For the Quarter Ending September 2024
North America
The third quarter of 2024 has been marked by a significant uptrend in Insoluble Sulphur prices in North America, with the USA experiencing the most notable price changes. This increase can be attributed to various factors influencing the market dynamics.
Firstly, ongoing supply chain disruptions, such as labor strikes and natural disasters, have constrained the availability of Insoluble Sulphur, leading to a tightening of supply. Secondly, heightened demand from the downstream automobile sector. Additionally, rising production costs, driven by increased crude oil prices and operational challenges, have added upward pressure on Insoluble Sulphur prices.
In the USA specifically, the Insoluble Sulphur market has shown consistent price growth, with a from the same quarter last year. The quarter-on-quarter change highlights the continuous upward trajectory. Moreover, the substantial variance between the first and second half of the quarter underscores the significant price fluctuations within the period. As of the latest quarter ending, Insoluble Sulphur prices stand, reflecting a sustained positive pricing environment characterized by increasing trends and bullish sentiments.
APAC
Throughout Q3 2024, the Insoluble Sulphur market in the APAC region witnessed a notable uptrend in prices, driven by various factors influencing market dynamics. The quarter was characterized by increasing prices, primarily attributed to rising production costs stemming from a surge in Crude Oil prices. Geopolitical tensions and supply disruptions in key oil-producing regions added uncertainty, further pushing Crude Oil prices upwards. This, in turn, impacted the production costs of Insoluble Sulphur, contributing to the overall bullish sentiment in the market. China's passenger vehicle sales increased by 4.3% in September 2024 compared to the previous year, ending a five-month decline, thanks to a government subsidy aimed at encouraging trade-ins as part of a broader stimulus initiative. The growth was driven entirely by battery-powered vehicles, which saw a boost after subsidies for consumers were doubled in July. Meanwhile, sales of gasoline-powered cars, once dominated by foreign brands, continued to decline. In total, 2.13 million vehicles were sold in September, up from 2.04 million a year earlier. For the first nine months of 2024, sales rose by 1.9% compared to the same period in 2023, according to data from the China Passenger Car Association (CPCA). The market in Singapore exhibited seasonality trends, with fluctuations driven by factors such as supply-demand imbalances and inventory levels. Despite the negative price change from the previous quarter, the quarter-on-quarter comparison showed an increase, highlighting the volatility and dynamics within the market. The quarter-ending price in Singapore reflected a consistent increasing sentiment, with the overall pricing environment remaining positive.
Europe
In Q3 2024, the Insoluble Sulphur market in Europe experienced a strong uptrend in prices, marked by a considerable increase in market value. This growth was largely driven by limited supply due to maintenance rounds and unexpected outages at Western European refineries, tightening availability and pushing prices higher. The widening price spread between Insoluble Sulphur and crude oil further underscored bullish market sentiments. Car sales saw a significant drop in the third quarter of 2024, with only 10,805 cars registered, marking a 14% decline compared to the previous quarter. This downward trend is not limited to Luxembourg, as new car sales across the European Union fell by 18.3% in August, reaching their lowest level in three years. Major markets like Germany, France, and Italy experienced double-digit declines, and sales of electric vehicles also decreased. However, in contrast to the broader European trend, the share of electric cars in Luxembourg continues to rise, albeit slowly. Germany saw notable price movements, with a dip from the prior quarter but an overall quarterly rise, indicating a positive price trend. Despite a year-over-year decrease, the quarter-ending price of Insoluble Sulphur in Germany capped a period of rising prices and a positive pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the Insoluble Sulphur market in North America experienced a predominantly negative pricing environment. This decline was driven by several key factors. Stable production levels amidst muted demand from key downstream industries, particularly automotive, contributed to downward price pressures. Additionally, lower feedstock Sulphur prices, a result of declining crude oil costs, exacerbated the decline in Insoluble Sulphur prices. The weak economic recovery across global markets further dampened demand, leading to high inventory levels and prompting sellers to offload stocks at reduced rates.
In the USA, the most significant market within North America, the trend was particularly pronounced. The automotive sector, a major consumer of Insoluble Sulphur, showed mixed demand dynamics, with a notable shift towards need-based purchasing due to affordability challenges and elevated financing costs. Seasonal factors also played a role, with the end of the heating season in Europe contributing to lower Natural Gas prices and subsequently reducing production costs for Insoluble Sulphur.
The overall sentiment in the USA was negative, with a marked -3% decline from the previous quarter and a further -2% reduction between the first and second halves of Q2. No major plant shutdowns or disruptions were reported during this period. The quarter concluded with Insoluble Sulphur prices at USD 1668/MT DEL Texas, reflecting the overarching theme of decreasing prices driven by high inventories, subdued demand, and lower feedstock costs.
