For the Quarter Ending March 2022
North America
In the first quarter of 2022, the Sulphur market in the North American region remained consolidated on the back of the strong Crude offers throughout the quarter. Even after the resurgence of the omicron variant, the OPEC+ alliance remained stuck to the decision of gradually increasing the Crude Oil output that kept the market sentiments buoyed in the US domestic market. Whereas, the demand from the agricultural and chemical intermediate sectors remained persistently healthy as the restrictions of China and Russia over the exports of raw materials and the rising food pricing index changed the dynamics and kept the bullish sentiments in the regional market. Although, the CFR Texas discussions for the Sulphur granular were settled at USD 460 per tonne, during the quarter ending March 2022.
Asia Pacific
During the first quarter of 2022, the sentiments for Sulphur in the Asia Pacific region observed a significant gyration in the market dynamics as Russia started its special military operations in Ukraine. The Crude Oil market shot upwards, as the western nations were more reluctant to procure the Russian supplies and the inquiries traffic concentrated on the middle-eastern market. In response, the Crude offers levied its impact on the Sulphur market in the APAC region, although Indian refiners safeguarded their interest after procuring the Russian Urals (high Sulphur content) despite strict sanctions on Russia. Whereas, the Chinese market remained bullish amidst the lunar new year holidays and winter Olympics 2022, and the far east Asian countries were majorly impacted as the restriction hit their arbitrage with Russia. Therefore, the CFR Shangai discussions for Sulphur granular grade soared to USD 442 per tonne, in March 2022.
Europe
Overall, the European region is the most affected market due to the geopolitical turmoil in the eastern European region between Russia and Ukraine. As the sanctions made Russia isolated on a global financial stage and impacted its arbitrage with the European Union. Whereas, the European countries were reluctant to procure Russian energy materials in protest of the invasion of Ukraine. Whereas, the prevailing energy crisis hugely impacted the market dynamics, and the Suez Canal authority increased the charges by 5% which further inflated the prices of Sulphur in the European market. As a ripple effect, the CFR Hamburg pries crossed the USD 450 per tonne mark in mid-March.
For the Quarter Ending December 2021
North America
The North American Sulphur market witnessed a mixed trend in the fourth quarter of 2021, the producer's offer for Sulphur remains consolidated after observing significant growth in the previous quarter. The domestic market sentiments were uplifted after Biden’s Administration announced to release the strategic Petroleum reserves as part of ongoing efforts to lower the prices of Crude Oil in the fourth quarter. As a ripple effect of the persistent demand from the downstream players, the CIF Texas quarterly average for Sulphur was assessed at USD 371 per tonne.
Asia Pacific
After the OPEC+ Alliance, ministerial-level talks concluded to gradually increase the production output of Crude Oil. The APAC Sulphur market observed a significant uptrend in the producer's quotations constantly soared driven by steadily increasing demand from the downstream players. Whereas, the high freight charges coupled with hiking pricing forced the ASEAN buyers to hold off the imports besides strengthening the wait and see sentiments in their domestic market. However, the offers witnessed a slight plunge in the second half of the quarter amidst the resurgence of the omicron variant of COVID 19. As a ripple effect, the CFR Shanghai quarterly average discussion for Sulphur granular grade was assessed at USD 312 per tonne.
Middle East
In the fourth quarter, the Middle East Sulphur market witnessed persistent growth, this is majorly attributed to the supply-demand imbalance which further coupled with the hiked freight charges. Whereas, the OPEC + Alliance decided to gradually increase the production of Crude Oil, in response the offers for Sulphur were observed to be majorly dependent on the pricing trajectory of Crude Oil. In addition, the European energy crisis provided the window for Middle East manufacturers to attain better netbacks from the European market. As a ripple effect, the FOB Doha discussions were averaged at USD 223 per tonne, during the quarter ending.
For the Quarter Ending September 2021
North America
The North American Sulphur pricing demonstrated an upward trend in the 3rd quarter of 2021 followed by consistent demand from the downstream manufacturers. In terms of supply, an improvement was observed during the third quarter as refinery utilization rates remained constant at pre-pandemic levels. The demand witnessed an upward trajectory in Q3 mainly from the downstream sulphuric acid producers, fertilizer, and industrial sectors. After recovery from the extreme weather conditions in the US, the supply and demand balance improved significantly which led to an increase in Sulphur prices during Q3 of 2021.
Asia
The prices of Sulphur witnessed a significant rise throughout the Asia Pacific region in the third quarter of 2021. A major surge in Sulphur prices was observed in the Chinese domestic market during the 3rd quarter due to the strong demand from downstream fertilizer manufacturers. Increased scrutiny could be seen as global fertilizers costs soared to new records in Q3, compelled by energy crises in Europe and China. In India, market sentiments of Sulphur showcased mixed sentiments at different locations. Traders reported firm demand and consistent offtakes of Sulphur in Mumbai and Vadodara, but no significant change ushered in its prices in September due to higher inventories. The country’s Sulphur prices have been subjected to a continuous drop due to higher inventory levels at BPCL’s refinery location. Granular Sulphur CFR Vizag (India) prices declined from USD 274/MT to USD 272/MT in Q3 2021.
