For the Quarter Ending September 2024
North America
In Q3 2024, the North American Sulphuric Acid market experienced a significant upturn in prices, characterized by a 31% increase from the same quarter last year. This surge was primarily driven by a combination of factors, including supply chain disruptions, heightened demand from downstream industries, and rising production costs. The market witnessed an 11% increase from the previous quarter in 2024, further reinforcing the upward trend. The USA, in particular, witnessed the most substantial price changes, reflecting the overall regional dynamics.
Throughout the quarter, the USA market exhibited a positive correlation between increasing prices and various market influencers. Seasonal demand fluctuations, supply chain challenges, and geopolitical tensions all contributed to the price escalation. The 3% price difference between the first and second half of the quarter underscored the market's resilience and stability amidst changing conditions.
Ultimately, the quarter-ending price of USD 130/MT of Sulphuric Acid CFR Texas in the USA encapsulates the prevailing positive sentiment and the market's ability to navigate challenges while maintaining an upward pricing trajectory.
APAC
The third quarter of 2024 has witnessed an uptrend in Sulphuric Acid pricing within the APAC region, driven predominantly by heightened production costs due to escalating feedstock Sulphur prices. This quarter has been marked by a significant surge in demand from downstream sectors, particularly the agrochemical industry, which has compounded the persistent supply constraints. The geopolitical tensions and adverse weather conditions have further exacerbated supply disruptions, causing a ripple effect across the market. China, as the epicenter of these price dynamics, has experienced the most pronounced price fluctuations. The country's pricing environment has been influenced by seasonal agricultural demands, which have intensified during the plantation period, leading to increased Sulphuric Acid consumption. The market's bullish sentiment is underpinned by a remarkable 29% price increase from the previous quarter, a sharp upturn from the same period last year, reflecting a 10% rise. Concluding the quarter, Sulphuric Acid prices in China have stabilized at USD 47/MT (IR Grade) FOB-Qingdao. This quarter's pricing trajectory reflects a consistently positive market sentiment, driven by robust demand and constrained supply dynamics, reinforcing the overall bullish outlook.
Europe
In Q3 2024, the Sulphuric Acid market in Europe witnessed a pronounced uptrend, with Germany recording the most substantial price increases. This price growth was largely driven by a surge in feedstock Sulphur prices, which elevated production costs for Sulphuric Acid and pressured market pricing upward. Demand from downstream sectors, particularly agrochemicals, was a major factor in this trend, as increased agricultural activity during the quarter intensified the need for Sulphuric Acid, commonly used in fertilizer production. The seasonal demand spike for agrochemicals further fueled price growth across the region, magnifying supply-demand imbalances and supporting a bullish price environment. In Germany, Sulphuric Acid prices exhibited notable volatility, showing a 6% year-over-year increase and a steep 24% rise from the previous quarter. By the quarter's end, Sulphuric Acid (IR Grade) was priced at USD 85/MT FOB Hamburg, underscoring the strong, positive pricing environment that defined Q3. This trend highlights the combined impact of rising feedstock costs and seasonal demand pressures across the European market.
MEA
In the MEA region during Q3 2024, the Sulphuric Acid market experienced a significant uptrend in prices, reflecting a positive pricing environment. Various factors contributed to this price increase, including escalating production costs linked to rising feedstock Sulphur prices. The market also witnessed heightened demand from both domestic and international agrochemical sectors, particularly driven by the ongoing plantation season. These factors collectively exerted upward pressure on prices, leading to a 19% increase from the same quarter last year. Saudi Arabia, in particular, witnessed the most substantial price changes within the region. The market in Saudi Arabia reflected similar trends of increasing prices, in line with the broader regional context. Seasonality played a crucial role, with the ongoing plantation season boosting demand and influencing price dynamics. The correlation in price changes was evident, with a notable 10% increase from the previous quarter in 2024. The quarter ended with the latest price of USD 85/MT of Sulphuric acid Spot Ex-Jeddah in Saudi Arabia, underscoring the overall positive and upward trajectory of the market.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Sulphuric Acid market experienced a notable price increase, attributed to several pivotal factors. The quarter witnessed a sustained rise in production costs due to stable yet elevated upstream Sulphur and Crude Oil prices. Additionally, the manufacturing sector's improvement, evidenced by increased new orders and employment, exerted upward pressure on Sulphuric Acid prices. Supply chain disruptions, including delivery delays and higher shipping costs, further contributed to the inflationary trends observed. The summer driving season bolstered demand for regenerated Sulphuric Acid from refineries, balancing the off-season lull in the agrochemical sector. Inflationary pressures and supply chain constraints, including potential rail strikes, exacerbated the bullish sentiment, making market participants hesitant to reduce prices.
