Middle East and Southeast Asia to Continue Bearing Pressure of High Sulphur Prices
- 06-Jan-2022 2:56 PM
- Journalist: Li Hua
Sulphur prices in Middle East and Southeast Asia have registered consistent climb in the past few months owing to the favorable demand prospects amidst the limited output. As majority of crude and Sulphur is exported from Middle East to the global market, high export demand at times of uncertainty in crude output from OPEC and allies, along with the logistic issues has continued to restrict the supply of Sulphur.
As per the released reports, primarily cause of high export prices in the second half of 2021 have been the port restrictions in China which eventually led to low container availability and high freight rates. It has been revealed that the availability of Sulphur in Southeast Asia has remained tight throughout 2021, owing to the halt in Sulphur production in Petroleum Nasional Bhd refinery and the supply cut at Melacca refinery in Malaysia.
Consistent rise in Sulphur prices in the last six months has compelled buyers to restrain from indulging in bulk buying as their overall margins have already declined to concerning levels. In several countries in Asia, fertilizer producers have even cut their production owing to the limited availability of Sulphur.
In line with the favorable demand and limited availability, traders based in Qatar have again revealed a surge in Sulphur prices by nearly 4% in early January. As Qatar is among the key exporters, the rise is likely to be visible on the overall export prices in the domestic as well as international market.
As per ChemAnalyst,” recent announcement of the rise in crude output by OPEC and other allies is likely to gradually assist in improving the availability of Sulphur across Middle East and Southeast Asia. However, expectations of high demand prospects in the fertilizer industry may restrain the ease in its prices in Q1.”