For the Quarter Ending December 2024
North America
The North American Sulphur market exhibited a bullish trend in Q4 2024, driven by supply chain disruptions, rising demand, and production challenges. Strikes in Canadian ports, halted operations in major facilities, and rail delays from freezing winter conditions created significant supply constraints. Domestic production faced additional setbacks due to Hurricane Helene and flooding incidents, limiting output and tightening supply. High refinery utilization rates in the Gulf Coast and Midwest helped stabilize supply but did not fully alleviate market pressure.
Demand from the agrochemical sector remained robust throughout the plantation season and beyond, fueled by fertilizer needs and soil replenishment after reduced field activity. Global phosphate market tightness, exacerbated by Chinese export restrictions and domestic production outages, further supported demand for Sulphur.
Political uncertainty, including potential tariffs on Canadian imports, added to market volatility, while congestion at US ports and backlogs from strikes intensified logistical challenges. Buyers continued active procurement to secure volumes, balancing seasonal and ongoing needs. Overall, the Sulphur market was marked by tight supply, heightened demand, and cautious but optimistic market sentiment.
APAC
The Sulphur market in the APAC region demonstrated a bullish trend during Q4 2024, driven by strong demand, fluctuating production costs, and tight inventory levels. In China, the post-Golden Week period witnessed heightened market activity as participants returned to address increased demand during the plantation season. Demand from the agrochemical sector and phosphate producers remained strong, supported by high operating rates and the need for fertilizers. However, port inventories declined steadily, reflecting insufficient supply to meet rising consumption. Logistical disruptions from typhoons, port congestion, and reduced sailings compounded supply challenges, limiting the inflow of new stocks. The market also witnessed active trading, with international and domestic transactions highlighting ongoing supply movements and demand dynamics. However, at the end of December, bearish market sentiments emerged due to export restrictions, price cuts by major producers, and lower phosphate production rates. Seasonal demand variations and uncertainty around export policies further contributed to the market’s softer tone. Phosphate producers operated at reduced capacities, but expectations of higher run rates post-Lunar New Year hint at potential market recovery.
Europe
During Q4, the Sulphur market in the European region remained bullish due to tight supply conditions and increased production costs. Sanctions on Russian crude imports led to a reliance on low-sulphur crude, further driving up production expenses. The ongoing plantation season significantly boosted demand, particularly in the agrochemical sector, adding upward pressure on the market. Furthermore, the market continued to face persistent challenges, such as limited inventory levels and production disruptions in the European region. The restart of some plants and increased imports provided some relief, but issues like port congestion and fire at Grillo Werke's plant continued to strain supply chains. The recent leak in the Druzhba pipeline raised initial concerns, but supply remained unaffected. As the plantation season progressed, demand for sulphur grew, supported by projects like the Aglobis and Rhenus remelter plants, which aim to address long-term supply constraints. Overall, the market demonstrated resilience amidst these challenges, reflecting a complex interplay between supply limitations, rising demand, and strategic responses to ensure stability.
MEA
During the last quarter of 2024, the Sulphur market in the Middle Eastern region has consistently demonstrated bullish market sentiments, driven by strong demand and tight supply conditions amidst global and geopolitical pressures. Rising crude oil prices and the Red Sea crisis have contributed to increased production costs and freight charges, intensifying the bullish trend for the Sulphur market. The plantation season and heightened overseas demand have further spurred consumption rates, reflecting robust market optimism. Furthermore, with the maintenance at the Red Sea Yasref refinery, which temporarily halted sulphur shipments, the bullish sentiment persisted. The maintenance, coupled with supply chain disruptions, has further tightened the market. The broader challenges, including geopolitical tensions and supply chain disruptions, have underscored the market's resilience in maintaining the bullish market sentiments, presenting opportunities for downstream sectors. Overall, the market's bullish trend has been driven by strong demand from the agrochemical sector, supply constraints, and strategic supplier actions, showcasing resilience and confidence amidst global and regional challenges.
For the Quarter Ending September 2024
North America
In Q3 2024, Sulphur prices in North America experienced a strong 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 Sulphur availability across the region. These disruptions hindered the transportation and production of Sulphur, 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 heavily on Sulphur, especially in fertilizers, to meet seasonal demand, adding pressure to an already constrained supply.
