For the Quarter Ending September 2024
North America
In Q3 2024, Liquid Sulphur Dioxide prices in North America experienced an uptrend, with the USA seeing the most substantial price changes. This growth was driven by several factors impacting market dynamics. Supply constraints, caused by disruptions such as labor strikes and natural disasters, significantly tightened Liquid Sulphur Dioxide availability across the region. These disruptions hindered the transportation and production of Liquid Sulphur Dioxide, creating a scarcity that contributed to elevated prices.
The demand from the downstream agrochemical sector intensified as the plantation season progressed, driving further increases. The agrochemical industry relies on Liquid Sulphur Dioxide, especially in fertilizers, to meet seasonal demand, adding pressure to an already constrained supply.
Furthermore, a surge in the production cost of the commodity due to the increase in the prices of the feedstock Sulphur market further pushed the prices of Liquid Sulphur Dioxide upwards. In addition, along with the increased demand, the inventory levels of the commodity proved to be insufficient to meet the demand, hence, to reflect the market scenario, the market players increased their ex-quotations which resulted in the bullish market sentiments of the commodity in the US.
APAC
In Q3 2024, the APAC region witnessed a significant surge in Liquid Sulphur Dioxide prices, with India experiencing the most notable price changes. The market was influenced by several key factors that drove prices upwards. Rising production costs, particularly due to an increase in feedstock prices, played a crucial role in elevating market prices. Additionally, heightened demand from downstream sectors, such as the agrochemical industry, further intensified the market dynamics. The recovery of the monsoon season bolstered fertilizer demand, contributing to a bullish sentiment. Global supply chain constraints, particularly from China, limited imports to India, exacerbating the supply-demand imbalance and pushing prices higher. Plant shutdowns, including maintenance at key refineries, disrupted supply chains, further straining availability and contributing to the price escalation. In India specifically, the pricing environment for Liquid Sulphur Dioxide displayed a consistent upward trend throughout the quarter. Seasonal factors, such as the delayed plantation season and increased production activities in response to rising demand, influenced price changes. The correlation between rising production costs, robust demand, and supply shortages resulted in a positive pricing environment. The quarter-ending price of USD 238/MT Ex-Ahmedabad in India reflected the overall bullish sentiment in the market.
Europe
In Q3 2024, Europe’s Liquid Sulphur Dioxide market experienced an uptrend, propelled primarily by the rising costs of feedstock Sulphur. The strong increase in Sulphur prices directly impacted Liquid Sulphur Dioxide production expenses, pushing market prices upward as manufacturers passed on these heightened costs. This cost-driven price growth was further compounded by a surge in the demand from the agrochemical sector. During the quarter, agricultural activities across Europe surged, intensifying the demand for agrochemicals and, consequently, for Liquid Sulphur Dioxide. This seasonal spike in agricultural activity typically increases fertilizer demand, straining supply channels for Liquid Sulphur Dioxide. As a result, the region faced a pronounced supply-demand imbalance, which supported bullish price momentum throughout Q3. The heightened demand from the agrochemical industry, coupled with restricted supply, created a favourable environment for price increases, reflecting the market's sensitivity to both feedstock fluctuations and seasonal agricultural cycles. Moreover, the sustained high demand emphasized the market's dependency on downstream agricultural activities, magnifying the effects of any shifts in Sulphur costs or seasonal agricultural requirements. Consequently, Q3 2024 marked a period of elevated pricing for Liquid Sulphur Dioxide, underscoring the market's intricate supply-demand dynamics in Europe.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Liquid Sulphur Dioxide market saw a notable price increase, driven by several key factors that collectively created an inflationary environment. One of the primary contributors was the rise in production costs, which was largely influenced by the increased prices of upstream Sulphur and Crude Oil. As these essential raw materials became more expensive, the cost of producing Liquid Sulphur Dioxide naturally followed suit, pushing market prices upward. This cost escalation was not isolated but part of a broader trend affecting various sectors reliant on these feedstocks.
Additionally, the overall improvement in the manufacturing sector added to the upward pressure on Liquid Sulphur Dioxide prices. The quarter saw a surge in new orders and employment, indicating a robust industrial activity that heightened the demand for chemicals and related products. This increased activity required more Liquid Sulphur Dioxide. The heightened industrial demand, coupled with the existing supply chain constraints, contributed to the upward pricing trend. Furthermore, supply chain disruptions, such as delivery delays and higher shipping costs, exacerbated the situation. These disruptions were partly due to logistical challenges and the rising costs of transportation, which added another layer of pressure on prices.
