. Geopolitical tensions in the Middle East, coupled with the decision by OPEC+ to cut oil supply, have led to continuous hikes in oil prices. In addition, demand from the downstream agrochemical and perfume industry was moderate in the domestic market.
Europe
Carbon Disulphide prices in the German market saw continuous increases throughout the first quarter of 2024 due to surging crude oil futures and production disruptions. Supply chain challenges stemming from the Red Sea crisis exacerbated the bullish trend. Reports from market players indicated rising feedstock Sulphur prices, resulting in elevated production costs for Carbon Disulphide and supporting its upward trajectory in the domestic market. Additionally, a Ukrainian drone attack on Russia’s largest refinery at Rosneft led to a 10% capacity decrease, while geopolitical tensions in the Middle East, along with OPEC+ decisions to cut oil supply, sustained oil price hikes. These high crude oil prices further elevated the overall manufacturing expenses of Carbon Disulphide, reinforcing bullish sentiments among manufacturers. In addition, demand from downstream sectors such as agrochemicals and perfumes remained moderate, with market transactions primarily driven by immediate needs. Moreover, the German manufacturing sector had been experiencing reduced activity since Q3 2023, as many manufacturers scaled back operations due to persistent inflationary pressures and steady demand. This reduction in manufacturing activity heightened supply-side pressure, contributing to the continuous increase in Carbon Disulphide prices throughout the quarter.
For the Quarter Ending December 2023
North America
Carbon disulphide prices in the US market displayed mixed sentiments during the final quarter of 2023. In the early part of Q4 2023, Carbon disulphide prices rose domestically. The increase in feedstock Sulphur prices led to a higher production cost of Carbon disulphide, fostering bullish market sentiments among manufacturers. On the upstream side, Natural gas prices remained positive throughout the month, with a reported 16.1% increase in total US natural gas consumption due to cooler weather and a positive shift in demand patterns across the country.
However, towards the end of Q4 2023, Carbon disulphide prices decreased in the US market in November 2023. The insufficient cost pressure from feedstock Sulphur, as its prices settled at the lower end, led to bearish market sentiments among Carbon disulphide manufacturers. Additionally, toward the year's end, manufacturers hesitated to procure additional volumes of Carbon disulphide. In response to the observed market scenario, some Carbon disulphide companies initiated scheduled maintenance during an off-season to alleviate the pressure from a rapid uptick in inventory, thereby reducing Carbon disulphide production.
On the demand front, inquiries from the downstream agrochemical, dyes, and rubber industry remained tepid, with limited instances of new orders reported in the given time frame, supporting a downtrend in prices in the domestic market. Simultaneously, demand from the overseas market was observed on the lower side, reflecting weak buying appetite among consumers. Furthermore, in November, U.S. inflation experienced another decrease, primarily due to reduced gas prices, further mitigating the impact of consumer price rises in the country. Additionally, anticipating successive reductions in inflation, the US Federal Reserve chose to keep its key interest rate unchanged at 5.25%-5.50% for the third consecutive time.’
Asia-Pacific
Carbon disulphide prices have sustained a downward trajectory in the Chinese market throughout the final quarter of 2023. The Carbon disulphide market in China is encountering challenges characterized by an increase in supply, declining costs, and notably, persistently sluggish demand. Market players have reported a decrease in feedstock Sulphur prices over the quarter due to weak procurements from end-user industries, resulting in a reduced manufacturing cost of Carbon disulphide in the domestic market. This decline in production costs has prompted manufacturers to maintain low prices across the market. On the demand front, inquiries from downstream agrochemical, dyes, and rubber industries have been slower than expected, as consumption from the end-user sector has not yet improved in the domestic market. This has led to bearish market sentiments for Carbon disulphide among manufacturers. Moreover, the tepid demand continues to exert pressure on the seller's side, with buyers either making limited purchases when necessary or adopting a wait-and-see perspective in anticipation of potential further declines. The downturn in downstream demand could be attributed to underperforming end businesses and economic uncertainties globally. Simultaneously, demand from the overseas market has also remained subdued, as buyers refrain from actively stocking up on the material, further contributing to the decline in Carbon disulphide prices. On the supply side, amidst the destocking season towards the year-end, manufacturers have been prompted to keep prices at low levels within the domestic market.