Interestingly, despite a decrease in Crude Oil prices, the production costs for Sulphur showed a downtrend. However, these lower production costs were not sufficient to offset the supply and demand imbalance. In the USA, Sulphur prices rose consistently, showing a year-over-year increase of 16% and a quarter-on-quarter rise of 8%, indicating a bullish trend. By the end of Q3, Sulphur prices reached USD 130/MT (Granular) CFR Texas, underscoring the region's strong pricing environment and sustained upward momentum for Sulphur as the market adapted to these complex conditions.
APAC
In Q3 2024, the APAC Sulphur market saw a notable uptrend in prices, largely influenced by a range of market dynamics. Geopolitical tensions and supply chain disruptions in major oil-producing regions heightened uncertainty, which impacted Sulphur production costs and fostered a bullish market sentiment. Singapore, particularly, observed significant price volatility, with Sulphur prices reaching USD 110/MT (CFR-Jurong) by quarter-end. The Singaporean market showed seasonal price fluctuations due to shifts in supply-demand balance and inventory adjustments. While Singapore faced rising prices, Singapore’s Sulphur market experienced a contrasting trend, with a year-over-year price decrease of 5%. This highlighted the inherent volatility within the region, as Singapore’s softer demand for Sulphur contributed to the differing price dynamics. Despite this, the quarter-ending price of Sulphur in Singapore, at USD 150/MT (Granular) CFR Jurong, underscored a positive pricing environment with sustained upward pressure, reflecting the broader APAC market’s resilience amid complex geopolitical and seasonal factors.
Europe
In Q3 2024, the Sulphur market in Europe experienced a notable uptrend in prices, characterized by a robust increase in market value. This surge can be attributed to several key factors that influenced market dynamics throughout the quarter. The tightening supply of Sulphur due to maintenance rounds and unplanned outages at refineries in Western Europe significantly impacted pricing. Additionally, the onset of the plantation season heightened demand, further exacerbating the limited availability of the commodity. The widening spread between Sulphur and crude oil prices underscored the bullish market sentiments prevalent in the region. Germany, in particular, witnessed substantial price changes compared to the rest of Europe. Despite a -5% drop from the previous quarter. Furthermore, the significant -24% decrease from the same quarter last year highlighted the market's resilience and adaptability to changing conditions. The quarter-ending price of USD 84/MT of Sulphur (Granular) FOB Hamburg in Germany marked the culmination of a period characterized by increasing price trends and a generally positive pricing environment.
MEA
In Q3 2024, the Sulphur market in the Middle East and Africa (MEA) region experienced a pronounced upward trajectory in pricing, driven predominantly by several key factors. The market dynamics were heavily influenced by heightened demand from the downstream agrochemical sectors, fueled by the ongoing plantation season, which necessitated increased Sulphur usage. Additionally, geopolitical tensions and associated disruptions in global crude oil supply chains led to escalated production costs, contributing further to the bullish sentiment in the Sulphur market. The imbalance between supply and demand, exacerbated by insufficient inventory levels, also played a pivotal role in pushing prices upward. Focusing on Saudi Arabia, the market witnessed the most significant price fluctuations. Seasonal demand peaks, coupled with production challenges and strategic inventory management, resulted in a marked 27% price increase from the previous quarter. Compared to the same quarter last year, prices rose by 27%, underscoring the persistent upward pressure. The quarter concluded with Sulphur (Granular) prices reaching USD 124/MT FOB-Al Jubail, reflecting a consistently positive pricing environment driven by strong market fundamentals and external economic pressures.
For the Quarter Ending June 2024
North America
During Q2 2024, the North American Sulphur market experienced a mixed trend. During the H1 of the second quarter, the Sulphur market showcased bullishness in their trend. The US market was affected by the high inflation rate and the potential Canadian National Railway Strike, which resulted in a supply chain disruption pushing the Sulphur market towards the bullish market scenario. Due to the ongoing Plantation season, the demand from the downstream Agrochemical sector has increased which led to the supply deficiency of the commodity.
However, in the H2 of the second quarter, the market showcased a declining pattern. This downward trajectory can be attributed to several key factors influencing the market. The overarching trend has been driven by a significant oversupply of Sulphur, exacerbated by high refinery throughputs and ample inventory levels. Despite efforts to stabilize the market, the demand from the downstream Agrochemical sector has been sluggish due to the summer fertilizer off-season.
In the USA, the market prices decreased by 7% from the same quarter last year however, they increased by 2.85% from the previous quarter in 2024. By the end of the quarter, Sulphur (Granular) prices in the USA settled at USD 105/MT (CFR-Texas).
