For the Quarter Ending March 2023
North America
Liquid Sulphur Dioxide prices in the North American region fell during the first quarter of 2023 due to weak market fundamentals. According to industry players, falling consumption in downstream industries such as food preservation, water treatment, and chemical manufacturing resulted in weak domestic demand, reducing demand pressure on the Liquid Sulphur Dioxide market. Despite a downturn in industrial activity, local suppliers maintained enough stocks thanks to a constant influx of cheaper imports from overseas markets. Sticky inflation, on the other hand, prompted the US Federal Reserve to boost interest rates, affecting consumer confidence and forcing dealers to make offtakes at lower margins.
Asia- Pacific
Prices for Liquid Sulphur Dioxide remained volatile throughout the Asia-Pacific region during the first quarter of 2023. Prices initially fell due to weak market fundamentals, low-cost pressure from feedstock Sulphur, and abundant product supply in the region. In the mid-quarter, prices eventually increased following the end of the Lunar New Year holiday, as market participants replenished material available in the domestic market, anticipating a potential recovery in demand, particularly in industries such as chemicals and water treatment. However, there was a persistent indication of price bearishness in the last month of the quarter, backed by persistently lower downstream demand, increasing inventories among local merchants, and dropping feedstock costs.
Europe
During the first quarter of 2023, Liquid Sulphur Dioxide prices in the European region continued to follow a declining trajectory, as did market sentiments. On the heels of falling feedstock Sulphur prices, there was dwindling cost pressure across the product market. Domestic suppliers had sufficient supplies on hand as the slump in the manufacturing sector eased due to fading supply chain issues in the European market. However, demand for downstream chemicals such as sulfuric acid, sulfites, and dyes remained slow, with few new orders. Despite falling freight charges, overseas purchasers remained cautious about monitoring the short-term market prospects. As a result, several distributors were obliged to lower their pricing since market activity had not met expectations thus far.
For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, the market price of Liquid Sulphur dioxide plunged in the North American market affecting the market sentiments. Liquid Sulphur Dioxide values in the domestic market remained range bound in tandems with a mixed demand pattern across the country. Plunging demand for Liquid Sulphur Dioxide as a refrigerant at the onset of the winter season in the country considerably pushed down the prices of the product in September. Quotations of Liquid Sulphur Dioxide in the domestic market remained weak, with higher supply from several European and Asian countries due to container abundance and weakening freight charges. In addition to logistic disruption, the spillover effect of decrement in its international prices largely weighed to pull down its values in the USA.
Asia
The market prices of Liquid Sulphur dioxide plummeted in the Asian market during the last quarter of 2022, with feedstock Sulphuric Acid and Ammonium Sulphate prices falling, witnessing notable deterioration. The quotation of Liquid Sulphur dioxide by the traders was weak, which was used for reference in the Indian market. To relieve inventory pressure, the enterprise lowered its price due to poor shipments from domestic refineries. The manufacturing firms operated at weaker production rates, and the supply of goods was in normal circulation. The downstream fertilizer price has also reduced in the Asian market with more inventory which supports the downstream derivative industries in the local market.
Europe
In the Q4 of 2022, Liquid Sulphur dioxide prices fluctuated throughout the quarter in the European market. The upstream raw material Sulphur has fallen in the European market due to the decreased international crude oil prices. Demand in downstream industries plummeted, and the abundant supply of sulphuric acid due to the shutdown of specific industries in the European regional market caused the downstream prices to tumble down further. This has decreased the cost of Liquid Sulphuric Acid in the local market as well. The domestic market for Liquid Sulphur dioxide witnessed a downward trajectory in the last month of the quarter compared to the previous month. The freight prices had fallen in the European market with more inventory and supported the operating costs in the region as well. Weak demand from downstream Sulphuric Acid ultimately price reduced Liquid Sulphur dioxide.
In the third quarter of 2022, the requirement for Liquid Sulphur Di Oxide is supported by a fluctuation in demand from downstream sectors. Projections for fertilizer demand losses are wide-ranging and, in several instances, overstated during the beginning of the quarter. The demand from downstream also remained underwhelming as consumption from the fertilizer market decreased towards the end of the quarter. Because of higher volumes of demand at the end of the quarter, higher congestion at some US ports caused global supply chain challenges in the region.
The prices of Liquid Sulphur Di Oxide decreased in the Asian market during the third quarter of 2022, with prices ranging at INR 42720/ton Ex-Ahmedabad. The upstream Sulphur price is reduced in the Asian market due to more inventory and supports the downstream derivative industries in the local market. Weak demand from downstream Sulphuric Acid ultimately reduced the prices of Liquid Sulphur dioxide. Demand in downstream industries and abundance in the supply of Sulphuric Acid in the Indian region was increasing. Discussions of Liquid Sulphur Dioxide in the domestic market remained weak, with abundant supply from several European and Asian countries due to an increase in importing ships and weakening freight charges.
The demand for Liquid Sulphur Di Oxide fell in the European market during the third quarter. Fertilizer demand from the regional market has affected the buying sentiments. Due to the war between Russia and Ukraine and the sanctions, the disruption in supply from Russia to European regions has impacted trade. Prices fell as feedstock (Crude Oil) in the regional market with falling consumption levels. The market's end-user purchasing pattern is waning, which lowers the cost of Liquid Sulphur dioxide even more. The price is pushed lower by increased supply and available inventories of the product.
