For the Quarter Ending March 2025
North America
In Q1 2025, the North American Insoluble Sulphur market exhibited a generally stable pricing trend, shaped by balanced supply-demand dynamics and consistent production fundamentals. Market activity remained subdued throughout the quarter as downstream demand from the automotive and tyre manufacturing sectors stayed moderate.
While demand for OEM and replacement tyres, particularly those used in electric vehicles, remained steady, broader consumption in industrial rubber goods was limited due to ongoing weakness in the construction and manufacturing sectors. Supply levels were adequate, with domestic production carefully managed to align with the pace of demand, avoiding oversupply despite challenges such as elevated labour costs and operational pressures within the chemical sector. Feedstock sulphur costs remained steady, and energy markets posed no major disruptions, allowing producers to maintain manageable production costs.
Although certain headwinds like plant closures and workforce reductions in the tyre industry weighed on sentiment, logistical operations and import flows continued without significant disruption. Overall, the market remained rangebound, with no major shifts in cost structures or demand fundamentals, resulting in minimal price volatility and a cautious but stable tone across the quarter.
APAC
In Q1 2025, the Malaysian Insoluble Sulphur market exhibited a clear downward pricing trend, driven primarily by weak demand fundamentals and persistent oversupply. The automotive and tyre manufacturing sectors—the core downstream consumers of Insoluble Sulphur—faced notable slowdowns, with vehicle production and commercial sales both declining significantly.
This led to cautious procurement behaviour and limited spot activity in the market, despite consistent supply availability and stable domestic production levels. High inventory levels, particularly among tyre manufacturers, further suppressed the urgency for new purchases. While rising global sulphur prices and stable construction activity provided some cost-side and demand-side support, they were insufficient to offset the broader softness in the automotive segment.
Feedstock availability remained adequate, supported by upstream projects, ensuring no major disruptions in supply. Overall, the market remained oversupplied, with subdued demand keeping prices under pressure across the quarter.
Europe
In Q1 2025, the European Insoluble Sulphur market continued to face downward pricing pressure, extending the bearish sentiment observed in late Q4 2024. The sluggish recovery in automotive demand, particularly in Germany—the region’s largest automobile market—weighed heavily on the sector. According to KBA data, German passenger car sales declined for three consecutive months, with year-on-year drops of 2.8%, 6.4%, and 3.9% in January, February, and March, respectively. This consistent contraction in vehicle registrations, driven by macroeconomic caution and reduced consumer spending, led to decreased demand for tire production, subsequently dampening the consumption of insoluble sulphur.
Despite a notable increase in hybrid and electric vehicle (EV) sales—up 22.1% and 35.5% respectively in March—the offset was insufficient to counteract the broader decline in conventional vehicle segments such as gasoline and diesel, which saw year-on-year drops of 29.4% and 21.7%. Moreover, the abolition of the EV environmental bonus in late 2023 had artificially suppressed prior-year numbers, inflating growth rates but not necessarily reflecting strong underlying demand growth.
From a supply-side perspective, energy cost fluctuations remained a factor, although the stabilization of natural gas prices eased production cost pressures compared to Q4. However, competition from efficient production hubs in Asia and the U.S. continued to impact European producers’ market share and pricing leverage. Additionally, the modest recovery in domestic production and exports reported by the German VDA—up 8% year-on-year in March—was largely export-driven and had limited trickle-down effect on local tire manufacturing.
As a result, Q1 2025 closed with a soft but stable market outlook, marked by weak downstream demand, slight relief in input costs, and persistent oversupply concerns. The market remains cautiously optimistic for gradual improvement in Q2 2025, contingent on broader economic recovery and sustained momentum in the EV and hybrid segments.
For the Quarter Ending December 2024
North America
In Q4 2024, the Insoluble Sulphur market in the USA showed mixed trends, with prices stabilizing at USD 1,663-1798 per MT FOB Texas in December after moderate increases in October and November.
Early in the quarter, prices rose due to higher feedstock sulphur costs, strong demand from the automotive and tire manufacturing sectors, and increased vehicle production and sales, particularly in light trucks and electric vehicles (EVs). However, by December, subdued end-user purchasing power, weaker demand in downstream industries, and cautious market sentiment led to price stabilization.
Production facilities operated steadily to meet demand, while sufficient inventories prevented supply-side pressures. Despite challenges like high interest rates and inflation tempering overall growth, vehicle sales in December grew 2.4% year-on-year, and tire production remained robust, driven by expanding EV adoption. Looking forward, steady demand from tire manufacturing and the automotive sector, especially the EV market, is expected to support stable market dynamics into early 2025, despite broader economic uncertainties.
