For the Quarter Ending September 2024
North America
In Q3 2024, the North American carbon disulphide market experienced mixed trends, with prices initially declining in July before showing signs of recovery in August. In July, prices decreased due to limited cost support from feedstock sulphur and sluggish domestic demand from downstream sectors like cellophane and carbon tetrachloride. The consumption from key end-user industries was slower than anticipated, which contributed to bearish market sentiment. Export demand also weakened amid macroeconomic challenges, leading to a wait-and-see approach among market participants regarding inventory replenishment.
By August, the market shifted to a bullish sentiment as carbon disulphide prices strengthened due to tight supplies resulting from cracker outages and reduced production rates at several facilities. The cost support from sulphur became more pronounced, facilitating price increases despite volatility in upstream crude oil futures. Demand from the downstream sector remained moderate, with stable consumption from packaging and textiles, while export demand, particularly from Mexico and Latin America, saw a notable uptick. The prices of Carbon disulfide FOB Houston assessed in September 2024 were around USD 780/MT.
Supply dynamics continued to be a concern, with manufacturers facing challenges from plant shutdowns linked to Hurricane Beryl and ongoing negotiations between labor unions and maritime alliances threatening future supply chain stability. The U.S. Manufacturing Purchasing Managers' Index indicated a continued contraction, reflecting ongoing weaknesses in the manufacturing sector. Overall, the carbon disulphide market in North America faced challenges but showed resilience amidst shifting demand and supply conditions.
APAC
In Q3 2024, the Asia-Pacific (APAC) carbon disulphide market faced significant pressures, with prices remaining flat across key regions like China due to a combination of oversupply and weak downstream demand. Despite rising sulfur costs, the impact on carbon disulphide prices was minimal as sluggish demand from sectors such as cellophane and carbon tetrachloride persisted. China’s economy grappled with low domestic consumption and external trade challenges, which hindered industrial momentum and dampened growth expectations. Even with economic support measures, including interest rate cuts, the effectiveness was limited.
Production rates across APAC were adjusted downward to balance with tepid demand, with Chinese manufacturing PMI figures indicating ongoing contraction. Disruptions from Typhoon Gaemi further impacted supply chains, creating moderate congestion at ports and lengthening transit times. China’s industrial output grew below expectations, reflecting seasonal and environmental challenges. These conditions contributed to a cautious market atmosphere, where stock replenishment remained limited. The prices of Carbon disulfide FOB Shanghai assessed in September 2024 were around USD 620/MT
Demand dynamics were similarly low, with domestic and export markets reflecting conservative buying behavior. Limited transactions and reduced spot market activities indicated the broader market's hesitance, while stable but low purchasing rates from overseas further emphasized stagnant demand. APAC’s carbon disulphide market outlook remains bearish, with few signs of short-term recovery.
Europe
In Q3 2024, Europe’s carbon disulphide market showed significant tightening, driven by rising freight costs, constrained imports, and production challenges, particularly in Germany. After a steady period, prices began increasing in July as curtailed import volumes from Asia compounded already limited domestic supply. Shipping rates from Asia to Europe have soared, with 40-foot container rates surpassing USD 8,000, adding pressure on supply chains and deterring imports. Additionally, manufacturing slowdowns across Germany, combined with supply chain disruptions stemming from regional conflicts and heightened port congestion, further constrained carbon disulphide availability.
Demand remained moderately strong from key industries, including cellophane, carbon tetrachloride, and textiles, as the viscose and rayon markets maintained a steady pull on carbon disulphide. While consumer sentiment was somewhat dampened by rising inflation and cautious economic outlooks, need-based purchases sustained overall demand, particularly as some players looked to preemptively restock amid concerns over sulfur market disruptions. Despite a weak economic environment, downstream interest remained stable to slightly bullish. The prices of Carbon disulfide FD Hamburg assessed in September 2024 were around USD 970/MT.
European inflation rates and labor tensions also influenced market conditions. Inflation in Germany, the EU’s largest economy, rose to 2.5% in July, raising concerns over consumer spending and impacting European Central Bank policy discussions. Labor unrest in European ports contributed to congestion, extending vessel waiting times and leading to sporadic supply interruptions. Overall, Q3 2024 saw European carbon disulphide prices firming, with limited relief expected in the near term.
