Category

Countries

Sulphur Market Fluctuations: Global Trends Reflect Supply-Demand Disruption
Sulphur Market Fluctuations: Global Trends Reflect Supply-Demand Disruption

Sulphur Market Fluctuations: Global Trends Reflect Supply-Demand Disruption

  • 16-Apr-2024 2:01 PM
  • Journalist: Sasha Fernandes

Doha, Qatar: The prices of Sulphur are witnessing a fluctuation in their trend in the global market. In the Middle Eastern and the US Sulphur markets, the prices are showcasing an upward trend due to the increase in the demand from the downstream Agrochemical and Rubber Vulcanisation sectors and insufficient existing inventory levels in the storage units. However, in the Asian market, the prices of Sulphur are experiencing a steady situation due to the maintained equilibrium between supply and demand.

In the Middle East, the prices of Sulphur are experiencing an increase in their trend as the Middle East observes Eid festivities, which resulted in a noticeable absence of confirmation regarding new business activities. Furthermore, there are no reports of Sulphur tenders being issued by the producer. In the Qatar market, the prices are witnessing an incline and during the week ending on 12th April 2024, the prices inclined by 3.75% and settled at USD 83/MT (FOB-Doha). In terms of the upstream market, the prices of Crude Oil also increased this week and resulted in the increased production cost of Sulphur, contributing to the increase in the prices of the commodity. Furthermore, the demand for Sulphur from the downstream Agrochemical and Rubber Vulcanisation enterprises is increasing from the domestic as well as the overseas markets, therefore, the consumption rate of the existing inventories is also increasing, and the trading activities from the Qatar market to the overseas market increased to meet the rising demand from the downstream sector.

Additionally, the Red Sea disruption is still in continuation resulting in the delayed transportation of the cargo as the Hamas-based Youthis are still attacking the coming cargo and causing disruption. Therefore, the traders are continuing their trades via the Cape of Good Hope.

Similarly, in the US market, an increase in the prices of Sulphur is observed due to the disruption in the supply and demand equilibrium. The existing inventory levels are proving to be insufficient to meet the heightened demand for Sulphur from the downstream Agrochemical and Rubber Vulcanisation enterprises. Therefore, the trades from the Canadian market to the US market are increasing with the hope of attaining the supply-demand equilibrium through a smooth supply chain for Sulphur. Additionally, the production cost of Sulphur is also inclining due to the increased Crude Oil prices. In terms of the spread, the difference between Crude Oil and Sulphur widened indicating the bullish market scenario for the commodity.

However, the prices of Sulphur are observed to be stable in the Singapore market during the week ending on 12th April 2024. Despite the inclining trend of Sulphur in the Qatar market, the prices of the commodity in the Singapore market are witnessing a stable trend due to the moderate demand from the domestic downstream Agrochemical and Rubber Vulcanisation enterprises and an adequate amount of inventory levels present to meet the demand. In terms of the economic indicators, According to preliminary estimates released by the Ministry of Trade and Industry (MTI), Singapore's economy expanded by 2.7% year-on-year in the first quarter of 2024. Within this period, the manufacturing sector saw a growth of 0.8% compared to the same period last year, which represents a slight slowdown from the 1.4% expansion recorded in the preceding quarter.

According to ChemAnalyst, Sulphur prices are anticipated to increase due to the surge in the demand from the downstream Agrochemical and Rubber Vulcanisation enterprises along with the supply chain disruption due to the Red Sea attack by the Hamas-based Youthis.

Related News

BASF and NGK Unveil Enhanced Sodium-Sulfur Batteries NAS Battery NAS MODEL L24
  • 12-Jun-2024 4:19 PM
  • Journalist: Li Hua
Global Sulphur Market Trends: Stability Amidst Regional Disruptions and Demand Fluctuations
  • 03-Jun-2024 3:05 PM
  • Journalist: Yage Kwon
Fluctuations in Global Sulphur Market Amid Supply-Demand Imbalance and Geopolitical Challenges
  • 16-May-2024 2:27 PM
  • Journalist: Patricia Jose Perez
Stable Sulphur Market Amidst Global Economic Uncertainty and Supply Challenges
  • 02-May-2024 2:35 PM
  • Journalist: Sasha Fernandes