Bullish Upstream Cost Contributes to Elevation in the Middle-Eastern Sulphur Market

Abu Dhabi, UAE- In the Middle-East market, Sulphur prices are increasing due to the disruption in the demand from the downstream Agrochemical sectors sector. Regarding the export market, the price trend of Sulphur in the United Arab Emirates (UAE) and Qatar is surging gradually due to the elevation in its upstream Crude Oil market from the past few weeks amid the ongoing Israel-Hamas conflict. In terms of the import market, the price trend in Morocco has been constant in the past few weeks due to the moderate demand from the downstream Agrochemical enterprises and sufficient inventories among the storage units.

In the Middle East region, a surge in the price trend of upstream Crude Oil led to an increased production cost of Sulphur, contributing to the price hike. Furthermore, the demand from the downstream Agrochemical enterprises is gradually increasing, resulting in an elevation in the price trend for the commodity. In UAE and Qatar, a slight increase in the prices of Sulphur has been recorded with the price trend of USD 91/MT (FOB-Abu Dhabi) and USD 105/MT (FOB-Doha), with the week ending on October 27, respectively. As the cost of its Crude Oil enhanced due to the ongoing Israel-Hamas conflict, the situation seems to be tense, making it difficult to transport Sulphur to Morocco.

In Morocco, despite the increase in the price trend from upstream Crude Oil and the difficulty in the transportation of Sulphur from UAE and Qatar to Morocco, the price trend of the commodity in Morocco remains stable. The stability in the price trend was contributed by deteriorating demand from the downstream Agrochemical enterprises, which is manageable by the existing inventories among the storage units. Considering the weak market situation, the suppliers declined their offers and bids; instead, they kept their prices constant to enhance their sales since the buyers in the region avoided buying any more inventories to avoid the oversupplies of Sulphur in the storage units.

According to ChemAnalyst, the prices of Sulphur are anticipated to incline in the upcoming few weeks due to the Hamas conflict, which can create hurdles in the transportation of Sulphur from UAE and Qatar to Morocco. Furthermore, Saudi Arabia and Russia are anticipated to cut off the supplies of the upstream Crude Oil enterprise. Additionally, the World Bank has released a warning that even a small disruption in the supplies of Crude Oil because of the Israel-Hamas conflict can lead to the removal of 500,000 to 2 million barrels a day from the global markets.