For the Quarter Ending June 2025
Asia-Pacific (APAC)
• Insoluble Sulphur Price Index in China rose 2.8% quarter-on-quarter, reaching USD 1,026/MT FOB Qingdao in June 2025.
• Why did the price of Insoluble Sulphur change in China in July 2025?
Despite softening sulphur feedstock costs, prices held firm due to stable domestic demand, mild supply tightening, and cautious sentiment ahead of potential tariff reinstatements.
• Insoluble Sulphur Price Forecast for Q3 2025: Prices are likely to remain range-bound, with bullish risks tied to upstream sulphur volatility and logistical constraints around the August 14 U.S.-China tariff deadline.
• Insoluble Sulphur Production Cost Trend: Feedstock sulphur prices declined slightly, but rising container costs and port congestion—especially in Qingdao and Ningbo—added indirect cost pressure. The 12-week moving average price for insoluble sulphur was USD 1004.44/MT.
• Insoluble Sulphur Demand Outlook: Demand remained stable, driven by the tyre industry’s post-holiday recovery and increased OEM production. However, India’s imposition of anti-dumping duties on Chinese insoluble sulphur dampened export expectations.
• Trade Policy Impact: India’s June announcement of anti-dumping duties (up to USD 307/MT) introduced export uncertainties. Meanwhile, U.S.-China tariff suspensions encouraged short-term export bookings, straining logistics infrastructure.
• Automotive Sector: Chinese tire output rose in Q2, led by NEV and OE segments. However, bearish signals in natural rubber inventories and rubber futures markets reflect a cautious downstream sentiment.
North America
• Insoluble Sulphur Price Index in the U.S. rose by 2.9% quarter-on-quarter, settling at USD 1,660/MT DEL Texas in June 2025.
• Why did the price of Insoluble Sulphur change in July 2025 in North America?
A well-balanced market with strong downstream demand and steady domestic production maintained price stability, even as freight and geopolitical uncertainties persisted.
• Insoluble Sulphur Price Forecast for Q3 2025: A moderate upward bias exists due to increased global freight rates and a possible oil-driven sulphur cost uptick.
• Insoluble Sulphur Production Cost Trend: Feedstock sulphur prices declined slightly, but domestic production costs were stable due to reliable energy and feedstock supply. Eastman’s Kingsport and Nitro lines ran uninterrupted.
• Insoluble Sulphur Demand Outlook: Resilient domestic tire demand and strong exports to China and India supported healthy offtake. EV trends and high-performance tire adoption kept consumption firm.
• Trade Policy Impact: Temporary easing of U.S.-China tariffs sustained strong trans-Pacific trade flows. However, buyers remain watchful ahead of the next tariff review in August.
• Automotive Sector: Seasonal replacement demand, rising EV adoption, and run-flat tire proliferation continued to support insoluble sulphur consumption, even amid cost pressures in the commercial construction sector.
Europe
• Insoluble Sulphur Price Index in Europe rose marginally in Q2 2025, in June 2025.
• Why did the price of Insoluble Sulphur change in June 2025 in Europe?
Prices firmed slightly due to increased import costs from Asia, higher inland freight surcharges, and steady tire sector demand in Germany and Eastern Europe.
• Insoluble Sulphur Price Forecast for Q3 2025: Prices are expected to remain firm, with modest upside risk due to constrained availability from China and U.S. exporters prioritizing Asia.
• Insoluble Sulphur Production Cost Trend: Europe remains largely dependent on imports, especially from China. Inland logistics costs increased due to low Rhine water levels and higher energy tariffs in Eastern Europe.
• Insoluble Sulphur Demand Outlook: Tire manufacturing across Central and Eastern Europe remained robust, driven by OEM orders and growing EV output. Replacement tire sales in Southern Europe rebounded moderately with summer travel.
• Trade Policy Impact: EU-China trade tensions remain muted, but increasing competition for Asian volumes has prompted early bookings and container shortages.
• Automotive Sector: European EV sales surged in Q2, lifting tire additive demand. However, inflationary pressures and subdued private vehicle registrations in France and Italy capped broader consumption.
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.
Frequently Asked Questions (FAQs)
1. What is the current price trend of Insoluble Sulphur in APAC?
Prices in China were assessed at USD 1,026/MT FOB Qingdao in June 2025.
2. What is the current price trend of Insoluble Sulphur in North America?
U.S. prices were flat at USD 1,660/MT DEL Texas during June 2025.
3. What is the current price trend of Insoluble Sulphur in Europe?
European prices rose modestly, reflecting higher import costs and healthy tire sector demand.
4. Why did Insoluble Sulphur prices change in Q2 2025?
• APAC: Prices were stable amid steady domestic tire demand and logistical constraints. Anti-dumping duties from India also influenced trade patterns.
• North America: Strong tire demand and smooth production offset cost pressures from freight and geopolitics.
• Europe: Rising freight and energy costs, combined with limited supply from Asia and stable automotive activity, pushed prices slightly higher.