APAC
During Q2 2024, the Sulphur market in the APAC region experienced a mixed trend, influenced by several key factors. At the start of the second quarter, the prices of the commodity experienced an incline in their trend since the demand from the downstream Agrochemical enterprises was strong and the inventory levels were utilized at a faster rate which resulted in the supply deficiency. Sinopec’s Puguang, the largest Sulphur producer in China, increased its sulphur prices in Wanzhou and Dazhou. In terms of the upstream market, the prices of Crude Oil inclined as well which resulted in the increased production cost of the commodity. However, the trend showcased a declining pattern in the second half of the quarter. The overarching sentiment has been negative, driven primarily by subdued demand from the downstream agrochemical sector, which has been impacted by the ongoing harvesting season. Additionally, increased production costs due to rising crude oil prices have not translated into higher Sulphur prices, as ample inventory levels have sufficiently met the existing demand. This overstock has led to a bearish market, with suppliers reducing their ex-quotations to clear out excess inventory. In China, where the most significant price fluctuations were observed, the Sulphur market faced a marked decline. This was exacerbated by seasonal factors, including the mid-year planting season, which failed to boost demand as anticipated. The overall trend in China mirrored the broader regional sentiment, with a pronounced 32% decrease from the same quarter last year. Compared to the previous quarter in 2024, prices further declined by 10%, reflecting persistent bearish market conditions. Price comparison between the first and second halves of the quarter indicated a 4% drop, consolidating the negative outlook. At the conclusion of Q2 2024, the quarter-ending price for Granular Sulphur in China stood at USD 144/MT (Ex-Shanghai). This figure underscores the declining pricing environment, characterized by a surplus in supply and lacklustre demand.
Europe
During Q2 2024, the European Sulphur market showcased a mixed trend. During the H1 of the second quarter, the Sulphur market experienced an incline in its trend since the inventories were unable to meet the rising demand from the downstream Agrochemical sectors due to the lower production which was partly the result of increasingly sweeter crude feedstocks being used by the refineries as Red Sea logistics issues and a ban on crude imports from Russia limited the availability of sour inputs. Notably, the demand from downstream Agrochemical sectors soared during this period, driven by both economic challenges and the ongoing crop season in Germany. However, in the H2 of Q2, the bearish trend was primarily influenced by stable yet subdued demand from the downstream agrochemical sector and adequate existing inventory levels. Despite the reduced production costs due to a decline in crude oil prices, the market remained oversupplied, further exerting downward pressure on Sulphur prices. Focusing on Germany, the ongoing harvesting season resulted in moderate demand from the agrochemical sector, which, combined with ample inventories, led to a cautious pricing approach among market players. The price of Sulphur in Germany declined by 11% compared to the same quarter last year, reflecting a significant decrease in market confidence and demand. Furthermore, compared to the previous quarter of 2024, however, the prices increased by 9.33% this quarter. The quarter concluded with Sulphur prices at USD 76/MT (Granular) FOB Hamburg.
MEA
During Q2 2024, the Sulphur market in the MEA region witnessed a mixed trend. In the first half of the second quarter, the market showcased an incline in their trend. This rise was influenced by the increasing production costs due to the uptick in Crude Oil prices. Additionally, heightened demand from the Agrochemical and Rubber Vulcanisation sectors, both domestically and internationally, led to increased consumption of existing inventories and boosted trading activities from the Middle East to overseas markets to meet the growing demand. Additionally, the Red Sea disruption continued and resulted in the delayed transportation of the cargo as the Hamas-based Youthis continued to attach the coming cargo causing disruption. Therefore, the traders chose to trade their cargo via the Cape of Good Hope. In the second half, the market experienced significant downward pressure due to ample inventory levels coupled with lacklustre demand from the downstream agrochemical sector. The harvesting season further suppressed demand, as consumption rates typically dip during this period. Additionally, global economic uncertainties and fluctuating crude oil prices contributed to reduced production costs, which were not offset by sufficient market demand, thereby exacerbating the bearish sentiment. The geopolitical instability in the Red Sea region, though a complicating factor, did not significantly disrupt supply chains enough to counterbalance the declining trends. The year-on-year percentage change stood at a substantial 14% decrease, highlighting a significant drop from the same quarter last year. Compared to the previous quarter in 2024, prices increased by 12%, showcasing an incline. The quarter-ending price for Sulphur (Granular) FOB-Abu Dhabi settled at USD 80/MT, accentuating the negative pricing environment.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Sulphur market in North America experienced a mixed situation. There was a high supply of Sulphur, but the demand from downstream sectors was sluggish. This was mainly due to the low demand from the agrochemical and Vulcanisation of Rubber sectors, which resulted in a decline in prices.
