For the Quarter Ending March 2025
North America
In Q1 2025, the market sentiments for Liquid Sulphur Dioxide in North America reflected a unique tug-of-war between bullish feedstock dynamics and bearish downstream conditions, resulting in mixed yet cautiously optimistic trends. In January, bullish momentum in the sulphur market—driven by severe winter disruptions, high import costs, and tight inventories—elevated production costs for Liquid Sulphur Dioxide. However, downstream sulphuric acid demand remained subdued due to limited seasonal agricultural activity and buyer caution, tempering the price gains.
February saw continued feedstock constraints amid refinery shutdowns and ongoing weather-related logistics issues, keeping input costs high for producers. Yet, demand for sulphuric acid remained muted, as agrochemical buyers held back purchases due to sufficient inventories and low consumption, placing a cap on aggressive pricing for Liquid Sulphur Dioxide.
In March, while sulphur prices surged further due to pre-tariff procurement activity and persistent supply tightness, bearish sentiment in the downstream sulphuric acid market—marked by falling prices, weak Latin American demand, and trade policy anxieties—dampened market enthusiasm for Liquid Sulphur Dioxide. Thus, the quarter unfolded with a cautiously bullish undertone, primarily fueled by cost-push factors from the feedstock side, but consistently restrained by limited downstream pull and economic uncertainty across the sulphuric acid value chain.
APAC
In Q1 2025, the APAC Liquid Sulphur Dioxide market consistently demonstrated bullish sentiment, underpinned by a confluence of rising production costs, stable downstream demand, and evolving policy dynamics. In January, prices surged as escalating feedstock sulphur costs and tight supply conditions coincided with steady demand from the fertilizer and metal processing sectors, particularly driven by ongoing plantation activities and the expanding EV battery industry. February sustained this upward momentum, although at a moderated pace, due to limited spot trading as buyers favored long-term contracts and planned for future seasonal demand. Despite cautious procurement, elevated input costs and maintenance shutdowns at key fertilizer plants constrained supply, maintaining the bullish trend. By March, the market witnessed renewed strength, spurred by a sharp rise in feedstock costs and consistent agrochemical demand amid Kharif season preparations. Early uncertainty regarding government fertilizer subsidies tempered buying activity, but bullish sentiment returned after formal approval of the nutrient-based subsidy scheme toward the month’s end. Ongoing plant maintenance, coupled with deferred commissioning of new facilities, added to supply-side tightness. Collectively, these factors—rising costs, strategic buying behaviour, and supportive policy decisions—sustained a bullish outlook across the quarter, despite intermittent caution from market participants.
Europe
In Q1 2025, the market sentiment for Liquid Sulphur Dioxide in Europe was influenced by both bullish feedstock dynamics and mixed downstream conditions, creating a generally cautious but upward-moving market trend. In January, the strong bullish sentiment in the feedstock sulphur market, fueled by tight availability due to refinery production declines and rising crude oil prices, led to increased production costs for Liquid Sulphur Dioxide. Despite the lack of seasonal agrochemical demand, the tight supply conditions supported price stability, as buyers anticipated potential shortages. February continued the trend, with disruptions such as refinery fires and technical issues exacerbating the feedstock sulphur supply constraints. This kept production costs elevated for Liquid Sulphur Dioxide, although demand from the agrochemical sector remained steady, maintaining upward price pressure. March saw further tightening of supply, with refinery shutdowns and logistical disruptions leading to more pronounced shortages of sulphuric acid, which directly impacted the availability of Liquid Sulphur Dioxide. The ongoing demand from the agrochemical sector during the plantation season, coupled with supply chain difficulties, pushed prices higher. However, bearish sentiment emerged toward the end of March, partly due to the temporary halt of purchases by OCP, redirecting volumes elsewhere, which added uncertainty and tempered some of the bullish market momentum.
For the Quarter Ending December 2024
North America
In Q4 2024, the Liquid Sulphur Dioxide (LSD) market in North America was shaped by significant supply constraints and rising demand, driven by disruptions in the supply chain. Strikes at Canadian ports halted major production facilities and winter-related rail delays severely impacted the availability of feedstock, Sulphur, while Hurricane Helene and flooding incidents further hindered production. Despite high refinery utilization rates in the Gulf Coast and Midwest, supply remained tight.
Demand for LSD was strong, especially from the agrochemical sector during the plantation season, driven by fertilizer needs and soil replenishment, while global phosphate market tightness, exacerbated by Chinese export restrictions and domestic production outages, continued to support the feedstock Sulphur demand further tightening its availability. The downstream Sulphuric Acid sector experienced similar challenges, with Canadian port congestion and production delays contributing to rising costs and tight supply.
The resolution of strikes did little to alleviate ongoing logistical issues, and imports remained limited. As a result, active procurement continued, with availability becoming the primary price determinant. The market's overall sentiment remained bullish yet cautious, with supply chain disruptions and sustained demand influencing market dynamics throughout the quarter.