Focusing on the USA, which witnessed the most significant price fluctuations, the market dynamics were profoundly influenced by seasonal trends and economic indicators. In terms of year-over-year comparisons, prices surged by an impressive 28%, while the quarter-over-quarter increase stood at 20%, reflecting a robust upward trajectory. The price difference within the quarter itself, marked at 13%, underscored the persistent rise in market valuations.
As the quarter concluded, Sulphuric Acid prices in the USA reached USD 125/MT (CFR Texas), highlighting an increasingly positive pricing environment. This consistent upward trend over Q2 2024 points to a robust and inflationary market scenario, driven by both demand and supply-side factors, establishing a distinctly positive sentiment in Sulphuric Acid pricing.
APAC
During Q2 2024, the Sulphuric Acid market in the APAC region experienced significant price volatility, primarily driven by a confluence of factors that heightened market sensitivity. The quarter has seen an overall inclining price trend, influenced by disruptions in supply chains, increased demand from downstream sectors, and fluctuating costs of feedstock Sulphur. The energy costs, propelled by rising Crude Oil prices, also contributed to the elevated production costs, further impacting Sulphuric Acid pricing. Additionally, geopolitical tensions and logistical constraints exacerbated the market's tightness, resulting in a constrained supply environment that pushed prices upwards. In Japan, where the most pronounced price changes occurred, the market dynamics were particularly notable. The overall trend was characterized by a bullish sentiment, largely driven by seasonal demand from the Agrochemical sector. This seasonal uptick, combined with limited inventory levels and increased freight costs, led to heightened price sensitivity. The correlation between these factors and the market’s response was evident in the significant price shifts throughout the quarter. Compared to the same quarter last year, the Sulphuric Acid prices in Japan saw a stark decline of 44%. However, when observed from the previous quarter in 2024, the prices experienced a relatively modest decrease of 6%, reflecting a more nuanced market adjustment. Within Q2 2024, the comparison between the first and second half of the quarter revealed a 27% change, underscoring the market's responsiveness to evolving supply and demand dynamics. Concluding the quarter, the latest recorded price for Sulphuric Acid stood at USD 23/MT FOB-Nagoya, Japan. Despite the fluctuations and underlying challenges, the pricing environment in Q2 2024 demonstrated a stable yet cautious optimism, balancing between supply constraints and demand pressures.
Europe
In Q2 2024, the European Sulphuric Acid market experienced a significant upward trend in pricing, driven by multiple influential factors. Predominantly, a robust maintenance schedule across European smelters limited the availability of Sulphuric Acid, creating a supply crunch. Tightened supplies of molten sulphur, a critical feedstock, further compounded this scarcity, as production from sulphur burners was constrained. Additionally, demand from the agrochemical sector remained strong due to seasonal planting activities, exacerbating the supply-demand imbalance. The economic environment, marked by inflationary pressures and increased production costs from rising crude oil prices, also played a crucial role in escalating Sulphuric Acid prices. Focusing on Germany, which observed the most pronounced price changes, the overall trend for the quarter exhibited a marked escalation in prices. This increase was significantly influenced by heightened demand from the agrochemical sector amid the crop season, coupled with insufficient inventory levels. The correlation between these factors and the upward price trajectory was evident, with prices in Germany seeing a substantial 50% increase from the previous quarter of 2024. Comparatively, the quarter witnessed a -5 % change from the same period last year, underscoring the volatility and sharp escalation within the current year. Seasonal factors, such as mid-crop season demand, also contributed to the price dynamics, with a notable 30% price increase between the first and second half of the quarter. Concluding Q2 2024, the price of Sulphuric Acid (IR Grade) FOB Hamburg in Germany settled at USD 75/MT, reflecting a predominantly positive pricing environment driven by constrained supply and robust demand. This quarter has underscored the sensitivities of the Sulphuric Acid market to both logistical and economic factors, highlighting a period of significant price inflation and market tightness.