APAC
The prices of insoluble Sulphur have shown an increasing market trends this quarter due to firm demand from the downstream automobile industry and rise in the prices of feedstock Sulphur. The second half of quarter of 2024 has been challenging for Insoluble Sulphur in the APAC region, with a consistent decline in prices driven by multiple factors. The primary contributors to the bearish trend included weak cost support from feedstock Sulphur, ample inventory levels, and subdued demand from downstream industries, particularly the automotive sector. Additionally, production costs were kept in check by low coal prices, further contributing to declining market prices. Several plant shutdowns, including the notable closure of facilities in the Shandong region, exacerbated the supply scenario, leading to an oversupply and further downward pressure on prices.
In China, the most significant price fluctuations were observed, with Insoluble Sulphur prices reflecting a marked decrease due to similar factors of ample supply and weak demand. Despite active downstream procurement and robust market trading, the overall sentiment remained negative. Seasonal factors and government policies aimed at boosting consumer confidence did little to offset the declining trend.
As the quarter concluded, the price of Insoluble Sulphur FOB Qingdao stood at USD 958/MT. The overall pricing environment in China was decidedly negative, reflecting broader regional trends of declining costs and oversupply amidst tepid demand.”
Europe
In Q2 2024, Insoluble Sulphur prices in Germany showed an upward trend in April due to low inventory levels in the market. However, demand from the downstream automobile sector remained weak. Despite this, supply constraints and rising upstream crude oil prices contributed to higher inventory costs. The Insoluble Sulphur market in Germany experienced bearish sentiments starting in April 2024, but stabilized at the beginning of July 2024. Although upstream crude oil prices rose by 1.43%, increasing Insoluble Sulphur production costs, commodity prices remained steady. Moderate demand from downstream agrochemical enterprises, supported by the agricultural sector's cyclical nature, contributed to market equilibrium.
Additionally, the European market has been dealing with high inflation, which has led to a decline in consumer confidence and a downward trend in the Insoluble Sulphur market. To address this and boost consumer confidence, the European Central Bank (ECB) implemented its first rate cut of 0.25% since 2019. This monetary policy adjustment helped halt the market's decline, contributing to the stability observed since mid-June. The combined effects of moderate demand, cyclical agricultural activities, and the ECB's intervention played crucial roles in balancing the Insoluble Sulphur market amidst rising production costs and broader economic challenges.
In terms of economic indicators, Germany's Manufacturing PMI declined in June compared to the previous month, remaining below the threshold level. This decline highlighted the weak performance of the manufacturing sector.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American region witnessed a significant decrease in Insoluble Sulphur prices. This decline can be attributed to several factors that influenced the market. Weak cost support from feedstock Sulphur played a crucial role in driving down prices. Additionally, the market was affected by elevated inventory levels, which further subdued the growth of the Insoluble Sulphur market. This led to inventories being offered at discounted rates, contributing to the overall decrease in prices.
The USA experienced the maximum price changes in the North American region. Overall trends in the USA market indicated a decreasing sentiment. The quarter saw a negative correlation in price changes, with a recorded percentage change of -4% from the previous quarter in 2024. Furthermore, there was a 3% decrease in prices between the first and second half of the quarter.
The quarter-ending price for Insoluble Sulphur in the USA market was reported at USD 1690/MT Ex-Mumbai. This reflects the overall downward trend in prices throughout the quarter. The pricing environment for Insoluble Sulphur in the North American region, specifically the USA market, has been pessimistic in Q1 2024.
APAC
In Q1 2024, the APAC region witnessed a consistent decrease in the prices of Insoluble Sulphur. This decline can be attributed to various factors that influenced market prices. Weak cost support from feedstock Sulphur and decreased demand from the downstream industry were the main drivers behind the decreasing prices. Additionally, destocking activities and reduced demand from the international market further contributed to the downward trend.
China experienced the maximum price changes in the region. The overall trend for Insoluble Sulphur prices in China was negative, reflecting a 26% decrease compared to the same quarter last year. The decrease from the previous quarter in 2024 was recorded at 3%, while the price change between the first and second half of the quarter was -4%.
The latest quarter-ending price for Insoluble Sulphur in China was reported at USD 965 per metric ton FOB Qingdao. This price reflects the overall decreasing sentiment in the market.
Overall, the pricing environment for Insoluble Sulphur in the APAC region during Q1 2024 was characterized by a negative trend, with prices consistently declining. Factors such as weak cost support, reduced demand, and destocking activities influenced market prices, leading to a decrease in Insoluble Sulphur prices.