APAC
In Q4 2024, the Liquid Sulphur Dioxide (LSD) market in the APAC region followed a generally bullish trajectory, influenced by tight Sulphur supply, high demand, and rising production costs. Sulphur, as the key feedstock, faced disruptions due to logistical issues such as typhoons, port congestion, and reduced sailings, which limited the influx of new supplies. These challenges were further exacerbated by seasonal demand from the agrochemical and phosphate sectors, with fertilizer requirements peaking during the plantation season. Despite efforts to maintain supply, port inventories steadily declined, reflecting insufficient stocks to meet consumption. The Sulphuric Acid sector, a key downstream market for LSD, also witnessed a strong demand due to strong consumption from agrochemicals and tight supply resulting from scheduled smelter maintenance and high feedstock costs. In December, however, the Chinese market shifted to a slightly bearish tone due to export restrictions, price cuts by major producers, and reduced phosphate production. While market participants navigated through limited spot availability, the outlook remained cautious, with expectations for market recovery post-Lunar New Year, supported by higher run rates from phosphate producers.
Europe
In Q4 2024, the Liquid Sulphur Dioxide (LSD) market in the European region remained bullish due to tight Sulphur supply and increased production costs. Sulphur, the key feedstock for LSD, experienced upward pressure as sanctions on Russian crude imports led to a reliance on low-sulphur crude, further escalating production expenses. The ongoing plantation season boosted demand in the agrochemical sector, particularly for fertilizers, increasing the consumption of Sulphur for Sulphuric Acid production. Despite challenges like limited inventory levels, production disruptions, and port congestion, the market showed resilience. The restart of plants and increased imports offered some relief, but logistical issues such as the Grillo Werke plant fire continued to strain supply chains. The need for long-term solutions, such as the Aglobis and Rhenus remelter plants, became more apparent as supply constraints persisted. Overall, the market maintained bullish conditions, driven by tight supply, strong demand from the agrochemical sector, and ongoing challenges in logistics, ensuring stable market conditions for LSD production throughout the quarter.
For the Quarter Ending September 2024
North America
In Q3 2024, Liquid Sulphur Dioxide prices in North America experienced an uptrend, with the USA seeing the most substantial price changes. This growth was driven by several factors impacting market dynamics. Supply constraints, caused by disruptions such as labor strikes and natural disasters, significantly tightened Liquid Sulphur Dioxide availability across the region. These disruptions hindered the transportation and production of Liquid Sulphur Dioxide, creating a scarcity that contributed to elevated prices.
The demand from the downstream agrochemical sector intensified as the plantation season progressed, driving further increases. The agrochemical industry relies on Liquid Sulphur Dioxide, especially in fertilizers, to meet seasonal demand, adding pressure to an already constrained supply.
Furthermore, a surge in the production cost of the commodity due to the increase in the prices of the feedstock Sulphur market further pushed the prices of Liquid Sulphur Dioxide upwards. In addition, along with the increased demand, the inventory levels of the commodity proved to be insufficient to meet the demand, hence, to reflect the market scenario, the market players increased their ex-quotations which resulted in the bullish market sentiments of the commodity in the US.
APAC
In Q3 2024, the APAC region witnessed a significant surge in Liquid Sulphur Dioxide prices, with India experiencing the most notable price changes. The market was influenced by several key factors that drove prices upwards. Rising production costs, particularly due to an increase in feedstock prices, played a crucial role in elevating market prices. Additionally, heightened demand from downstream sectors, such as the agrochemical industry, further intensified the market dynamics. The recovery of the monsoon season bolstered fertilizer demand, contributing to a bullish sentiment. Global supply chain constraints, particularly from China, limited imports to India, exacerbating the supply-demand imbalance and pushing prices higher. Plant shutdowns, including maintenance at key refineries, disrupted supply chains, further straining availability and contributing to the price escalation. In India specifically, the pricing environment for Liquid Sulphur Dioxide displayed a consistent upward trend throughout the quarter. Seasonal factors, such as the delayed plantation season and increased production activities in response to rising demand, influenced price changes. The correlation between rising production costs, robust demand, and supply shortages resulted in a positive pricing environment. The quarter-ending price of USD 238/MT Ex-Ahmedabad in India reflected the overall bullish sentiment in the market.