The seasonal dynamics also played a significant role in shaping the market. The summer driving season traditionally boosts demand for regenerated Liquid Sulphur Dioxide from refineries, as it is used in various refining processes to produce cleaner fuels. Moreover, inflationary pressures and supply chain constraints, including the looming threat of rail strikes, added to the bullish market sentiment. The potential for such strikes created uncertainty and caution among market participants, who were hesitant to lower prices despite any short-term fluctuations in demand. This environment of heightened costs, increased demand, and logistical challenges culminated in a sustained price increase for Liquid Sulphur Dioxide throughout Q2 2024.
APAC
In Q2 2024, the Liquid Sulphur Dioxide market in the APAC region experienced a pronounced upward trajectory. Several key factors contributed to this price elevation. A significant driver was the surge in feedstock Sulphur prices, which saw substantial increases due to supply constraints and heightened global demand. Furthermore, the rising operational costs due to increased transportation and fuel expenses have also played a crucial role in pushing prices upward. Disruptions in the supply chain, notably due to plant shutdowns and operational delays, compounded these issues, limiting the available inventory and further straining supply. In India, the largest price fluctuations were observed, primarily due to the culmination of the plantation season cycle, which significantly boosted demand from downstream sectors, particularly fertilizers. This seasonality effect was exacerbated by the ongoing general elections, which disrupted supply chains and aggravated market sentiments. In comparison to Q1 2024, prices in India saw a marked increase of 3%, underlining a consistent upward trend throughout the quarter. The overall trend for Liquid Sulphur Dioxide in India during this period has been decidedly positive, driven by high demand and supply constraints. The quarter ended with prices reaching USD 16,000/MT Ex-Ahmedabad, underscoring the sustained bullish sentiment in the market. This upward pricing environment indicates a strong market response to both seasonal and economic factors influencing the industry.
Europe
In Q2 2024, the European Liquid Sulphur Dioxide market witnessed a substantial upward trend in pricing, driven by several key factors that collectively tightened the supply-demand balance. A significant driver was the robust maintenance schedule across European smelters, which limited the availability of Liquid Sulphur Dioxide, creating a notable supply crunch. This scarcity was further exacerbated by tightened supplies of molten sulphur, a crucial feedstock, as production from sulphur burners faced constraints. These combined supply-side limitations significantly reduced the availability of Liquid Sulphur Dioxide in the market, exerting upward pressure on prices. The situation was further strained by the strong demand from the agrochemical sector, driven by seasonal planting activities that required increased volumes of Liquid Sulphur Dioxide, thereby deepening the supply-demand imbalance.
The economic environment also played a crucial role in the escalating prices of Liquid Sulphur Dioxide. Inflationary pressures and increased production costs, primarily due to rising crude oil prices, added to the cost structure of producing Liquid Sulphur Dioxide. This economic backdrop, marked by rising input costs, significantly influenced the market dynamics, contributing to the overall price increase. The heightened demand from the agrochemical sector during the crop season further amplified the impact, as insufficient inventory levels struggled to meet the robust demand. The convergence of limited supply, strong seasonal demand, and higher production costs created a perfect storm, driving Liquid Sulphur Dioxide prices upward throughout Q2 2024.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American Liquid Sulphur Dioxide market encountered a bearish scenario characterized by diminishing demand and surplus inventory levels. This downturn was primarily driven by reduced orders from downstream Agrochemical firms, alongside the abundance of stored stocks. To counteract the market's downward trend, industry players opted to lower their ex-quotations and extended offers to entice buyers, aiming to stimulate purchasing activities.
However, despite these efforts, buyers remained cautious and restrained their procurement due to apprehensions about potential losses in the sluggish market, shifting towards on-demand purchasing practices. In the feedstock market, the decline in Sulphur prices contributed to decreased Sulphuric Acid prices in the North American market.
Analyzing the spread between Sulphur and Liquid Sulphur Dioxide, it narrowed, indicating a bearish sentiment prevailing in the Liquid Sulphur Dioxide market. In essence, the Liquid Sulphur Dioxide market in North America witnessed a downturn primarily due to inventory buildup, moderate demand from downstream sectors, and decreased production costs fueled by declining feedstock prices.
APAC
The pricing environment for Liquid Sulphur Dioxide in the APAC region during Q1 2024 has been mostly negative, with prices experiencing a downward trend. Several factors have influenced market prices, including a decrease in the price of the feedstock, particularly Sulphur, which has led to lower production costs. The lower demand from the downstream Agrochemical sector and the Food and Beverage sector has also contributed to the decline in prices. In India, the price changes for Liquid Sulphur Dioxide have been the most significant. Prices have decreased by 5.66% monthly, with a decrease of 0.62% weekly. The overall trend in India reflects a bearish market sentiment, with high supply and low demand. Suppliers have been cautious in accumulating inventories, waiting for a trend reversal before making significant bids. Looking at the overall trends and seasonality, the pricing environment for Liquid Sulphur Dioxide in Q1 2024 has been negative. The market has experienced a continuous decline in prices, with suppliers destocking inventories. The demand from the downstream Agrochemical sector and the Food and Beverage sector has been muted, leading to lower consumption of Liquid Sulphur Dioxide. The pricing environment for Liquid Sulphur Dioxide in Q1 2024 has been predominantly negative, influenced by factors such as lower feedstock prices, lower demand from key sectors, and destocking activities among suppliers.