Europe
This Quarter, the European market reported the prices of Insoluble Sulphur, while the Sulphur market experienced tightening supply chains and increased demand from downstream agrochemical enterprises towards the end of the first quarter of 2024. However, disruptions in the supply chain occurred in the German market due to ongoing Farmer’s Protests and a Nationwide Rail Strike at the beginning of March 2024. These events have exacerbated the challenges faced by Europe's largest economy, already struggling with surging energy costs and rising borrowing costs amidst the Russia-Ukraine conflict. Despite positive trends in industrial production, construction, and foreign trade earlier in the year, a noticeable economic recovery has yet to materialize due to continued weak domestic demand, high financing costs, and subdued sentiment among private households and companies. Moreover, the German manufacturing PMI showed a slight increase in March 2024 compared to February 2024. However, the reading still indicates a significant deterioration in manufacturing conditions, the most significant in five months, marked by faster declines in employment and stocks of purchases, as well as a steep improvement in supplier delivery times. Although new orders and output experienced slower decreases, the rate of decline in average purchasing costs eased for the fourth consecutive month to the weakest level since March of the previous year. Conversely, average factory gate charges fell at a faster rate, reflecting strong competition for new work in the manufacturing sector.
For the Quarter Ending December 2023
North America
The North American region faced a challenging quarter for Insoluble Sulphur in Q4 of 2023. The market was primarily impacted by the high level of inventories, leading to sluggish market growth. Moreover, demand from the downstream tire industry remained subdued, leading to a negative market sentiment.
The procurement of new orders from downstream industries was only on demand basis, leading to limited demand from the international market. The USA, being the primary market for Insoluble Sulphur. The heavy destocking market activity and year-end lower demand from the downstream industry led to a decrease in the prices of Insoluble Sulphur in the USA. The production costs also increased due to rising coal prices, adding to the downward pressure on prices.
The quarter saw moderate to high supply, and the market situation remained stable. The latest/quarter ending price of Insoluble Sulphur in DEL Texas was USD 1712/MT in the USA. Despite the challenging quarter, the sustained demand from downstream markets, particularly the rubber industry, is expected to continue to exert pressure on overall demand in the upcoming period.
APAC
The APAC region's Insoluble Sulphur market remained stable in Q4 2023, with adequate inventory levels in the market. Heavy destocking market activity led to lower prices for Insoluble Sulphur. The manufacturing sector's contraction in the Purchasing Managers' Index (PMI) for November in Malaysia and India resulted in low to moderate demand. China witnessed a decline in prices due to a decrease in demand from the downstream industry and elevated inventory levels in the market. Moreover, the increasing prices of feedstock sulphur in China led to higher import prices of Insoluble Sulphur. The Chinese automotive industry's positive developments and increased international investment contributed to improved downstream procurement and smooth shipping processes. The quarter witnessed no plant shutdowns. In China, the trend, seasonality, and correlation price percentage in Q4 2023 were -3%, with a -21% percentage change from the last year's same quarter and a -8% percentage change from the previous quarter. The price percentage comparison of the first and second half of the quarter in China was -4%. The latest price of Insoluble Sulphur FOB Qingdao in China in Q4 2023 was USD 982/MT.
Europe
Insoluble sulphur prices in Europe experienced a mixed and volatile Q4 2023, ultimately ending flat to slightly lower compared to Q3. The main drivers included weakening demand from key user industries like rubber and tire manufacturing, leading to downward pressure on prices. Ample supply, with sufficient inventory levels and stable production capacity, contributed to overall price stability. Despite fluctuating seaborne oil prices, a key factor, remaining in a moderate range limited significant cost-driven price changes. Global economic uncertainty and potential recessionary fears added to market volatility. Regional variations were observed, with Western & Central Europe seeing generally stable to slightly higher prices due to higher transportation costs and concentrated demand. Eastern Europe, in contrast, had generally lower to flat prices due to closer proximity to production facilities and less concentrated demand. The impact on downstream industries resulted in stable or slightly lower prices, benefiting users like rubber and tire manufacturers, particularly those facing cost pressures. For insoluble sulphur producers, mixed price movements likely influenced profitability, contingent on production costs and hedging strategies.
