For the Quarter Ending December 2024
North America
In Q4 2024, Carbon Disulfide (CS2) prices in the North American market showed a declining trend, driven by a combination of easing supply constraints and stabilizing demand. Throughout the quarter, production outages and reduced operational capacities had initially caused significant supply tightness, pushing prices up.
However, as these disruptions started to ease and inventory levels improved, the market saw a price correction. Labor strikes at key ports and supply chain issues gradually alleviated, allowing for better inventory replenishment, which contributed to a reduction in prices by approximately 5%.
On the demand side, while steady consumption from downstream industries like cellophane and carbon tetrachloride-maintained baseline demand, the pace of growth in export markets, particularly in Mexico and Latin America, slowed down. This reduction in export demand, along with the lack of an immediate surge from industries like agrochemicals, tempered earlier price surges. The combination of improved supply and stable, yet unspectacular, demand dynamics led to a decline in Carbon Disulfide prices, closing the quarter on a more balanced market outlook.
Europe
In Q4 2024, Carbon Disulfide (CS2) prices in the Europe region, particularly in Germany, experienced a decline due to easing supply constraints and a slowdown in demand from the agrochemical sector. Early in the quarter, prices had risen significantly, influenced by higher Sulphur prices driven by crude oil increases, logistical disruptions at Hamburg port, and strong demand from the agricultural sector, particularly fertilizers. These factors, combined with robust export demand from Asia, pushed prices upward.
However, as the quarter progressed, the market saw a cooling of these bullish pressures. The peak agricultural season subsided, leading to a reduction in demand for fertilizers, which are a key driver for Carbon Disulfide consumption. Logistical challenges at Hamburg port also began to ease, allowing for smoother supply chains and the replenishment of stocks. While Sulphur prices remained elevated, the stabilization of crude oil prices and reduced export growth, particularly to Asia, helped temper further price hikes. As a result, the Carbon Disulfide market in Germany and Europe saw a 5% decline in prices by the end of Q4, reflecting a shift toward a more balanced supply-demand dynamic.
APAC
Carbon Disulfide prices in the APAC region exhibited a mixed trend during Q4 2024. The quarter witnessed an initial decline driven by a confluence of factors. High intra-Asia freight costs and supply chain disruptions, exacerbated by typhoons and port congestion, significantly impacted carbon disulfide imports. Furthermore, a weakening global oil demand outlook and geopolitical uncertainties created a pessimistic economic environment, dampening demand from key downstream sectors like textiles and rubber. This combination of factors led to a price decline in the early part of the quarter.
However, in the latter half of Q4 2024, prices witnessed a gradual recovery. This turnaround can be attributed to several factors. Firstly, a stabilization in global oil prices and a slight improvement in the overall economic outlook boosted demand from downstream industries. Secondly, efforts to alleviate supply chain bottlenecks, including improved port operations and increased domestic production, helped to ease supply constraints. These factors combined to drive a modest price increase in the latter part of the quarter.
Overall, the price trend for Carbon Disulfide in APAC during Q4 2024 was characterized by an initial decline followed by a gradual recovery. This mixed trend reflects the complex interplay of global economic conditions, supply chain dynamics, and shifting demand patterns within the region.
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.