Europe
Carbon disulphide prices witnessed a decline in the German market throughout the fourth quarter of 2024. The decrease in both raw material prices and subdued demand exerted downward pressure on domestic Carbon disulphide prices. The prices of feedstock Sulphur decreased, contributing to the overall reduction in the manufacturing cost of Carbon disulphide within the domestic market. Simultaneously, the energy-intensive industry sector in Germany displayed minimal signs of recovery, remaining largely stagnant throughout the year. The relatively mild onset of winter negatively impacted gas demand across the European market, leading to a decline in demand and abundant availability of TTF Natural Gas. Consequently, this caused prices to plummet, thereby reducing the production costs of Carbon disulphide within the domestic market. Moreover, demand for Carbon disulphide from the downstream agrochemical, dyes and rubber industry remained tepid, with market players reporting limited instances of new orders. This contributed to bearish market sentiments among manufacturers. Tighter financing conditions and weakening domestic demand were critical factors contributing to the slowdown in business activity for Carbon disulphide in recent quarters. Persistent inflationary pressures also adversely affected the purchasing power of consumers, resulting in reduced purchases from downstream industries. Manufacturing firms operated at reduced rates as demand from the downstream industry had not fully recovered in the domestic market. Additionally, the German manufacturing Purchasing Manager Index figures indicated continued deterioration, reflecting slow economic data and lower-than-usual consumption in all downstream segments. Despite these challenges, material availability remained sufficient to meet overall downstream demand.
For the Quarter Ending September 2023
North America
Prices of Carbon disulphide have witnessed mixed sentiments in the North- American market during the third quarter of 2023. During the first half of Q3, prices of Carbon disulphide have inched lower in the US market. The cost pressure from feedstock Sulphur was limited as its prices settled on the lower end. Furthermore, the demand for Carbon disulphide from the downstream agrochemical and textile industry has remained lackluster, which weighed down the prices of Carbon disulphide in the domestic market. The lackluster demand has kept exerting pressure on the seller's side as buyers either made limited purchases when needed or stayed in a wait-and-see perspective in the projection of additional decline. The worsening in downstream demand could be attributed to underperforming end businesses and economic uncertainties across the globe. The material availability was sufficient as new orders were dropped, which further led to a price decline in the domestic market. However, towards the second half of Q3, prices of Carbon disulphide have gained an upward momentum on account of high feedstock Sulphur prices. On the input energy front, Natural gas prices have been observed on a bullish note which further impacted the overall manufacturing cost of Carbon disulphide in the domestic market. In addition, demand from the downstream agrochemical dyes has improved, albeit at a smaller pace. As a result, prices of Carbon disulphide FOB Houston were settled at USD 780/MT during September 2023.
Asia- Pacific
Carbon disulphide prices have witnessed an oscillating trend in the Asian market during the third quarter of 2023. During the initial of Q3, prices of Carbon disulphide have inched lower in the Chinese market. The feedstock Sulphur prices have decreased, which in turn leads to the low production cost of Carbon disulphide in the domestic market. The demand from the downstream agrochemical and textile industry has remained subdued in the domestic market. The market transactions were relatively low as the enthusiasm of terminal firm to enter the market were not strong; thus, as a result, prices of Carbon disulphide were operated at a low level in the domestic market. At the same time, inquiries from overseas markets have also been observed on the lighter side amid weak global economic recovery. However, during the mid and end of Q3, Carbon disulphide prices have gained an upward trend on account of improved demand from the downstream industry. The cost support from feedstock Sulphur was sufficient as its prices settled on the higher end in the domestic market. The manufacturing firms were operating at normal rates as demand from the downstream industry improved. Furthermore, China's manufacturing purchasing manager index increased from 49.7 in August to 50.2 in September, indicating an expansion in industrial and manufacturing activity. Therefore, as a result, prices of Carbon disulphide FOB Shanghai were settled at USD 910/MT during September 2023.