For the Quarter Ending September 2023
North America
In the US market, the prices of insoluble Sulphur initially declined at the beginning of Q3, and in the latter half of the quarter, they stabilized, resulting in reduced downstream inquiries. This market shift is attributed to diminished demand from downstream sectors, particularly the automotive industry, and a lack of robust cost support from the feedstock Sulphur. Additionally, there is reduced demand from international markets, with a notable decrease in interest from Brazil. Procurement of new orders from downstream industries has become contingent on immediate demand requirements. The persistently high interest rate, standing at 5.5%, continues to exert a dampening effect on the purchasing power of consumers in downstream industries. Despite these challenges, the stability in insoluble Sulphur prices becomes particularly significant in the context of a Purchasing Managers' Index (PMI) value of 49.80 and 47.90, signalling a contraction in the manufacturing sector. Looking ahead, there is an expectation of price increases soon, driven by rising demand from the international market and increased inquiries from downstream sectors, especially the automobile industry. This anticipated shift indicates a potential positive trajectory for insoluble Sulphur prices in the upcoming period.
Asia-pacific
Throughout Q3, the prices of insoluble Sulphur have experienced a decline, and this recent drop can be attributed to a combination of factors. Firstly, there has been insufficient cost support from feedstock Sulphur, placing downward pressure on prices. Additionally, lacklustre demand in the international market has contributed to a sluggish growth trajectory for the insoluble Sulphur market. Compounding these challenges, China's post-pandemic economic recovery is encountering a slowdown, marked by reduced demand for the nation's exports and sluggish domestic consumption. This broader economic context in China is casting a shadow of pessimism over the insoluble Sulphur market, creating an uncertain outlook for the industry. Furthermore, the PMI value for July was below 50, indicating a contraction in the manufacturing sector. However, the PMI value increased above 50 for consecutive two months, signalling an expansion in the manufacturing sector for the quarter. Looking ahead, there is an expectation of price increases in the upcoming months. This anticipation is driven by the arrival of the festival season, which typically boosts demand. The impending festive season is likely to contribute to a positive shift in the market, providing a potential upswing for insoluble Sulphur prices.
Europe
Throughout Q3, the prices of Insoluble Sulphur displayed a bearish trend in the market, primarily attributed to weaker downstream demand, particularly from the automobile industry, which experienced a decline throughout the quarter in the region. In August 2023, the Eurozone's manufacturing Purchasing Managers' Index (PMI) showed a slight increase to 43.5 from the previous month's 42.7, indicating of consecutive months in third quarter contractions. The construction industry faced challenges as high-interest rates persisted at 4.5% since July, leading to a slowdown in output rates despite sufficient material availability. Importantly, there was a stable flow of imports during this quarter, and no major supply chain disruptions were detected. This resulted in adequate inventory levels in the market, further contributing to subdued growth in the Insoluble Sulphur market. Additionally, the cost support from feedstock Sulphur diminished during this period, leading to reduced production costs in the Insoluble Sulphur manufacturing process. Looking ahead, there is an anticipation of an increase in the price of Insoluble Sulphur in the upcoming period. This expectation is driven by the rising prices of imports, particularly from Asian markets like China and India. The evolving market dynamics suggest a potential shift towards an upward trajectory for Insoluble Sulphur prices soon.
For the Quarter Ending June 2023
North America
As of Q2 the prices of insoluble sulphur in the American market have incremented this was due to increase in demand from the downstream tyre industry. As per Michelin leading tyre manufacturer, in North America, automaker are continued to rebuild their inventories against amid constant demand, in replacement industry from the passenger car and light truck, the demand was high however in truck and bus tyre replacement industry demand was found to be on the lower side. Furthermore, stabilizing interest rate and there was constant decrement in the inflation rate as it value has stated 4.9 in April, 4.1 in May and 3 in June which increased the purchasing power of end stream industry consumer and created positive market sentiments. Additionally, the plants were operating at stable rate with increased demand from the downstream industry which led to low inventory level in the market and inventories was offered at premium pricing. Furthermore, there was constant increment in the natural gas prices which led to high production cost. Thus, as of June ending of Q2 the prices of Insoluble sulphur were stated at USD 2128/MT FOB Texas.
Asia-pacific
The prices of Insoluble sulphur in Chinese market declined throughout Q2 this was mainly due to decline in the prices of feedstock sulphur. In addition, the prices feedstock Crude Oil declined further causing decrement in the prices of Insoluble sulphur. Additionally, there was demand problem in China as demand from the domestic automobile sector and international market has declined specially from the European market due to weak global economic outlook and there was deflation problem amid slow economic recovery in China across Q2 creating negative market sentiments. Furthermore, there was adequate inventory level in the market to meet domestic and overseas demand. As the top manufacturer were offer discount as there was decreased demand in the automobile sector due to low demand form the domestic market. In addition, the coal prices decrement as it was offered at a discounted prices from the Australian market. Thus, as of June ending of Q2 the prices of Insoluble sulphur were stated at USD 1080/MT FOB Qingdao.