Europe
The regional market outlook of Sulphur showcased mixed sentiments in Q3 2021. Downstream markets suffered an increase in the prices with new record spot gas highs on Monday, 20 September, and no major relaxations to fertilizer producers. An increment in the demand was observed from downstream fertilizers and the Sulphuric Acid sector throughout the quarter. A range of European fertilizer production went offline amid record high Dutch TTF and British NBP gas prices, although the British government stepped in with short-term financial support which resulted in the resumption of one of CF Industries’ two UK fertilizer plants.
For the Quarter Ending June 2021
North America
In North America, prices of Sulphur fluctuated on monthly basis during this quarter, as the demand and supply gap kept changing month over month. During April, several refineries resumed their operations after prolonged shutdowns due to devastating winter of February, which effectively improved the supply of Sulphur in the country. In May, Sulphur prices declined effectively, as the supplies of crude-based Sulphur restored efficiently from domestic refineries. However, despite of improvement in supply chain activities, prices witnessed marginal gain in effect of rise in demand from downstream fertilizers segment in the second half of Q2. Thus, prices of Sulphur witnessed marginal surge from USD 161/MT to USD 162/MT in the mid of June in USA.
Asia
Sulphur prices surged consistently during this quarter, as the demand from downstream manufacturers remained firm in this timeframe. In Chinese market, unprecedented rise in offtakes from downstream fertilizer manufacturers amidst concerning shortage, caused the prices of Sulphur to rise effectively in the country. Meanwhile, in India, similar scenario was observed where the offtakes from downstream fertilizer manufacturers remained high to satisfy the overall demand. Therefore, a rise by more than 10% and 8% was observed in the Indian and Chinese market, where prices settled at USD 246.8/MT and USD 224/MT in India and China respectively during the month of May.
Europe
European market witnessed stability throughout the quarter, as the demand from downstream fertilizers and Sulphuric Acid sector showcased firm sentiments across the region. Besides, supply activities improved effectively supported by improved logistics and waterways operations along with the resumption in plant operation from some of the major refineries in Europe. Following improvement in demand, as supplies also improved effectively during this timeframe, prices thus showcased just a marginal revival across the region.
For the Quarter Ending March 2021
North America
North America’s crude-based Sulphur output was heard to be curtailed as an effect of cold snap which hit across the US gulf coast (USGC) area in mid-February. Most of the refineries remained shut during February, due to unfavourable operating conditions under freezing weather, thus the output for Sulphur significantly reduced which supported the prices. Although the demand for Sulphur from the downstream sectors remained low, but due to lack of availability and soaring crude derivatives prices, prices of Sulphur increased during February by USD 5/MT and remained stable till the end of March at USD 135/MT.
Asia
Despite of facing feeble demand from the end-user industries, prices for Sulphur followed upward trend across Asian region. Lower output from the US after freezing cold, created a global shortage for most of the prime chemicals including Sulphur, meanwhile the demand for crude-based Sulphur in the global market was high that supported its prices in the Asian region. The CFR price of Sulphur in the Indian markets hovered around USD 199.93/MT, showing gains from USD 167/MT levels in January as crude hits fresh hikes in March. Similar scenario was observed in China where the prices soared due to domestic shortage, after lunar new year holidays.
Europe
The European market faced shortage of Sulphur amid fair demand from the downstream sectors. Although the supply remained curtailed due to planned and unplanned shutdowns heard from major refineries of France and UK during this time. In addition, container shortage and high shipping freight provided further boost to the prices of Sulphur forcing international traders to resist European Sulphur stocks.
For the Quarter Ending September 2020
Asia
The Asian Sulphur market showcased mixed sentiments amidst sufficient supply and revival in the downstream demand by the end of September. China’s stocks climbed to 3 million tonnes, adhering a much higher increment as compared to its usual stock level that hovers between 1-1.5 million tonnes. Pent-up downstream demand from detergents and fungicides prompted recovery in the consumption of Sulphur in India and China. Although demand was still bearish in Q3 of 2020, but it remained way above the groundbreaking lows witnessed in the previous quarter. As confirmed by traders, Sulphur prices of remained in the range between 90-92 USD per tonne CFR China.
North America
Majority of the operations in the U.S. Sulphur market were halted towards the end of August under the fear of Hurricane Laura in the US Gulf Coast. Logistics were adversely disrupted laying a direct impact on the supplies of Sulphur across the US. Suncor Sulphur announced a planned maintenance turnaround in mid-September that further exacerbated the supply crisis in the last few weeks of September. Although burners were operated at efficient rates in tandem with strong demand pattern as a major fertilizer producer was heard announcing a massive surge in its Sulphur intakes. However, limited production restricted the export revenues of the US Sulphur market.
Europe
Extended turnarounds in refineries as a repercussion of Covid-19 restricted the supply of Sulphur across the European market. The supply also got affected under the stress of shifting to a low Sulphur fuel on various government initiatives released in concern with the increasing environmental distress. Although demand remained stable in Q3, low offtakes from the downstream capro sector delayed the revival in its overall demand fundamentals. With the economy paving its way back, the demand for Sulphur from various downstream segments is anticipated to revive prominently by the next quarter.