MEA
In Q2 2024, the Sulphuric Acid market in the MEA region experienced a mixed trend. In the H1 of Q2, the Sulphuric Acid market showcased an upward price trend. This surge was attributed to multiple factors contributing to upward pressure on prices. Firstly, the rise in feedstock prices within the Sulphur market directly impacted the cost of producing Sulphuric Acid, consequently driving up its prices. Additionally, heightened production costs across the board further exacerbated the price hike for the commodity. Moreover, the Agrochemical sector experienced heightened demand, spurred by the ongoing crop season, leading to an increased need for fertilizers containing Sulphuric Acid. Compounding these factors was the ongoing Red Sea crisis, which disrupted trade routes and logistics networks, resulting in elevated freight charges and delayed shipments. However, in H2 of Q2, the Sulphuric Acid market declined which was influenced by various factors leading to a consistent decline in prices. A critical contributor to this trend was the bearish environment in the crude oil and sulphur markets, which resulted in lower production costs for Sulphuric Acid. Despite efforts by OPEC+ to stabilize crude oil prices, ongoing market pressures and extended production cuts until October 2024 led to a cascading effect that drove both crude oil and sulphur prices downward. In the United Arab Emirates, the decline in Sulphuric Acid prices was particularly pronounced. Seasonal factors, such as the completion of the harvesting stage, reduced demand from the agrochemical sector, leading to sufficient inventory levels and mitigating any supply imbalances. This equilibrium was further facilitated by strategic adjustments in trade inflows from major suppliers to prevent oversupply. The UAE market saw a 3% decline in Sulphuric Acid prices compared to the same quarter last year and a significant 23% increase from the previous quarter in 2024. The quarter-ending price in the UAE was USD 63/MT (CFR Jebel Ali).
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American Sulphuric Acid market experienced a bearish market scenario with declining demand and stocked-up inventory levels of supply. This decrease was attributed to reduced demand from downstream Agrochemical enterprises, coupled with ample availability of existing stocks in storage facilities.
To counter the bearish market conditions, industry players opted to lower their ex-quotations and extend offers to attract buyers to increase their purchasing activities. Despite these efforts, buyers remained cautious and reduced their procurement due to concerns about potential losses in the sluggish market and went towards on-demand procurement.
In the feedstock market, the decline in Sulphur prices played a supporting role in stabilizing Sulphuric Acid prices in the US market. Analyzing the spread, the difference between Sulphur and Sulphuric Acid narrowed, indicating a bearish sentiment in the US Sulphuric Acid market. Regarding the US economy, while inflation has notably decreased from its peak in mid-2022, it still surpasses the Federal Reserve's targeted level of 2%. The central bank is forecasted to commence reducing borrowing costs by the end of June, with expected cumulative reductions ranging from 0.75 percentage points to 1 point throughout 2024. The Federal Reserve's last interest rate hike occurred in the summer of 2023, and historically, rate cuts typically commenced approximately 8½ months later following prior cycles of interest rate increases.
APAC
During the first quarter of 2024, the Sulphuric Acid market in the APAC region showcased bearish market scenarios. The sulphuric Acid market showcased a bearish situation due to the weak demand from the downstream agrochemical enterprises and high inventory levels in the storage facilities. Nevertheless, the manufacturing units decided to reduce their production rate to avoid the oversupplying of the product. High inventory levels in the storage units made the market players lower their prices for the commodity so that the purchasing activities by the buyers could be raised. However, they remain hesitant to increase the purchasing activities to avoid possible future losses. The sluggish demand from the downstream agrochemical sector resulted in an unfavorable situation for the market players as they had to sacrifice their marginal profits. Furthermore, in March, at the Bank of Japan's March meeting, a summary of opinions revealed that many policymakers felt it necessary to proceed cautiously in withdrawing ultra-loose monetary policies. During the decision-making process to terminate negative interest rates last week, there was a division among board members regarding the economy's resilience to withstand the transition.
Europe
During the first quarter of 2024, the European Sulphuric Acid market experienced a bearish trend with an abundant supply of the commodity. Several factors influenced the market, including a decrease in demand from the Agrochemical sector due to the seasonal slowdown, lower prices in the feedstock Sulphur market which resulted in reduced operational costs, and steady demand from the industrial sectors. Despite these factors, no plant shutdowns occurred during this period. Germany, the largest market for Sulphuric Acid in Europe, witnessed a 6.25% decline in prices due to lower demand from the Agrochemical sector and sufficient existing inventories. The market trend remained bearish without any significant seasonality or correlation. Compared to the same quarter in the previous year, prices declined by 47%, while a 9% increase was observed compared to the previous quarter. In terms of price comparison, the first half of the quarter showed a 25% increase compared to the second half. The supply and demand equilibrium was hampered due to the ongoing protests in the European countries. However, the inventory levels were sufficient, therefore, the hampered trading activities did not affect the prices of the commodity.