Europe
The price of insoluble sulphur has declined as of Q2 in Europe, this was declining feedstock sulphur prices. Furthermore, the prices of LNG have decrement due to decrease Natural Gas throughout Q2 indicating decrement in production cost. In Addition, demand from the downstream tyre industry has declined as the European Tyre and Rubber Manufacturer reported that the demand from replacement segment has stifled amid global economic insecurity and rising costs due to rising inflation. Additionally, there been 12 per cent decline in sale of replacement tyre compared to Q2 2022 at the same time there was 28 per cent decline in demand from the truck and bus industry and 34 per cent drop for replacing agriculture tyres. Furthermore, there has significant decline in the prices of crude oil which lead to decline in feedstock sulphur prices. Furthermore, the demand from the international market has declined specifically from the US replacement tire market in Bus and truck division. In Addition, due to constant declining prices there was negative market sentiments which led to low procurement activities.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Insoluble Sulphur market displayed mixed sentiments, which was supported by shifting dynamics of supply and demand. After hardly going upward in January, prices for Insoluble Sulphur increased in February, only to decline as the quarter's end drew near. The automobile sector began to recover as soon as the supply of semiconductors began to improve, but it was badly hurt by the economic turmoil caused by the failure of two significant US banks. Because of the severe effects of the recession, less Insoluble Sulphur was consumed by the automotive industry, which eventually resulted in a decrease in price.
APAC
The Asia-Pacific region's Insoluble Sulphur market showcased mixed sentiment. In Asia-Pacific, the cost of Insoluble Sulphur rose in January and then took a downturn in February. The faltering automobile industry in the Asia-Pacific area quickly started to exhibit indications of deterioration as China started to reduce its automotive inventories. Due to massive inventories and few sales, Tesla reduced the market value of automobiles, which started a pricing war in the Chinese auto sector. The destocking of autos resulted from other manufacturers imitating this. Due to the automotive industry's active destocking activities, the production of automobiles declined, which also had an impact on the demand for Insoluble Sulphur.
Europe
Prices for Insoluble Sulphur decreased in the European market throughout the first quarter of 2023, which was supported by a drop in downstream demand. Even though the European market for the downstream automotive and tire industries showed signs of improvement multiple times throughout the quarter, demand for Insoluble Sulphur did not significantly increase. There were also a lot of Insoluble Sulphur inventories, which caused the price to drop because there was not as much demand for the product as there was supply. The supply rate was further increased by the absence of supply chain bottlenecks and crowded ports, which contributed to the decline in Insoluble Sulphur prices.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a steady decline in the prices of Insoluble Sulphur in the North American market due to weak downstream demand and lower upstream costs. The demand for Insoluble sulphur decreased as the downstream rubber and tire sectors remained underwhelming in terms of production and market performance during the quarter. Additionally, as the energy prices were mostly falling during the considered period, so did the manufacturing cost of Insoluble sulphur, which ultimately reduced the value of the commodity in the market. As a result, the expected price for Insoluble sulphur in the USA during December was USD 1797/MT FOB Texas, which was 10.2% less expensive than the price in September.
APAC
The fourth quarter of 2022 started on a strong note for the Insoluble Sulphur market in the Asia-Pacific region. The prices showcased a significant rise during the month of October, which fell consistently as the quarter proceeded. The market value of Insoluble sulphur displayed conflicting feelings due to variances in downstream demand from numerous industries. Furthermore, owing to their unequal growth throughout the course of the quarter, the domestic market's demand for Insoluble sulphur from the tire and rubber industries fluctuated. Other factors that affected the growth of the Insoluble sulphur industry included variable production costs and upstream costs. Hence, Insoluble sulphur evaluated prices in China in December were USD 1260/MT FOB Qingdao.
Europe
Unlike North America and APAC, the value of the European Insoluble Sulphur market declined in the first two months of the quarter, which later started increasing in December. Overall, the Insoluble Sulphur showcased mixed sentiment during the 4th quarter of 2022. Due to variations in downstream demand from numerous industries, the market value of insoluble sulphur revealed contradicting sentiment. The domestic market's demand for Insoluble Sulphur from the tire and rubber sectors fluctuated because of their uneven expansion throughout the quarter. Insoluble sulphur industry growth was also impacted by upstream costs and variable production costs. Therefore, the estimated price for insoluble sulphur in the Netherlands during December was USD 2280/MT CFR Rotterdam, which was 11.2% more than the price in September.