Europe
During the quarter ending on March 2024, the European Liquid Sulphur Dioxide market witnessed a bearish trend, characterized by an oversupply of the commodity. Several factors contributed to this market condition, including reduced demand from the Agrochemical sector due to seasonal slowdown, lower prices in the Sulphur feedstock market leading to decreased operational costs, and consistent demand from industrial sectors. The ongoing protests in European countries disrupted the supply and demand equilibrium, although inventory levels remained sufficient. However, the hampered trading activities did not significantly impact the prices of the commodity since supplies were stocked up in the storage units. Market participants exercised caution by lowering their Ex-quotations, sacrificing some of their marginal profits to prioritize the utilization of stocked-up inventories. However, buyers also approached procurement cautiously, limiting their purchasing activities to mitigate potential losses and aiming to restore supply and demand equilibrium. Therefore, in conclusion, the Liquid Sulphur Dioxide market faced bearishness due to the sluggish demand from the downstream Agrochemical sector, stocked-up inventories and the ongoing Farmer’s protests in European countries.
For the Quarter Ending December 2023
North America
As of the conclusion of the 4th Quarter in 2023, the Liquid Sulphur Dioxide (SO2) market in the United States has witnessed a consistent decline in prices. The primary contributing factor to this downward trend is the decrease in the cost of its key feedstock, particularly Sulphur. The sustained reduction in prices over the past several months signifies an ongoing trend, leading to destocking activities among suppliers.
The downturn in demand for Sulphuric Acid, driven by subdued production in the fertilizer sector, has impacted the overall Liquid SO2 market. Despite a surplus supply of Liquid Sulphur Dioxide in the market, major industries are maintaining substantial inventories. The current market scenario involves destocking strategies, where suppliers are actively adjusting their inventory levels to align with the prevailing demand from downstream industries.
The downward price trend reflects the efforts of suppliers to balance inventory levels in response to shifting market dynamics. This destocking approach aims to reduce existing inventory levels to better match the current demand from industries and consumers. While the Food and Beverage sector may exhibit positive demand trends, the Sulphuric Acid market is likely experiencing a decline due to reduced fertilizer production in major industries.
APAC
By the conclusion of the 4th Quarter in 2023, there was a notable decrease in the price of Liquid Sulphur Dioxide, primarily influenced by a reduction in the cost of its key raw material, Sulphur, within the Indian market. The sustained decline in prices observed over recent months indicates a clear continuation of the downward trend in the market, prompting suppliers to engage in destocking activities to manage their inventories. The demand for Sulphuric Acid in the downstream market has diminished due to subdued production in the fertilizer sector. Despite a surplus of Liquid Sulphur Dioxide supply in the market, major industries are maintaining substantial inventories. The current market situation involves a destocking strategy as suppliers strive to align with the demand from downstream industries. This destocking approach entails reducing existing inventory levels to harmonize with the current demand from both industries and consumers. The Food and Beverage sector is exhibiting positive demand trends, while the Sulphuric Acid market is witnessing a decline attributed to decreased fertilizer production in major industries. This signifies a contrasting divergence in demand patterns between these two sectors, with one witnessing growth and the other encountering reduced demand. As of the current quarter, the price of Liquid Sulphur Dioxide concluded at 192 USD/MT, reflecting a decline of 15.78%.
Europe
As the 4th quarter of 2023 ended, the Liquid Sulphur Dioxide (SO2) market in Europe witnessed a notable decline in prices, influenced by various factors affecting the sulphur market dynamics. One prominent factor contributing to this trend is the decrease in sulphur prices, a key feedstock for Liquid SO2 production. The broader crude market conditions, geopolitical factors, and global Sulphur supply dynamics have impacted the cost of sulphur, consequently influencing the pricing of Liquid SO2. Moreover, subdued demand from downstream sectors, such as the chemical and food industries, has played a role in the declining price trend. The economic slowdown in the region, coupled with uncertainties in key industrial sectors, has resulted in decreased demand for Liquid SO2. Logistical considerations and transportation costs due to Red Sea crisis also contribute to the pricing dynamics. Fluctuations in freight charges and supply chain disruptions can affect the overall cost structure and subsequently impact the pricing of Liquid SO2. Overall, the declining trend in Liquid SO2 prices in Europe at the end of the 4th quarter can be attributed to a combination of feedstock cost adjustments, subdued industrial demand, and logistical considerations.