For the Quarter Ending June 2024
North America
In the North- American market Carbon disulphide prices have witnessed a mixed trend during the second quarter of 2024. During April and May, Carbon disulphide prices have inched higher in the US market. The feedstock Sulphur prices have increased which resulted in the low manufacturing cost of Carbon disulphide, leading to an upward shift in the price realization of Carbon disulphide in the domestic market. On the demand front, the inquiries from the downstream packaging, and agrochemical industry were relatively moderate in the domestic market.
Most market transactions were mainly based on a need-on-demand basis. In the meantime, demand from the overseas market has improved amidst replenishment activity which promoted the manufacturers to raise their prices in order to gain profit margins. Meanwhile, the US Federal Reserve has maintained its key rate at 5.3%, the highest in 23 years, to address persistently high inflation, which peaked at 9.1% in June 2022. Despite some moderation, inflation remains elevated, and there has been limited progress toward the central bank's goal. Furthermore, due to low production material availability was observed on the lower end which further uplifted the prices of Carbon disulphide.
However, after experiencing a bullish rally in the last two months, Carbon disulphide prices have declined during June 2024 supported by weak derivative demand. The fragile buying sentiment surrounding the market was further dampened by sharp volatility in crude oil futures, coupled with a monthly loss in feedstock prices. Additionally, the sufficient supply kept surpassing downstream demand despite notably lower production rates amid the ongoing market uncertainty. The market player reported that the cost support from feedstock Sulphur was limited to Carbon disulphide as its prices persistently decreased in the domestic market, leading to bearish market sentiment of Carbon disulphide among the manufacturers. Thus, prices of Carbon disulphide FOB Texas were settled at USD 780/MT with a month-on-month decrement of 1.3% during June 2024.
Asia- Pacific
Carbon disulphide prices showcased a fluctuation across the Asian market during the second quarter of 2024. During the initial and mid of Q2 of 2024, Carbon disulphide prices rose in the Chinese market in the wake of tight supply and improved demand dynamics. However, cost support from feedstock Sulphur was limited on Carbondisulphide as its price settled on the lower end. Nonetheless, it was insufficient to drive the price realization of Carbondisulphide to a lower end in the domestic market. In addition, the domestic demand for Carbondisulphide from the downstream agrochemical and packaging industry has improved albeit at a smaller pace which encouraged the manufacturers to revise their prices. At the same time, demand from the overseas market has also been observed on the higher end in an effort to restock the inventories. As per the market source, China’s exports in May grew at their fastest pace in more than a year despite trade tensions, exports jumped 7.6% in May, compared with the May 2023. Furthermore, operating rates have remained low and as a result, material availability was limited to meet the downstream demand. Many manufacturing firms also shut down for maintenance during the May Day holiday, leading to decreased production of Carbon disulphide.
However, towards the end of Q2 of 2024, Carbon disulphide has significantly declined in the domestic market amid low trading activity, with buyers reluctant to commit to transactions. Despite the strong energy prices, the raw material Sulphur prices have decreased, which resulted in the low production cost of Carbon disulphide in the domestic market, keeping the prices downward in the domestic market. In addition, the demand for Carbon disulphide from the downstream agrochemical, and packaging industry has remained consistently subdued, with market players gearing for the summer downturn amid seasonal holidays. The spot market transactions were also muted, with buyers remaining on the sideline, which weighed down the prices of Carbon disulphide. Thus, prices of Carbon disulphide FOB Shanghai were settled at USD 680/MT with a monthly declination of USD 45/MT during June 2024.
Europe
Carbon disulphide prices have continued to decline across the German market during the second quarter of 2024. The cost support from feedstock Sulphur was limited to Carbon disulphide as its prices settled on the lower end, contributing to a downward shift in the price realization of Carbon disulphide in the domestic market. Although, upstream crude oil prices have showcased fluctuation throughout the quarter. Furthermore, underlying weakness in the domestic Carbon disulphide market continued to call for limited demand from the downstream agrochemical and packaging industry. Converters still preferred to buy on a need basis, while buying interest was further declined amid macroeconomic headwinds in the domestic market. Overall, subdued downstream demand, contributing a bearish market sentiments of Carbon disulphide among the manufacturers. In the broader economic context, German inflation fell more than expected in June, resuming its downward trend after two consecutive months of increases, and leaving the door open for another rate cut by the European Central Bank in September. Furthermore, decline in inflation would not affect Carbon disulphide demand within the downstream industry in the short term. Despite the low operating rates, the material availability was abundant to meet the existing downstream demand which weighed down the prices of Carbon disulphide in the domestic market. Therefore, prices of Carbon disulphide FD Hamburg were settled at USD 830/MT with a monthly decrement of 5.7% during June 2024.
