An Upswing in the US Insoluble Sulphur Market, While the Chinese Market Remains Flat

Texas, US: On one hand, where the Insoluble Sulphur prices are stagnant in the Chinese market; on the other, it is rising significantly in the US market. During the week ending on 12th May, the Insoluble Sulphur prices notably surged by 8.2% in the US market, while its prices remained unchanged in the Chinese market. As per market experts, The USA Insoluble Sulphur market is mainly demand driven lately, while the Chinese market is more influenced by the upstream side.

Though the downstream demand has recently been observed to be reviving once again, the Insoluble Sulphur price remained unchanged in China due to the balanced supply-demand ratio and stagnant upstream costs. The Supply rate for Insoluble Sulphur in the Chinese market sufficiently catered to the available demand, keeping its prices in check. Furthermore, the cost of feedstock Sulphur was steady one week before the considered week, which kept the manufacturing cost of Insoluble Sulphur consistent. The prices of feedstock Sulphur are stable in the Chinese market because the equipment used by the producer of Sulphur was in good working order, the market supply was balanced, and the performance of the final industry was average. Because of the limited downstream demand, purchases were primarily made in response to it. The trading environment was relaxed, and Sulphur refineries were busy shipping. The Sulphur market is currently on a wait-and-see basis.

However, a sudden and drastic change was observed in the USA automotive industry recently, which has been impacting the Insoluble Sulphur market. Despite a fall in automobile retail sales, wholesale sales rose along with a rise in the industry's Seasonally Adjusted Annual Rate (SAAR), which led to a week's worth of greater demand for Insoluble Sulphur and supported the growth in its market value.

As per ChemAnalyst's anticipation, "The price of Insoluble Sulphur is likely to move upwards in both China and the USA as soon as June starts. It has been predicted that a revive in the downstream automotive industry would back up the hike in Insoluble Sulphur price."