Liquid Sulphur Dioxide price declined in Feb 2024 amid lower feedstock price and weak downstream market demands

The price of the Liquid Sulphur Dioxide witnessed a declining trend in February 2024. This reduction in the price of the Liquid Sulphur Dioxide is majorly attributed to the reduction in the price of the feedstock particularly Sulphur. The lower downstream Agrochemical market witnessed a lower run globally due to which the Liquid Sulphur Dioxide’s derivative particularly Sulphuric Acid demand got affected and the declining feedstock price resulted in lowering the production cost in effect with the ample of inventories among the suppliers which has particularly into influencing the price of the Liquid Sulphur Dioxide in the market.

In February, the European market experienced a challenging downward trend in the price of Liquid Sulphur Dioxide. Adding to the complexities, ongoing farmer protests in Germany, which began in December 2023, have spread across European countries. These protests are a response to government policies aimed at increasing the costs of energy, fertilizer, and transport. The repercussions have the potential to disrupt not only the agricultural sector but also the transport industry, impeding the overall supply chain and affecting the regional economy. Despite these challenges, existing inventories have proven sufficient to meet the growing demand from the downstream Agrochemical sector. Simultaneously, efforts to restock the product are underway to ensure the smooth functioning of the supply chain. This delicate balance between supply and demand underscores the resilience of the market, navigating external disruptions and maintaining stability amid turbulent conditions in the European region.

In the US market, the recent downtrend in Liquid Sulphur Dioxide prices reflects a significant development shaped by various market forces. A pivotal factor influencing this trend is the widespread reduction in Sulphur prices. The surplus in Sulphur availability has translated into lower production costs for Liquid Sulphur Dioxide, contributing to the observed decline in prices. Moreover, diminished demand from the Agrochemical sector has added to the downward pressure on Liquid Sulphur Dioxide prices. Reports from major players in the Agrochemical industry indicate a substantial decline in Q4 volumes, primarily attributed to sluggish demand and the decreased cost of feedstock. Consequently, suppliers have amassed notable inventories, impacting the overall demand for Liquid Sulphur Dioxide in the regional market.

According to ChemAnalyst projections, a bearish trend is anticipated for Liquid Sulphur Dioxide prices. The European fertilizer industry is already grappling with the ramifications of halted production, job losses, and investment leakage. The confluence of lower Sulphur prices and substantial inventories among suppliers has led to increased supply and reduced production costs, a trend expected to persist in the upcoming sessions. Continuous destocking by suppliers has further fueled the ongoing downtrend in price action, dissuading market participants from actively initiating fresh bids for accumulation. These pivotal factors, including decreased demand and a surplus of inventory, are poised to exert downward pressure on Liquid Sulphur Dioxide prices in the market. As the industry contends with these challenges, stakeholders are closely monitoring the evolving landscape for insights into the future trajectory of Liquid Sulphur Dioxide pricing.