For the Quarter Ending June 2023
North America
Carbon disulphide prices have remained volatile in the US market throughout the second quarter of 2023 backed by limited demand and sufficient inventories. The impact of the most aggressive monetary policy tightening in decades, and the expected slowdown of the US economy all argue in favour of weak economic activity, slowing down the market growth of several commodities including Carbon di Sulphide. The demand from the downstream fertilizers, and packaging industries has remained tepid in the domestic market and as a result, a drop has been observed in the price realizations of Carbon disulphide in the domestic market. In addition, the aftermath of the collapse of two significant banks in the US market during late Q1 of 2023 has had repercussions on the performance of manufacturing industries. However, the Core inflation has consistently exceeded the targeted levels set by the US Federal Reserve and has been gradually decreasing at a slower pace, resulting in strained trade activities. In addition, the freight charges have declined, and material availability remained sufficient which further supported the Carbon disulphide to follow the downtrend in the domestic market.
Asia- Pacific
Carbon disulphide prices have inched lower in Asia's biggest economy, China throughout the second quarter of 2023. The manufacturers were reluctant to destock the current stocks to start fresh production in the domestic market. As a result, the market players have opted the successive reduction to stimulate the shipments. The cost pressure from the feedstock Sulphur was insufficient as its prices progressed in a downward trend as reported by market participants. After growing at a faster-than-expected pace in Q1 after the ease of COVID restrictions, the world's second-biggest economy has lost steam in April-June amid steepening deflation, and weak demand from the overseas market. On the demand front, the inquiries from the downstream packaging, and fertilizers remained average, resulting in declining consumption rates in the domestic market. The downstream procurement was relatively average. In addition, the availability of finished stock of Carbon disulphide was abundant in the domestic market, weighing down the prices of Carbon disulphide in the domestic market.
Europe
Carbon disulphide prices have decreased significantly in the German market during the second quarter of 2023. Global economic uncertainties such as ragging inflationary pressure and persistent rise in interest rates have impacted the consumer pocket. The demand from the downstream fertilizers, and packaging industries remained limited which weighed down the prices of Carbon disulphide in the domestic market. Although demand from the rubber (tire) as well as from the textile industry has remained moderate in the domestic market it didn’t lead to an increased price realization of Carbon disulphide. In addition, the cost pressure from feedstock was also inadequate in the given time frame. Meanwhile, the steady imports from the Asian market have resulted in sufficient inventories in the German ports. The freight charges from Asia to Europe declined by nearly 9% which further led to price drops in the domestic market. Furthermore, the German purchasing manager’s index was fall from 44.5 in April to 43.2 in May, indicating a contraction in new orders, therefore the positive development of Carbon disulphide has subdued, and prices operated at a low level.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, Carbon disulphide prices in the USA market have continued to decline due to slow purchasing sentiment and strong supplies. Demand from the dyes and rubber industries has been weak, and there were limited inquiries for new orders from end-users, resulting in a bearish pricing trend in the domestic market. The manufacturing industry in the US market has also been underperforming, contributing to the sluggishness in the market. Operating rates have remained stable, leading to high inventory levels in the USA. Additionally, market participants reported, the recent banking crisis in the USA has had a negative impact on the market growth of various commodities, including Carbon disulphide.
Asia-Pacific
During the first quarter of 2023, Carbon disulphide prices have decreased in China due to slow purchasing sentiment in the market. Operating rates in China have remained moderate due to weak consumption from downstream industries. Additionally, the prices of feedstock Sulphur have declined, resulting in low production costs of Carbon disulphide in the domestic market. Demand from downstream industries such as rubber, dyes, and pesticides has slowed down both domestically and overseas, and market participants have reported limited new orders from end-users. However, the surplus inventories of the product have led manufacturers to revise their negative price quotations in the domestic market.
Europe
Prices of Carbon disulphide have witnessed a downward trend in the European market during the first quarter of 2023 amid gloomy buying sentiments and ample supplies in the region. In addition, domestic production remained under check while the carbon disulphide imports from Asia improved on European shores as the freight charges worsened sharply. In addition, feedstock Sulphur prices have also remained on the lower end, which resulted in the low production cost of Carbon disulphide in the region. In addition, due to high-interest rates and inflation, the demand from the downstream rubber, dyes, along with pesticides has remained weak. There were no new orders from end-use industries, so the product ended up in stock. In addition, the market perceived a wait-and-see attitude.
For the Quarter Ending December 2022
North America
Carbon Disulphide prices have showcased fluctuation in the USA market during the fourth quarter of 2022. During the initial and mid of Q4, carbon Disulphide. Demand from the downstream textile, solvent, and allied industries have stable to firm in the domestic market. Moreover, the demand-supply gap increased along with production costs. The US rail workers went on a strike demanding higher wages and a better working environment, thus limiting the material available in the market. However, the worse was averted owing to smooth intervention by US Congress. Although, towards the end of the quarter, Carbon Disulphide prices gained a downtrend due to subdued demand from both the domestic and international markets, while the ample inventory level forced the manufacturer to drop their price quotation. Meanwhile, cheap imports from Asia further weighed down the prices of Carbon Disulphide in the regional market.
Asia- Pacific
Prices of Carbon Disulphide have witnessed mixed sentiment in China during the fourth quarter of 2022. In the first half of Q4, Carbon Disulphide prices improved in the Chinese market owing to the firm production cost. Demand from the textile, solvent, and other industries has been bullish, while the limited material availability in the market has led to price increases in the domestic market. Meanwhile, demand from the overseas market has also risen. In addition, under the influence of persistent lockdown implementation along with zero covid policy, manufacturers have started facing a labor shortage coupled with supply chain disruption, which majorly affects logistical constraints. However, during the second half of Q4, Carbon Disulphide prices gained downward momentum owing to weak demand and sufficient material availability in the market. Feedstock prices remained stable during this quarter, which softened the domestic production cost of Carbon Disulphide. In addition, manufacturing activity contracted in December as Covid-19 outbreaks continued to weigh on both output and demand.
Europe
Carbon Disulphide showed a mixed trend in the European market during the fourth quarter of 2022. In the first month, Carbon Disulphide prices increased due to volatile energy prices and high inflationary pressure. Demand from the downstream industries has remained stable to weak in the regional market. Although, during the last two months, Carbon Disulphide prices dropped due to steady inflows of cheap imports from Asia. In addition, demand from the downstream textile, solvent, and other competitive industries have remained subdued amid sluggish buying sentiment in the region and the slow growth of the key industries. Meanwhile, energy prices stabilized during this quarter, resulting in stable production costs of the Carbon disulphide. On the other hand, supply chain dynamics have improved in the European continent with no major port congestions. Thus, facilitating the availability of imports and inter-European transportation, respectively.