For The Quarter Ending September 2022
North America
The prices of Insoluble Sulphur in the North American region remained fluctuating during the third quarter of 2022 due to shifting dynamics between supply and demand. Prices for Insoluble Sulphur increased in July, decreased in August, and then increased again in September. The rise in industrial production rates and the oversupply of stocks were the main contributors to the price fall for Insoluble Sulphur in August. Weak downstream demand from the rubber and tire industries reinforced this tendency even more. September saw a change in the pricing trend for Insoluble Sulphur because of supply issues, supply chain disruptions, and a rise in demand. Finally, supply issues, low stock levels, and a resurgent market contributed to North America's price resurge of insoluble sulphur. Conclusively, the assessed price value of Insoluble Sulphur was USD 2002/MT FOB Texas during September.
APAC
Due to an overwhelming supply and weak downstream demand, Insoluble Sulphur prices fell throughout the third quarter of 2022 in the Asia-Pacific region. Due to better material availability in the market during the quarter, which was facilitated by high industrial operating rates in exporting nations, ample supply, and overstocked inventories, the price of Insoluble Sulphur declined in the domestic market. Additionally, due to low output of the downstream demand from the rubber and tire sectors culminated in weak volume offtakes, which supported Insoluble Sulphur's lower pricing. As a result, the estimated price for Insoluble Sulphur in September in China was USD 1460/MT FOB Qingdao.
Europe
Due to shifting dynamics between supply and demand, the price of Insoluble Sulphur in the European market remained unpredictable in the third quarter of 2022. In July and September, Insoluble Sulphur prices increased, but August prices declined. The three primary factors that led to the price decline for Insoluble Sulphur in August were an increase in industrial production rates, an excess supply, and an overabundance of stocks. This tendency was made stronger by weak downstream demand from the rubber and tire industries. Due to supply shortages, broken supply chains, and rising demand, the pricing trend for Insoluble Sulphur changed in September. Overall, tighter supply, lower stockpiles, and a recovering market contributed to the price increase of Insoluble Sulphur in Europe. Finally, Insoluble Sulphur's price was USD 2300/MT FD Hamburg during September.
For the Quarter Ending June 2022
North America
In North America, the Insoluble Sulphur price rose throughout the second quarter of 2022. The demand for Sulphur from downstream rubber industries and other key driving sectors in the region. The uncertainty in the crude oil prices affected the prices of intermediates chemicals and other industries. The high freight rates are owing to the rise in energy prices. The cost pressure from upstream Sulphur strengthened the market and ultimately increased the downstream Insoluble Sulphur price. The US had sanctioned Russia's import and export business which affected the US market. The United States imports most of the Insoluble Sulphur from the Asia Pacific region.
Asia-Pacific
The insoluble Sulphur market in the Asian region witnessed a fluctuation trend throughout the second quarter of 2022. In India, the Insoluble Sulphur soared in April and sharply decreased in the rest of the quarter owing to the less demand and sufficient supply from the downstream domestic market. The price of Insoluble Sulphur was recorded at a declination of 21% on an Ex-Mumbai basis during the second quarter. In China, Insoluble Sulphur showed an increasing trend; the entire second quarter had a tight supply of products due to the COVID restrictions and supply chain disruptions, and the producers raised their offers in the domestic market. The price of Insoluble Sulphur was settled at an inclination of 5% on a FOB Qingdao basis during the quarter.
Europe
Throughout the Europe region, the price of Insoluble Sulphur showed volatility in the second quarter of 2022. The European countries and western regions' sanctions on Russia's import and export of products affected the trading business in the entire region. The supply disruption had impacted the product's price due to tension in Eastern Europe. The insufficient supply and demand from downstream industries are dynamic in the price range. High-cost pressure from the soaring crude oil drives the Sulphur market in the region. Challenges related to rising gas prices, raw materials, and semi-finished product supplies are expected to keep the industry under pressure.
For the Quarter Ending March 2022
North America
WTI crude oil prices soared during the first quarter of 2022 owing to constrained supply fundamentals in the backdrop of Russian invasion of Ukraine in late-February. Consequently, feedstock sulphur prices have risen steadily during the first quarter which increased the inflationary pressure on downstream Insoluble sulphur. Meanwhile, consumption of Insoluble sulphur remained strong as the tire industry kept robust volume intakes. Furthermore, automotive industry has also shown early signs of recovery however the European conflict may hamper the change in momentum. Hence, as of March 2022, Insoluble sulphur prices were assessed at USD 1610 per MT on FOB basis.
Asia Pacific
Crude oil prices have remained volatile in the global market and Asian market. During the first quarter, South Asia, which rely heavily on import of crude oil from Middle East as well as other regions, has seen strong growth in crude oil prices and consequently feedstock sulphur prices have gained significantly pressuring downstream Insoluble sulphur market. Hence, insoluble sulphur prices rose consistently throughout the quarter. In the Indian domestic market, Insoluble sulphur prices were assessed at INR 124000 per MT (USD 1618.41 per MT) on CFR basis, while in the Chinese domestic market Insoluble Sulphur prices settled at USD 1105 per MT. On the demand side, consumption from downstream tire industry, a crucial industry of application, remained firm stable to firm.