Europe
Prices of Carbon disulphide have witnessed a bullish trend in the German market throughout the third quarter of 2023. The feedstock Sulphur prices have continued to rise, resulting in the high production cost of Carbon disulphide in the domestic market. On the input energy front, Natural gas prices have been observed on the higher side, which further impacted the overall production cost of Carbon disulphide in the domestic market. However, the German market has faced persistent, firm inflationary pressure and high-interest rates, which eroded the purchasing power of end-users. Meanwhile, demand Carbon disulphide from the downstream agrochemical, the textile industry has remained subdued, with limited instances of new orders; it was insufficient to drive the price realizations of Carbon disulphide at the lower end. The ifo Business Climate Index dropped from 90.4 in August to 89.6 in September. The manufacturing firms were operating at low rates as demand from the downstream industry had not fully recovered in the domestic market. In addition, the German manufacturing purchasing manager index remained in the contraction zone, indicating a deterioration in the industrial and manufacturing activity. The level of inventories was sufficient to cater to overall downstream demand. Overall, high production cost has boosted the prices of Carbon disulphide in the domestic market. Therefore, prices of Carbon disulphide FD Hamburg were settled at USD 970/MT during September 2023.
For the Quarter Ending June 2023
North America
Carbon disulphide prices have remained volatile in the US market throughout the second quarter of 2023 backed by limited demand and sufficient inventories. The impact of the most aggressive monetary policy tightening in decades, and the expected slowdown of the US economy all argue in favour of weak economic activity, slowing down the market growth of several commodities including Carbon di Sulphide. The demand from the downstream fertilizers, and packaging industries has remained tepid in the domestic market and as a result, a drop has been observed in the price realizations of Carbon disulphide in the domestic market. In addition, the aftermath of the collapse of two significant banks in the US market during late Q1 of 2023 has had repercussions on the performance of manufacturing industries. However, the Core inflation has consistently exceeded the targeted levels set by the US Federal Reserve and has been gradually decreasing at a slower pace, resulting in strained trade activities. In addition, the freight charges have declined, and material availability remained sufficient which further supported the Carbon disulphide to follow the downtrend in the domestic market.
Asia- Pacific
Carbon disulphide prices have inched lower in Asia's biggest economy, China throughout the second quarter of 2023. The manufacturers were reluctant to destock the current stocks to start fresh production in the domestic market. As a result, the market players have opted the successive reduction to stimulate the shipments. The cost pressure from the feedstock Sulphur was insufficient as its prices progressed in a downward trend as reported by market participants. After growing at a faster-than-expected pace in Q1 after the ease of COVID restrictions, the world's second-biggest economy has lost steam in April-June amid steepening deflation, and weak demand from the overseas market. On the demand front, the inquiries from the downstream packaging, and fertilizers remained average, resulting in declining consumption rates in the domestic market. The downstream procurement was relatively average. In addition, the availability of finished stock of Carbon disulphide was abundant in the domestic market, weighing down the prices of Carbon disulphide in the domestic market.
Europe
Carbon disulphide prices have decreased significantly in the German market during the second quarter of 2023. Global economic uncertainties such as ragging inflationary pressure and persistent rise in interest rates have impacted the consumer pocket. The demand from the downstream fertilizers, and packaging industries remained limited which weighed down the prices of Carbon disulphide in the domestic market. Although demand from the rubber (tire) as well as from the textile industry has remained moderate in the domestic market it didn’t lead to an increased price realization of Carbon disulphide. In addition, the cost pressure from feedstock was also inadequate in the given time frame. Meanwhile, the steady imports from the Asian market have resulted in sufficient inventories in the German ports. The freight charges from Asia to Europe declined by nearly 9% which further led to price drops in the domestic market. Furthermore, the German purchasing manager’s index was fall from 44.5 in April to 43.2 in May, indicating a contraction in new orders, therefore the positive development of Carbon disulphide has subdued, and prices operated at a low level.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, Carbon disulphide prices in the USA market have continued to decline due to slow purchasing sentiment and strong supplies. Demand from the dyes and rubber industries has been weak, and there were limited inquiries for new orders from end-users, resulting in a bearish pricing trend in the domestic market. The manufacturing industry in the US market has also been underperforming, contributing to the sluggishness in the market. Operating rates have remained stable, leading to high inventory levels in the USA. Additionally, market participants reported, the recent banking crisis in the USA has had a negative impact on the market growth of various commodities, including Carbon disulphide.