For the Quarter Ending March 2024
North America
Carbon Disulphide prices in the North American market displayed varied trends in the first quarter of 2024. In January, prices surged in the US market due to reduced operating rates during the holiday season and sluggish demand, leading to limited product availability and prompting manufacturers to raise prices to maintain profit margins. Despite this, demand from downstream industries like packaging, agrochemicals, and perfumes remained stable, supported by consistent consumption from end-users.
However, disruptions in shipping routes and severe weather conditions caused delays in supply and increased transportation costs. However, in February, after a bullish rally the previous month, Carbon Disulphide prices declined in the US market. Soft demand from downstream industries, particularly agrochemicals, dyes, and perfumes, coupled with decreased feedstock Sulphur prices, led to reduced production costs, leading the bearish market sentiments among manufacturers.
Despite improved domestic production rates and sufficient material availability, prices continued to trend downward. Although, March witnessed a reversal in the price trend as Carbon Disulphide prices strengthened in the US market. Rallying crude oil futures and production disruptions drove price hikes, fuelled by increased feedstock Sulphur prices and strong crude oil prices throughout the month. This resulted in higher production costs for Carbon Disulphide in the domestic market, contributing the upward shift in the price realizations of Carbon disulphide.
Asia- Pacific
Prices of Carbon disulphide have witnessed a mixed trend in the Asia- Pacific region during the first quarter of 2024. During the first half of 2024, Carbon disulphide prices have inched lower in the Chinese market. The cost support from feedstock Sulphur was limited on Carbon disulphide prices as its prices settled on the lower end in the given time frame. These supported the prices to follow a downward trend in the domestic market. In addition, demand for Carbon disulphide from the downstream agrochemical, perfume, and packaging industries has remained average with a limited instance of the new order reported by market players weighing down the prices of Carbon disulphide in the domestic market. Meanwhile, inquiries from overseas markets have also softened amid macroeconomic headwinds which further refrain the manufacturers from raising their exporting prices. Furthermore, the Lunar New Year combined with a weakness in downstream businesses has prompted more factories to shut down earlier to prepare for family union visits, preventing a meaningful improvement in demand. In addition, China’s second-largest economy was contending with weak consumer demand and slowing prices. To address this, the central bank aims to maintain flexible and precise policies to boost domestic demand while ensuring price stability, amid signs of a patchy economic recovery and rising deflationary risks. On the supply side, the material availability was sufficient which further deteriorated the prices of Carbon disulphide in the domestic market. However, in the second half of 2024. Carbon disulphide prices have recovered as feedstock Sulphur prices have increased. On the other hand, the Ukrainian drone attack targeted Russia’s largest refinery at Rosneft, causing a 10% decrease in capacity. Geopolitical tensions in the Middle East, coupled with the decision by OPEC+ to cut oil supply, have led to continuous hikes in oil prices. In addition, demand from the downstream agrochemical and perfume industry was moderate in the domestic market.
Europe
Carbon Disulphide prices in the German market saw continuous increases throughout the first quarter of 2024 due to surging crude oil futures and production disruptions. Supply chain challenges stemming from the Red Sea crisis exacerbated the bullish trend. Reports from market players indicated rising feedstock Sulphur prices, resulting in elevated production costs for Carbon Disulphide and supporting its upward trajectory in the domestic market. Additionally, a Ukrainian drone attack on Russia’s largest refinery at Rosneft led to a 10% capacity decrease, while geopolitical tensions in the Middle East, along with OPEC+ decisions to cut oil supply, sustained oil price hikes. These high crude oil prices further elevated the overall manufacturing expenses of Carbon Disulphide, reinforcing bullish sentiments among manufacturers. In addition, demand from downstream sectors such as agrochemicals and perfumes remained moderate, with market transactions primarily driven by immediate needs. Moreover, the German manufacturing sector had been experiencing reduced activity since Q3 2023, as many manufacturers scaled back operations due to persistent inflationary pressures and steady demand. This reduction in manufacturing activity heightened supply-side pressure, contributing to the continuous increase in Carbon Disulphide prices throughout the quarter.
