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Insoluble Sulphur Prices remain subdued in US, China amid long Supply
Insoluble Sulphur Prices remain subdued in US, China amid long Supply

Insoluble Sulphur Prices remain subdued in US, China amid long Supply

  • 05-Apr-2024 4:23 PM
  • Journalist: Patricia Jose Perez

Texas (USA): In the US market, Insoluble Sulphur prices have seen a downward trend this week, primarily due to reduced cost support from Feedstock Sulphur. Additionally, Natural Gas prices have remained low owing to weak global demand as the heating season in Europe concludes, leading to decreased production costs. Furthermore, an excess supply has prompted sellers to offer inventories at discounted rates.

Despite an uptick in new car and light-truck deliveries in February, there is anticipation of a potential rise in Insoluble Sulphur prices due to strong demand from downstream industries. Moreover, expectations suggest that Insoluble Sulphur Feedstock Sulphur prices will increase, thereby influencing trends downstream through the value chain. Price increases for cars and trucks in the United States, which have been major contributors to inflation for nearly three years, are now slowing and even declining in some cases.

 This slowdown in price growth has lowered overall inflation and provides hope to consumers seeking more affordable vehicles. The deceleration in price increases is attributed to a significant increase in the number of vehicles available on dealer lots, following years of severe shortages. With more automobiles accessible, the pressures that previously drove prices upward are beginning to ease. Additionally, Natural Gas prices are expected to surge as the new quarter begins, possibly spurred by heightened global economic activity.

In the Chinese market, the prices of Insoluble Sulphur have remained stable, largely due to minimal support from Feedstock Sulphur costs. Sulphur manufacturers have continued normal operations, actively procuring downstream. On-site trading has been strong, with some refineries experiencing smooth shipments, resulting in sufficient sulphur inventories and consequently stable Insoluble Sulphur prices.

While demand for Insoluble Sulphur from downstream industries like rubber industries majorly used in the Automobile sector has been relatively subdued, the government is implementing new policies to bolster consumer confidence in the automobile sector. These policies involve revising car loans to encourage auto trade-ins and eliminate government-mandated minimum down payments or consumer financing for new car purchases.

Furthermore, coal prices have stayed low as the Chinese economy gradually recovers, thus reducing production costs of Insoluble Sulphur. Anticipations suggest that Insoluble Sulphur prices in the Chinese market may increase due to heightened demand from the downstream sector. This anticipation stems from positive market sentiments in the Insoluble Sulphur market expected from government initiatives in the downstream sector. Additionally, with expected rises in production costs, coal prices are likely to increase, further impacting Insoluble Sulphur prices.

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