Europe
In Q3 2024, Europe’s Liquid Sulphur Dioxide market experienced an uptrend, propelled primarily by the rising costs of feedstock Sulphur. The strong increase in Sulphur prices directly impacted Liquid Sulphur Dioxide production expenses, pushing market prices upward as manufacturers passed on these heightened costs. This cost-driven price growth was further compounded by a surge in the demand from the agrochemical sector. During the quarter, agricultural activities across Europe surged, intensifying the demand for agrochemicals and, consequently, for Liquid Sulphur Dioxide. This seasonal spike in agricultural activity typically increases fertilizer demand, straining supply channels for Liquid Sulphur Dioxide. As a result, the region faced a pronounced supply-demand imbalance, which supported bullish price momentum throughout Q3. The heightened demand from the agrochemical industry, coupled with restricted supply, created a favourable environment for price increases, reflecting the market's sensitivity to both feedstock fluctuations and seasonal agricultural cycles. Moreover, the sustained high demand emphasized the market's dependency on downstream agricultural activities, magnifying the effects of any shifts in Sulphur costs or seasonal agricultural requirements. Consequently, Q3 2024 marked a period of elevated pricing for Liquid Sulphur Dioxide, underscoring the market's intricate supply-demand dynamics in Europe.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Liquid Sulphur Dioxide market saw a notable price increase, driven by several key factors that collectively created an inflationary environment. One of the primary contributors was the rise in production costs, which was largely influenced by the increased prices of upstream Sulphur and Crude Oil. As these essential raw materials became more expensive, the cost of producing Liquid Sulphur Dioxide naturally followed suit, pushing market prices upward. This cost escalation was not isolated but part of a broader trend affecting various sectors reliant on these feedstocks.
Additionally, the overall improvement in the manufacturing sector added to the upward pressure on Liquid Sulphur Dioxide prices. The quarter saw a surge in new orders and employment, indicating a robust industrial activity that heightened the demand for chemicals and related products. This increased activity required more Liquid Sulphur Dioxide. The heightened industrial demand, coupled with the existing supply chain constraints, contributed to the upward pricing trend. Furthermore, supply chain disruptions, such as delivery delays and higher shipping costs, exacerbated the situation. These disruptions were partly due to logistical challenges and the rising costs of transportation, which added another layer of pressure on prices.
The seasonal dynamics also played a significant role in shaping the market. The summer driving season traditionally boosts demand for regenerated Liquid Sulphur Dioxide from refineries, as it is used in various refining processes to produce cleaner fuels. Moreover, inflationary pressures and supply chain constraints, including the looming threat of rail strikes, added to the bullish market sentiment. The potential for such strikes created uncertainty and caution among market participants, who were hesitant to lower prices despite any short-term fluctuations in demand. This environment of heightened costs, increased demand, and logistical challenges culminated in a sustained price increase for Liquid Sulphur Dioxide throughout Q2 2024.
APAC
In Q2 2024, the Liquid Sulphur Dioxide market in the APAC region experienced a pronounced upward trajectory. Several key factors contributed to this price elevation. A significant driver was the surge in feedstock Sulphur prices, which saw substantial increases due to supply constraints and heightened global demand. Furthermore, the rising operational costs due to increased transportation and fuel expenses have also played a crucial role in pushing prices upward. Disruptions in the supply chain, notably due to plant shutdowns and operational delays, compounded these issues, limiting the available inventory and further straining supply. In India, the largest price fluctuations were observed, primarily due to the culmination of the plantation season cycle, which significantly boosted demand from downstream sectors, particularly fertilizers. This seasonality effect was exacerbated by the ongoing general elections, which disrupted supply chains and aggravated market sentiments. In comparison to Q1 2024, prices in India saw a marked increase of 3%, underlining a consistent upward trend throughout the quarter. The overall trend for Liquid Sulphur Dioxide in India during this period has been decidedly positive, driven by high demand and supply constraints. The quarter ended with prices reaching USD 16,000/MT Ex-Ahmedabad, underscoring the sustained bullish sentiment in the market. This upward pricing environment indicates a strong market response to both seasonal and economic factors influencing the industry.
Europe
In Q2 2024, the European Liquid Sulphur Dioxide market witnessed a substantial upward trend in pricing, driven by several key factors that collectively tightened the supply-demand balance. A significant driver was the robust maintenance schedule across European smelters, which limited the availability of Liquid Sulphur Dioxide, creating a notable supply crunch. This scarcity was further exacerbated by tightened supplies of molten sulphur, a crucial feedstock, as production from sulphur burners faced constraints. These combined supply-side limitations significantly reduced the availability of Liquid Sulphur Dioxide in the market, exerting upward pressure on prices. The situation was further strained by the strong demand from the agrochemical sector, driven by seasonal planting activities that required increased volumes of Liquid Sulphur Dioxide, thereby deepening the supply-demand imbalance.
The economic environment also played a crucial role in the escalating prices of Liquid Sulphur Dioxide. Inflationary pressures and increased production costs, primarily due to rising crude oil prices, added to the cost structure of producing Liquid Sulphur Dioxide. This economic backdrop, marked by rising input costs, significantly influenced the market dynamics, contributing to the overall price increase. The heightened demand from the agrochemical sector during the crop season further amplified the impact, as insufficient inventory levels struggled to meet the robust demand. The convergence of limited supply, strong seasonal demand, and higher production costs created a perfect storm, driving Liquid Sulphur Dioxide prices upward throughout Q2 2024.