Asia
In Q4 2024, the Insoluble Sulphur market in China exhibited mixed trends, with prices rising in October and November due to strong demand from the automotive sector and higher upstream crude oil and blending component costs, followed by a decline in December as raw material prices softened and procurement activity slowed., supported by robust inquiries from downstream industries, particularly tire and automotive manufacturers, alongside bullish sentiment driven by rising new energy vehicle (NEV) sales. October and November saw stable production levels and increased market activity, with government stimulus measures supporting industrial output and export demand. However, by December, weaker feedstock sulphur prices, elevated inventory levels, and cautious market sentiment among buyers led to price stabilization and subdued market activity. The Chinese automotive sector remained a key driver of demand, with NEV penetration exceeding 50% and brands like BYD and Li Auto achieving record sales. Tire production also surged, with year-on-year exports increasing by 11.8%. While December saw weaker demand and lower raw material costs impacting pricing, sustained growth in the NEV segment and potential volatility in upstream costs suggest a cautiously optimistic outlook for the Insoluble Sulphur market in early 2025. Thus, the prices as of end of December was stated at USD 950-1045 per MT FOB Qingdao.
Europe
In Q4 2024, the European Insoluble Sulphur market exhibited mixed trends, with prices experiencing upward momentum in early October and stabilizing through November before declining in December. The initial rise was supported by higher energy costs, particularly natural gas, and seasonal demand from the automotive and tire sectors. However, by December, declining tire sales, reduced automotive demand, and ongoing geopolitical uncertainties drove a bearish trend. Insoluble Sulphur prices were further impacted by surplus supply, declining coal tar feedstock prices, and competition from more efficient production facilities in regions like the U.S. and Asia. Manufacturing activity in Europe faced significant challenges due to high input costs, driven by Europe’s reliance on naphtha for ethylene production and volatile oil markets. The cold winter further strained natural gas supplies, adding pressure to Insoluble Sulphur production costs. Meanwhile, tire production volumes declined as the European Tyre and Rubber Manufacturers' Association reported 9% drop-in replacement tire sales, alongside an 18.3% year-on-year decline in new car registrations, which disrupted the supply chain. Despite these challenges, hybrid vehicle sales showed resilience, growing by 22.3% year-on-year in November, reflecting shifting consumer preferences. Looking ahead, while near-term recovery remains uncertain, stable supply dynamics and cautious optimism for energy cost stabilization may support a balanced market outlook in 2025.
For the Quarter Ending September 2024
North America
The third quarter of 2024 has been marked by a significant uptrend in Insoluble Sulphur prices in North America, with the USA experiencing the most notable price changes. This increase can be attributed to various factors influencing the market dynamics.
Firstly, ongoing supply chain disruptions, such as labor strikes and natural disasters, have constrained the availability of Insoluble Sulphur, leading to a tightening of supply. Secondly, heightened demand from the downstream automobile sector. Additionally, rising production costs, driven by increased crude oil prices and operational challenges, have added upward pressure on Insoluble Sulphur prices.
In the USA specifically, the Insoluble Sulphur market has shown consistent price growth, with a from the same quarter last year. The quarter-on-quarter change highlights the continuous upward trajectory. Moreover, the substantial variance between the first and second half of the quarter underscores the significant price fluctuations within the period. As of the latest quarter ending, Insoluble Sulphur prices stand, reflecting a sustained positive pricing environment characterized by increasing trends and bullish sentiments.
APAC
Throughout Q3 2024, the Insoluble Sulphur market in the APAC region witnessed a notable uptrend in prices, driven by various factors influencing market dynamics. The quarter was characterized by increasing prices, primarily attributed to rising production costs stemming from a surge in Crude Oil prices. Geopolitical tensions and supply disruptions in key oil-producing regions added uncertainty, further pushing Crude Oil prices upwards. This, in turn, impacted the production costs of Insoluble Sulphur, contributing to the overall bullish sentiment in the market. China's passenger vehicle sales increased by 4.3% in September 2024 compared to the previous year, ending a five-month decline, thanks to a government subsidy aimed at encouraging trade-ins as part of a broader stimulus initiative. The growth was driven entirely by battery-powered vehicles, which saw a boost after subsidies for consumers were doubled in July. Meanwhile, sales of gasoline-powered cars, once dominated by foreign brands, continued to decline. In total, 2.13 million vehicles were sold in September, up from 2.04 million a year earlier. For the first nine months of 2024, sales rose by 1.9% compared to the same period in 2023, according to data from the China Passenger Car Association (CPCA). The market in Singapore exhibited seasonality trends, with fluctuations driven by factors such as supply-demand imbalances and inventory levels. Despite the negative price change from the previous quarter, the quarter-on-quarter comparison showed an increase, highlighting the volatility and dynamics within the market. The quarter-ending price in Singapore reflected a consistent increasing sentiment, with the overall pricing environment remaining positive.