Additionally, the increase in transportation fuel costs added to the overall operating cost for the product. In the USA market, Sulphur prices declined by 11% compared to the previous quarter, reflecting a seasonal and correlated trend. Interestingly, there was a 2% price difference between the first and second half of the quarter.
However, in March, the prices of Sulphur witnessed an incline in their trend due to the surge in prices driven by an imbalance between supply and demand, with existing inventories unable to meet the increased demand from downstream Agrochemical enterprises. To address this heightened demand, production rates were ramped up, leading to increased trading activities from the Canadian market to the US market.
APAC
During the first quarter of 2024, the Sulphur market in the APAC region exhibited a fluctuating trend. In January and February, the Sulphur market witnessed a widespread decrease and an ample supply of Sulphur. However, a decline in the utilization rate of downstream plant capacity dampened interest in sulphur procurement. Market trading remained sluggish, and sulphur shipments were lacklustre. Concurrently, port prices continued to fall, exerting a negative effect on the spot market. The market was overshadowed by a bearish sentiment, prompting significant reductions in prices at the beginning of the week to stimulate shipments. However, in March with the end of the Lunar New Year, the market traders became active and continued with their trading activities among the significant manufacturing units. Due to the increase in the demand for Sulphur from the downstream Agrochemical enterprises since the existing inventories were utilized during the Lunar New Year holidays and to fulfil the rising demand, the buyers increased their procurement activities. However, the main reason for the increased prices of Sulphur is the end of the holidays and the increased trading activities to meet the demand from the downstream sectors. Comparing the price percentage change to the previous year's same quarter, there was a decrease of 24%. Additionally, comparing the price percentage change to the previous quarter, there was a decrease of 10%.
MEA
During the first quarter of 2024, the Sulphur market in the Middle East and Africa (MEA) region witnessed an unstable price trend. In H1 of Q1, the prices of Sulphur declined due to the sluggish demand from the downstream Agrochemical enterprises, and the existing inventories accumulated which resulted in the bearishness in the Sulphur market situation. The demand was weak from the domestic as well as international markets which led to the trade flows from the UAE market to other overseas markets at a slower pace. Despite the increase in the freight charges from the MEA market to the overseas markets due to the Red Sea Crisis, the prices continued to decline. However, in H2 of Q1, the Sulphur market experienced an incline in their price trend, therefore, the trading activities among significant manufacturing units increased, along with the production rate of the product, to meet the rising demand from the downstream Agrochemical sector. This was necessitated by insufficient existing inventories to cope with the demand. Capitalizing on the bullish Sulphur market, market players took the opportunity to raise their ex-quotations and enhance their profit margins. The rate of consumption of existing inventories rose due to a surge in demand from the downstream Agrochemical sector.
Europe
The Sulphur market in Europe during the first quarter of 2024 experienced a mix of factors that influenced prices. Firstly, the market was impacted by a decline in demand from the downstream agrochemical sector, leading to lower consumption rates of existing inventories. This sluggish demand, combined with high inventory levels, resulted in a bearish market situation. Secondly, protests in European countries, including Germany, against government policies aimed at promoting the use of organic fertilizers, disrupted the supply chain and affected the overall economy. These protests raised concerns about the future of the agrochemical sector and contributed to the declining trend of Sulphur prices. Lastly, the decrease in prices of the upstream Crude Oil market played a role in the downtrend of Sulphur prices, as it reduced the operational cost for the product. The accumulated inventory levels and the need to clear them out led to market players reducing their ex-quotations and providing attractive offers to buyers. However, caution from buyers due to the weak agrochemical sector has limited procurement activities. In the second half of Q1, the prices of Sulphur inclined due to the insufficient existing inventories of Sulphur as the disruption in the supply and demand equilibrium was observed due to the ongoing Farmer’s protest as farmers blocked the roads and caused the disruption in the supply chain. Additionally, at the beginning of March, a German rail strike disrupted the sulphur market. The Union of German Train Drivers' announcement of a 35-hour nationwide strike, which started on the evening of 6 March affected the cargo logistics and further disrupted the sulphur market. The strike followed a dispute with rail firm Deutsche Bahn over weekly working hours. The strike led to disruptions and delays of products transported by rail, at a time when the Sulphur market was going through a period of deficit stemming from a shortage of molten material in the northern and central parts of northwest Europe.
