Sulphur Market Faces Bearish Trends Amidst sluggish downstream Agrochemical Sector
Sulphur Market Faces Bearish Trends Amidst sluggish downstream Agrochemical Sector

Sulphur Market Faces Bearish Trends Amidst sluggish downstream Agrochemical Sector

  • 16-Jan-2024 2:37 PM
  • Journalist: Yage Kwon

Texas, USA: The Sulphur market during this week is experiencing an bearish price trend due to the slower agrochemical sector resulting in the lackluster demand for fertilizers and adequate inventory levels. However, the prices of its upstream Crude Oil market are inclining as compared to the previous week. Furthermore, due to the lower demand from the downstream agrochemical sectors, the market players are becoming cautious and trying to sell their commodities with marginal profits, however, after unsuccessful attempts significant producer of Sulphur had to lower their Ex-quotations with supply exceeding the demand.

In the USA market, the price of Sulphur is maintaining its stability with the previous week at USD 110/MT (CFR-Texas) with the week ending on 12th January 2024. The stability in the price trend represents the supply and demand equilibrium. This market situation made the buyers hesitant about bulk procurement, instead, they are opting for on-demand procurement to avoid any further possible oversupplies resulting in the marginal loss. Therefore, the trade inflows from the Canadian market to the USA market are limited. However, the production cost for Sulphur increased due to the price hike in the upstream crude oil market but limited cost support from the downstream ventures further capped the price gain.

In the Middle Eastern market, the price trend of Sulphur is showcasing the bearishness in the market since the overall agrochemical sector is experiencing a downturn due to the lower demand for fertilizers from the downstream agrochemical market. Furthermore, the buyers are also maintaining the same drill as the previous week so that the supply chain does not get disrupted. Considering the demand from the domestic market, the production rate of Sulphur among the ventures remain moderate, that is, it is kept at the normal capacity and traders keep their quotations intact. The consumption of the inventory levels is done at a constant pace which is further followed by the consistent restocking of Sulphur.

The prices of Sulphur are showcasing the consistency in the Singaporean market as well despite the increase in the operational cost due to the crude oil prices. As a result, trading activities from the Qatar market to the Singaporean market are limited, however, the attack on the Red Sea by the Yemen-based Houthis disrupted the shipments of goods resulting in the rerouting of the ships from the Red Sea to the Cape of Good Hope, to avoid the losses of the goods and labours. Despite the disruption in the shipments of Sulphur, the prices are maintaining their stability as a sufficient amount of existing inventories are present and the equilibrium between the supply and demand is maintained.

According to ChemAnayst, the Global Sulphur prices are anticipated to showcase further decline despite the ongoing plantation season. Due to the lower demand from the downstream agrochemical sector and sufficient existing inventory levels, the prices are expected to showcase a downward trend in the short term.

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