Europe
In Q3 2024, the Insoluble Sulphur market in Europe experienced a strong uptrend in prices, marked by a considerable increase in market value. This growth was largely driven by limited supply due to maintenance rounds and unexpected outages at Western European refineries, tightening availability and pushing prices higher. The widening price spread between Insoluble Sulphur and crude oil further underscored bullish market sentiments. Car sales saw a significant drop in the third quarter of 2024, with only 10,805 cars registered, marking a 14% decline compared to the previous quarter. This downward trend is not limited to Luxembourg, as new car sales across the European Union fell by 18.3% in August, reaching their lowest level in three years. Major markets like Germany, France, and Italy experienced double-digit declines, and sales of electric vehicles also decreased. However, in contrast to the broader European trend, the share of electric cars in Luxembourg continues to rise, albeit slowly. Germany saw notable price movements, with a dip from the prior quarter but an overall quarterly rise, indicating a positive price trend. Despite a year-over-year decrease, the quarter-ending price of Insoluble Sulphur in Germany capped a period of rising prices and a positive pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the Insoluble Sulphur market in North America experienced a predominantly negative pricing environment. This decline was driven by several key factors. Stable production levels amidst muted demand from key downstream industries, particularly automotive, contributed to downward price pressures. Additionally, lower feedstock Sulphur prices, a result of declining crude oil costs, exacerbated the decline in Insoluble Sulphur prices. The weak economic recovery across global markets further dampened demand, leading to high inventory levels and prompting sellers to offload stocks at reduced rates.
In the USA, the most significant market within North America, the trend was particularly pronounced. The automotive sector, a major consumer of Insoluble Sulphur, showed mixed demand dynamics, with a notable shift towards need-based purchasing due to affordability challenges and elevated financing costs. Seasonal factors also played a role, with the end of the heating season in Europe contributing to lower Natural Gas prices and subsequently reducing production costs for Insoluble Sulphur.
The overall sentiment in the USA was negative, with a marked -3% decline from the previous quarter and a further -2% reduction between the first and second halves of Q2. No major plant shutdowns or disruptions were reported during this period. The quarter concluded with Insoluble Sulphur prices at USD 1668/MT DEL Texas, reflecting the overarching theme of decreasing prices driven by high inventories, subdued demand, and lower feedstock costs.
APAC
The prices of insoluble Sulphur have shown an increasing market trends this quarter due to firm demand from the downstream automobile industry and rise in the prices of feedstock Sulphur. The second half of quarter of 2024 has been challenging for Insoluble Sulphur in the APAC region, with a consistent decline in prices driven by multiple factors. The primary contributors to the bearish trend included weak cost support from feedstock Sulphur, ample inventory levels, and subdued demand from downstream industries, particularly the automotive sector. Additionally, production costs were kept in check by low coal prices, further contributing to declining market prices. Several plant shutdowns, including the notable closure of facilities in the Shandong region, exacerbated the supply scenario, leading to an oversupply and further downward pressure on prices.
In China, the most significant price fluctuations were observed, with Insoluble Sulphur prices reflecting a marked decrease due to similar factors of ample supply and weak demand. Despite active downstream procurement and robust market trading, the overall sentiment remained negative. Seasonal factors and government policies aimed at boosting consumer confidence did little to offset the declining trend.
As the quarter concluded, the price of Insoluble Sulphur FOB Qingdao stood at USD 958/MT. The overall pricing environment in China was decidedly negative, reflecting broader regional trends of declining costs and oversupply amidst tepid demand.”
Europe
In Q2 2024, Insoluble Sulphur prices in Germany showed an upward trend in April due to low inventory levels in the market. However, demand from the downstream automobile sector remained weak. Despite this, supply constraints and rising upstream crude oil prices contributed to higher inventory costs. The Insoluble Sulphur market in Germany experienced bearish sentiments starting in April 2024, but stabilized at the beginning of July 2024. Although upstream crude oil prices rose by 1.43%, increasing Insoluble Sulphur production costs, commodity prices remained steady. Moderate demand from downstream agrochemical enterprises, supported by the agricultural sector's cyclical nature, contributed to market equilibrium.
Additionally, the European market has been dealing with high inflation, which has led to a decline in consumer confidence and a downward trend in the Insoluble Sulphur market. To address this and boost consumer confidence, the European Central Bank (ECB) implemented its first rate cut of 0.25% since 2019. This monetary policy adjustment helped halt the market's decline, contributing to the stability observed since mid-June. The combined effects of moderate demand, cyclical agricultural activities, and the ECB's intervention played crucial roles in balancing the Insoluble Sulphur market amidst rising production costs and broader economic challenges.
In terms of economic indicators, Germany's Manufacturing PMI declined in June compared to the previous month, remaining below the threshold level. This decline highlighted the weak performance of the manufacturing sector.