Asia-Pacific
During the first quarter of 2023, Carbon disulphide prices have decreased in China due to slow purchasing sentiment in the market. Operating rates in China have remained moderate due to weak consumption from downstream industries. Additionally, the prices of feedstock Sulphur have declined, resulting in low production costs of Carbon disulphide in the domestic market. Demand from downstream industries such as rubber, dyes, and pesticides has slowed down both domestically and overseas, and market participants have reported limited new orders from end-users. However, the surplus inventories of the product have led manufacturers to revise their negative price quotations in the domestic market.
Europe
Prices of Carbon disulphide have witnessed a downward trend in the European market during the first quarter of 2023 amid gloomy buying sentiments and ample supplies in the region. In addition, domestic production remained under check while the carbon disulphide imports from Asia improved on European shores as the freight charges worsened sharply. In addition, feedstock Sulphur prices have also remained on the lower end, which resulted in the low production cost of Carbon disulphide in the region. In addition, due to high-interest rates and inflation, the demand from the downstream rubber, dyes, along with pesticides has remained weak. There were no new orders from end-use industries, so the product ended up in stock. In addition, the market perceived a wait-and-see attitude.
For the Quarter Ending December 2022
North America
Carbon Disulphide prices have showcased fluctuation in the USA market during the fourth quarter of 2022. During the initial and mid of Q4, carbon Disulphide. Demand from the downstream textile, solvent, and allied industries have stable to firm in the domestic market. Moreover, the demand-supply gap increased along with production costs. The US rail workers went on a strike demanding higher wages and a better working environment, thus limiting the material available in the market. However, the worse was averted owing to smooth intervention by US Congress. Although, towards the end of the quarter, Carbon Disulphide prices gained a downtrend due to subdued demand from both the domestic and international markets, while the ample inventory level forced the manufacturer to drop their price quotation. Meanwhile, cheap imports from Asia further weighed down the prices of Carbon Disulphide in the regional market.
Asia- Pacific
Prices of Carbon Disulphide have witnessed mixed sentiment in China during the fourth quarter of 2022. In the first half of Q4, Carbon Disulphide prices improved in the Chinese market owing to the firm production cost. Demand from the textile, solvent, and other industries has been bullish, while the limited material availability in the market has led to price increases in the domestic market. Meanwhile, demand from the overseas market has also risen. In addition, under the influence of persistent lockdown implementation along with zero covid policy, manufacturers have started facing a labor shortage coupled with supply chain disruption, which majorly affects logistical constraints. However, during the second half of Q4, Carbon Disulphide prices gained downward momentum owing to weak demand and sufficient material availability in the market. Feedstock prices remained stable during this quarter, which softened the domestic production cost of Carbon Disulphide. In addition, manufacturing activity contracted in December as Covid-19 outbreaks continued to weigh on both output and demand.
Europe
Carbon Disulphide showed a mixed trend in the European market during the fourth quarter of 2022. In the first month, Carbon Disulphide prices increased due to volatile energy prices and high inflationary pressure. Demand from the downstream industries has remained stable to weak in the regional market. Although, during the last two months, Carbon Disulphide prices dropped due to steady inflows of cheap imports from Asia. In addition, demand from the downstream textile, solvent, and other competitive industries have remained subdued amid sluggish buying sentiment in the region and the slow growth of the key industries. Meanwhile, energy prices stabilized during this quarter, resulting in stable production costs of the Carbon disulphide. On the other hand, supply chain dynamics have improved in the European continent with no major port congestions. Thus, facilitating the availability of imports and inter-European transportation, respectively.
