Indian Crude Oil Market Faces Short-Term Dip, Liquid Sulphur Dioxide Market Holds Steady

Although the Crude Oil sector experienced a moderate dip of 1.1% within the last week, mainly due to Bharat Petroleum's drop of 2.4%, the sector has sustained a commendable growth rate of 3.4% during the preceding twelve months in the Indian market. Market analysts have projected a favorable outlook for the sector, estimating an annualized expansion of 7.8%. Contrariwise, the downstream Agricultural industry based on Liquid Sulphur Dioxide has exhibited exceptional growth over the prior three years, with earnings escalating at an annual pace of 17% and corresponding revenue increments of 11% annually. This remarkable performance can be credited to heightened sales efforts implemented by firms functioning within this realm, leading to augmented profit margins. However, despite ample stocks of Liquid Sulphur Dioxide held by regional traders and reasonably steady supply chain circumstances, the regional market remains balanced due to fluctuations in the global petrochemical market and decreasing crude oil rates.

In India, the Liquid Sulphur Dioxide market has persisted, characterized by stable supply chain conditions featuring observable shipping market conditions. Even though inventory levels of Liquid Sulphur Dioxide with regional traders are currently considered sufficient, the cost of Liquid Sulphur Dioxide has substantially reduced in the Indian market, falling to USD 298/ton Ex-Ahmedabad in the July market as evidenced by accessible trade data. Demand from downstream fertilizer, Sulphuric acid, and preservative sectors has recently abated in the region. Potential alterations in customer inclinations or changes in demand patterns for merchandise comprising Liquid Sulphur Dioxide might affect pricing.

Investors seem to be exercising caution when assessing the downstream Indian Fertilizers and Agricultural Chemicals industry, anticipating its long-term growth prospects to remain unaffected. The industry's valuation lingers close to its 3-year average Price-to-Earnings (PE) multiple of 17.5 times, while its existing Price-to-Sales (PS) multiple of 1.0 times trails behind the 3-year average PS multiple of 1.3 times. Moreover, the accessibility of feed Ammonium Bisulphate in the Indian market has been influenced by amplified product acquisitions to fabricate Liquid Sulphur Dioxide, as shown by trade data in the region.

The shipment situation was moderate enough to keep pace with the traders' and the merchants' demand for Liquid Sulphur Dioxide from the downstream market. Despite the recent economic downturn caused by the pandemic, there is a strong likelihood that the supply side will eventually become more robust and aid in stabilizing prices across various markets in the long term. Ascertained by reliable sources, these improvements should assist the recovering economy in maintaining costs within reasonable limits through extended periods. These developments offer greater assurance regarding future market trends of Liquid Sulphur Dioxide compared to earlier projections.