For the Quarter Ending December 2023
North America
Carbon disulphide prices in the US market displayed mixed sentiments during the final quarter of 2023. In the early part of Q4 2023, Carbon disulphide prices rose domestically. The increase in feedstock Sulphur prices led to a higher production cost of Carbon disulphide, fostering bullish market sentiments among manufacturers. On the upstream side, Natural gas prices remained positive throughout the month, with a reported 16.1% increase in total US natural gas consumption due to cooler weather and a positive shift in demand patterns across the country.
However, towards the end of Q4 2023, Carbon disulphide prices decreased in the US market in November 2023. The insufficient cost pressure from feedstock Sulphur, as its prices settled at the lower end, led to bearish market sentiments among Carbon disulphide manufacturers. Additionally, toward the year's end, manufacturers hesitated to procure additional volumes of Carbon disulphide. In response to the observed market scenario, some Carbon disulphide companies initiated scheduled maintenance during an off-season to alleviate the pressure from a rapid uptick in inventory, thereby reducing Carbon disulphide production.
On the demand front, inquiries from the downstream agrochemical, dyes, and rubber industry remained tepid, with limited instances of new orders reported in the given time frame, supporting a downtrend in prices in the domestic market. Simultaneously, demand from the overseas market was observed on the lower side, reflecting weak buying appetite among consumers. Furthermore, in November, U.S. inflation experienced another decrease, primarily due to reduced gas prices, further mitigating the impact of consumer price rises in the country. Additionally, anticipating successive reductions in inflation, the US Federal Reserve chose to keep its key interest rate unchanged at 5.25%-5.50% for the third consecutive time.’
Asia-Pacific
Carbon disulphide prices have sustained a downward trajectory in the Chinese market throughout the final quarter of 2023. The Carbon disulphide market in China is encountering challenges characterized by an increase in supply, declining costs, and notably, persistently sluggish demand. Market players have reported a decrease in feedstock Sulphur prices over the quarter due to weak procurements from end-user industries, resulting in a reduced manufacturing cost of Carbon disulphide in the domestic market. This decline in production costs has prompted manufacturers to maintain low prices across the market. On the demand front, inquiries from downstream agrochemical, dyes, and rubber industries have been slower than expected, as consumption from the end-user sector has not yet improved in the domestic market. This has led to bearish market sentiments for Carbon disulphide among manufacturers. Moreover, the tepid demand continues to exert pressure on the seller's side, with buyers either making limited purchases when necessary or adopting a wait-and-see perspective in anticipation of potential further declines. The downturn in downstream demand could be attributed to underperforming end businesses and economic uncertainties globally. Simultaneously, demand from the overseas market has also remained subdued, as buyers refrain from actively stocking up on the material, further contributing to the decline in Carbon disulphide prices. On the supply side, amidst the destocking season towards the year-end, manufacturers have been prompted to keep prices at low levels within the domestic market.
Europe
Carbon disulphide prices witnessed a decline in the German market throughout the fourth quarter of 2024. The decrease in both raw material prices and subdued demand exerted downward pressure on domestic Carbon disulphide prices. The prices of feedstock Sulphur decreased, contributing to the overall reduction in the manufacturing cost of Carbon disulphide within the domestic market. Simultaneously, the energy-intensive industry sector in Germany displayed minimal signs of recovery, remaining largely stagnant throughout the year. The relatively mild onset of winter negatively impacted gas demand across the European market, leading to a decline in demand and abundant availability of TTF Natural Gas. Consequently, this caused prices to plummet, thereby reducing the production costs of Carbon disulphide within the domestic market. Moreover, demand for Carbon disulphide from the downstream agrochemical, dyes and rubber industry remained tepid, with market players reporting limited instances of new orders. This contributed to bearish market sentiments among manufacturers. Tighter financing conditions and weakening domestic demand were critical factors contributing to the slowdown in business activity for Carbon disulphide in recent quarters. Persistent inflationary pressures also adversely affected the purchasing power of consumers, resulting in reduced purchases from downstream industries. Manufacturing firms operated at reduced rates as demand from the downstream industry had not fully recovered in the domestic market. Additionally, the German manufacturing Purchasing Manager Index figures indicated continued deterioration, reflecting slow economic data and lower-than-usual consumption in all downstream segments. Despite these challenges, material availability remained sufficient to meet overall downstream demand.