Europe
During the first quarter of 2022, Insoluble sulphur market remained sturdy due to a strong bullish rally in upstream crude oil and feedstock Sulphur. Brent crude oil prices have gained substantially while the LNG market has been short on supply owing to rising tension between Russia and Europe. Russia had been a key exporter of natural gas to the European nations however Ukrainian invasion has propelled Europe to sanction Russia meanwhile Europe continued looking for alternatives. On the demand side, tire manufacturing has been a key industry for Insoluble sulphur, demand dynamics has been weak to stable owing to underwhelming performance of automotive industry. Replacement tire demand has been stable in the European market while production curtailment in automotive industry has resulted in weak consumption of original equipment tires. Hence, as of March 2022, Insoluble Sulphur prices crossed USD 2000 per MT mark on FD basis.
For the Quarter Ending December 2021
North America
Demand fundamentals started the quarter on a strong note where robust consumption from tire industry resulted in firm prices of Insoluble sulphur across USA and Canada. Crude oil volatility increased the prices of sulphur in H1 which increased the cost pressure over downstream insoluble sulphur. Demand decreased towards the end of the quarter as the consumption levels declined in H2 of the last quarter. Consequently, Insoluble prices in USA observed uptrend in first two months while in lieu of declined demand, prices of Insoluble sulphur in USA dropped in December and were assessed at USD 1470 per MT.
APAC
Insoluble Sulphur prices followed an upward trajectory in H1 of Q4 in line with costlier imports and soaring cost of upstream Sulphur in overseas markets. Traders revealed that the demand from downstream industries has remained stable however expensive imports has levied additional cost pressure on traders to mark their goods at a higher price. Consequently, Insoluble Sulphur was assessed at INR 193500 per MT Ex-Mumbai in November. Crude oil prices have fluctuated in later stages of November and consequently sulphur prices have varied in recent weeks. Seesawed prices of sulphur have translated into volatile prices of Insoluble sulphur. Prices of insoluble sulphur dipped in initial weeks of December, however prices soon recovered towards the end of December. In China, Sulphur market observed bearish sentiment during major part of the last quarter which resulted in declined cost pressure over downstream Insoluble sulphur. Therefore, prices of Insoluble sulphur remained soft throughout the quarter however recovery in sulphur prices towards later stages of Q4 translated into improved prices of Insoluble sulphur in December.
Europe
Feedstock Sulphur prices remained on an incessant uptrend throughout the quarter on the back strong volatility in Brent crude oil prices. This increased the cost pressure on downstream Insoluble sulphur and consequently insoluble prices were robust in Q4. On demand side, consumption from tire industry was termed as robust by several market participants and therefore insoluble sulphur remained in robust demand. Tire industry gained from replacement tire segment in Q4 following the trend of previous quarters. However, demand stabilized towards the later stages of Q4 on the back of sluggish consumption levels in lieu of holidays season. Consequently, Insoluble sulphur prices observed stagnancy in December.
For the Quarter Ending September 2021
North America
The prices of Insoluble Sulphur remained rangebound during the third quarter of 2021. Stagnant automotive sector growth around the world has been a key factor behind slowed demand progress across the region. Following the trend of previous quarters, the global shortage of semiconductor chips continued to disrupt automotive production, which resulted in muted consumption of insoluble Sulphur during the third quarter. Improved supply of upstream Crude Sulphur in the US resulted in the ample stock availability of Insoluble Sulphur in this quarter.
Asia
The overall pricing of Insoluble Sulphur witnessed an upward trajectory in the third quarter of 2021. In the Indian market, the prices kept on rising in the first half of Q3 due to modest offtakes from the downstream sectors, while traders reported disturbance in supply chain activities. The demand for Insoluble Sulphur remained stagnant from the downstream tire manufacturing segment due to prevailing chip shortages affecting automotive production. In addition, freight congestion also influenced the Insoluble Sulphur price in the Indian domestic market. A steep rise in Insoluble Sulphur price was observed in India during the third quarter and local prices shot up to USD 2228/MT levels in September.
Europe
The domestic market of Insoluble sulphur strengthened during the 3rd quarter of 2021 across the European region. The demand for Insoluble Sulphur improved in Q3 from the downstream tire manufacturing segment owing to increased demand for new automotive vehicles in the region. Tight supply of raw materials and international freight congestion further influenced the price trend of Insoluble Sulphur in the third quarter.