MEA
The Sulphuric Acid market in the MEA region faced various factors that influenced prices and market dynamics during Q1 2024. An oversupply of the commodity initially led to a bearish trend, prompting suppliers to offer discounts to clear excess stock. This resulted in a decline in prices. Furthermore, the sluggish demand from the downstream agrochemical sector contributed to the slow consumption rate of Sulphuric Acid, exacerbating the imbalance between supply and demand. In contrast, the prices of the feedstock, Sulphur, followed a downward trend during this quarter. This reduction in operational costs for Sulphuric Acid producers helped alleviate some of the market pressures. However, in February and March, the Sulphuric Acid market showcased an upward price trend due to Insufficient supplies of Sulphuric Acid in storage units led to a boost in production rates to meet growing demand from the Agrochemical sector. This increase aimed to achieve a balance between supply and demand. Additionally, rising Crude Oil prices in the upstream market led to increased energy costs, consequently elevating the overall production expenses of the product. But the Red Sea conflict is adding pressure both upwards and downwards, depending on the FOB or CFR side of the deal. Suppliers were not willing to absorb the entire elevated freight rate cost associated with the Red Sea delays and diversions so consumers had to absorb some of the cost to ensure product delivery, particularly from the Middle East where price indications were already rising.
For the Quarter Ending December 2023
North America
The North American region experienced a bearish market situation for Sulphuric Acid in the current quarter of 2023 (Q4). The limited utilization of existing inventories and lackluster demand from downstream agrochemical enterprises resulted in a decline in prices. Moreover, market fluctuations and a decline in the price trend of its upstream Sulphur market further affected the commodity's price trend.
In the United States, which had the most significant changes in prices, the trend was negative, with a 10.7% decrease in prices from the previous quarter. However, the percentage change from last year's same quarter was -70%. Additionally, there was a -6% price percentage comparison between the first and second half of the quarter in the USA. There were no plant shutdowns during the quarter.
The latest price for Sulphuric Acid FOB Linden NJ in the USA for the current quarter is USD 64/MT. Despite the stability observed in the price trend of the upstream Sulphur market, which aided in maintaining operating costs, Sulphuric Acid prices experienced a decline due to weak demand and limited market fundamentals. Insufficient existing inventories in storage units may result in increased demand leading to an incline in the price trend of the commodity.
Asia
The Sulphuric Acid market in the APAC region witnessed a bearish trend in Q4 2023 with low demand from the downstream agrochemical enterprises. The buildup of inventories due to decreased demand and reduced trade between overseas countries resulted in declining prices for the commodity.
However, the market situation was stable in India due to consistent demand from the domestic market and the equilibrium between supply and demand. In Japan, the market situation was bearish, with the limited depletion of Sulphuric Acid inventories in storage facilities due to a sluggish consumption rate resulting in a abundance of the commodity. The depletion in demand from downstream agrochemical enterprises led to an decrease in production rate by producers to meet the market needs.
The primary reason for the feeble demand was the limited need for restocking of inventories with low market trades within the APAC region. Japan witnessed a price percentage change of -33% from the previous quarter, a price percentage comparison of -18% between the first and second half of the quarter, and a price percentage change of -87% from the same quarter last year. The quarter ended with the quarter-ending price of USD 35/MT FOB-Nagoya in Japan for Sulphuric Acid.
Europe
In the fourth quarter of 2023, the Sulphuric Acid market in Europe faced a bearish trend. The market was influenced by several key factors. Firstly, there was an increase in bulk trading and consumption from the derivative market, leading to high operating costs.
Additionally, the gradual improvement in the Sulphuric Acid market contributed to the overall price trend. However, the market was negatively impacted by the increase in transportation fuel costs, which added to the end product's expenses. The price of Sulphuric Acid showed a decline reaching USD 59/MT (IR Grade) FD Antwerp in Belgium. This represents a 6.5% decrease compared to the previous quarter and a significant decrease of -71% compared to the same quarter in the previous year.
Overall, the Sulphuric Acid market in Europe experienced a challenging quarter with various factors influencing prices. Therefore, the overall price trend experienced a decline in Q4 due to the sluggish demand from the downstream agrochemical enterprises along with the sufficient inventory levels in the storage facilities.
MEA
The fourth quarter of 2023 witnessed a bearish trend in the Sulphuric Acid market in the MEA region. The high supply and low demand from the downstream agrochemical industry led to a decline in trading activities among significant manufacturing units. The low demand from the downstream enterprise was fulfilled by the existing inventories.
The low demand for the commodity reduced the consumption of existing inventories in the storage units, with no need to restock the commodity. Saudi Arabia experienced a maximum change in price with a decline of 13% from the previous quarter. The price trend showcased a negative correlation with a change of -54% from the same quarter last year.
The price percentage comparison of the first and second half of the quarter for Saudi Arabia showed a decline of 2%. The stable production rate of Sulphur played a significant role in keeping the operating cost constant. The surge in demand from the downstream agrochemical enterprise may result in a price hike for the commodity. The insufficient existing inventories in the storage units may result in increased demand leading to an incline in the price trend of the commodity. The latest price of Sulphuric acid spot ex-Jeddah in Saudi Arabia at the end of the quarter was USD 60/MT.
