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Sulphur Prices Grow Amidst Rising Crude Oil Costs in Germany
Sulphur Prices Grow Amidst Rising Crude Oil Costs in Germany

Sulphur Prices Grow Amidst Rising Crude Oil Costs in Germany

  • 12-Jan-2023 3:57 PM
  • Journalist: Shiba Teramoto

As Germany's domestic oil and gas resources are depleted, or their extraction is too expensive, it still relies heavily on fossil fuel imports despite the Energiewende project. With Russia's war on Ukraine at the forefront of the debate, renewable energy is seen as a solution to the import dependency on Sulphur. Oil is mostly used as a transportation fuel, and only a small fraction is used for power production. The supply chain in Germany is planning to expand its markets within the Asian market, thus putting cost pressure on the improvement of performance in logistics.

Sulphur pricing sentiment remains bullish amid record-high downstream Sulphuric and Phosphoric Acid prices. The announcement of fertilizer export restrictions from Russia is seen as tightening global Sulphur availability. The prices of Sulphur are anticipated to grow in the German market during January with a market value of USD 166/ton FOB Hamburg as sourced by the ChemAnalyst Research Team data. The prices of Sulphur in the German market were rising due to an increase in production cost within the domestic market, affecting the product market sentiments.

Natural Gas demand is weakening due to the energy transition as efficiency increases in the German marketplaces affecting the market price of Sulphur. Gas prices for consumers in Europe's largest economy are likely to remain higher for another year in the wake of the energy crisis. The procurement costs within the German market for fertilizers and feedstock Brent oil is surging due to fluctuations in the global petrochemicals market.

There has been a significant rise in the prices of imported Sulphur due to various import regulations in Germany. Thus, a rapid price increase is a challenging factor for the growth of the Sulphur market. Growing demand for fertilizers in emerging economies and a rise in the automotive and textiles sectors are driving the market. Crude Oil WTI costs are escalating by a percentage rise of 1.52% as sourced by traders and suppliers, which is also pulling up downstream Sulphur prices. High-cost pressure from the soaring crude oil prices drives the Sulphur price hike in the region. 

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