For the Quarter Ending June 2021
North America
In the North American market, marginal fluctuation was observed in the prices of Insoluble Sulphur, especially in USA during Q2 2021. However, the demand from downstream tyre manufacturers remained firm throughout the quarter, as the active winter season increased the demand for winter tyres. Following the revival in supply activities across US, supply of upstream Crude Sulphur gradually improved which led to an improvement in stock availability of Insoluble Sulphur as well. Thus, the overall demand supply gap remained narrow, and traders maintained ample stock availability to satisfy the overall demand. Therefore, despite of several marginal fluctuations, average price of Insoluble Sulphur remained in the range of USD 1740/MT to USD 1760/MT during this timeframe.
Asia
Insoluble Sulphur market witnessed firm sentiments during Q2 2021, as the demand from downstream sectors improved initially in the month of April. In China, the demand for Insoluble Sulphur increased effectively from downstream tyre manufacturers in April, which later gained stability during May and June. Meanwhile in the Indian market, as Insoluble Sulphur is a majorly imported commodity, its prices rose effectively during April and May, in effect of rising freight cost and material shortage in the country. However, prices later declined effectively after gaining ample stocks to satisfy the overall requirement of the country. Eventually, prices of Insoluble Sulphur reached USD 1492/MT and USD 1913/MT in China and India, respectively.
Europe
Price of Insoluble Sulphur fluctuated in a narrow range across Europe, during Q2 2021. While the demand from downstream tyre manufacturers-maintained stability, however component shortage restrained the tyre demand from the new automotive vehicles. In the meantime, taking cues from European automotive sector, Eastman decided to divest its tyre additive business, which also includes its Insoluble Sulphur brand Crystex, intending to sell the assets of additives manufacturing units to other company.
For the Quarter Ending March 2021
North America
The North American market registered slowed demand for Insoluble Sulphur from the downstream sectors during Q1 2021. Freezeout in February created a chaos across the region, which led to shortage of multiple products including raw material Sulphur. Although that didn’t affect the prices of Insoluble Sulphur due to poor demand from the tyre manufacturing sector, despite that the prices of Insoluble Sulphur were seen experiencing marginal gains across the region during this period. The price of Insoluble Sulphur lost its value by USD 25/MT during the quarter and settled at USD 1595/MT during March.
Asia
The Asian Insoluble Sulphur market encountered a fair demand from the regional markets, with an upward price trend followed during this quarter. After Lunar year holidays, the Chinese market could see active restocking from the tyre manufacturing sector amidst global shortage of Insoluble Sulphur. In the Indian markets, since Insoluble Sulphur is majorly imported in the country, the prices were primarily affected with surging freight and shipping cost, which surged aggressively during this period. Thus, the prices of Insoluble Sulphur rose by 19.4% in the Indian market, and 9.31% in the Chinese market from January to March 2021.
Europe
Europe experienced a growth of 10% in the automotive sector, that enhanced the demand for Insoluble Sulphur from tyre manufacturers across the region. Curtailed refineries operations and lesser output were heard deterring supply in some European countries like France and UK, which affected the supply of Insoluble Sulphur across the region. However, fair demand amid global shortage forced the prices to follow upward path. With the region imposing fresh lockdowns in some key economies, slowdown in tyre manufacturing is anticipated to pressurise the enquiries for Insoluble Sulphur in the near term.
For the Quarter Ending December 2020
North America
The North American market experienced healthy revival in different sectors during the final quarter of 2020. Market sentiments were up, as an effect of significant rise in export demand from the Asia Pacific region. Demand of Insoluble Sulphur increased from the tyre manufacturing sector, due to fair improvement in the automotive sales during Q4 2020 compared to Q3 2020. Supply problems, however persisted driven by lesser operations in some regional plants.
Asia
During Q4 2020, the Asian market started rising from dull dynamics and headed towards stability. Demand for Insoluble Sulphur rose in tandem with economic recovery in the APAC region. With Indian government’s strict measures to deal with hefty tyre imports, the demand rose appreciably within India especially from the tyre manufacturing sectors. In addition, India’s Continental Carbon announced expansion of its tire manufacturing facility at Uttar Pradesh, India. In December, Chinese rubber demand from the automotive industries increased that supported the sentiments of the additive Insoluble Sulphur.
Europe
The European market was struggling to come out of the historic fall in its tyre demand created by the COVID-induced slowdown. The European automobile sector reported improvement in its quarterly sales but still struggled to maintain their demand/supply fundamentals amidst hovering uncertainty in the market. Reduced tyre manufacturing negatively affected the demand for additive Insoluble Sulphur. Multiple plant shutdowns worsened the situation and created lower availability of Insoluble Sulphur in the region.
