Sulfur Market Remains Sluggish
Weighed down by insufficient demand, spot sulfur prices continue to face downward pressure.
In Vancouver, Canada, a spot cargo of sulfur for December shipment was sold to Indonesia at a CFR price of USD 750/tonne, driving local prices down by USD 75/tonne compared to the previous week.
Following this transaction, buyers’ psychological price expectations in the Indonesian and Indian markets have retreated to the CFR USD 700–750/tonne range. Chinese buyers’ maximum willingness-to-pay is capped at CFR USD 700/tonne, which translates to an equivalent delivered cost (CFR) of USD 620–630/tonne when benchmarked against domestic prices.
In North Africa, multiple cargoes ranging from 30,000 to 70,000 tonnes have already been procured from the Middle East, the Baltic Sea, and the Black Sea regions at CFR prices of USD 780–790/tonne. Meanwhile, offers from North American suppliers for North African destinations are quoted at CFR USD 750/tonne.
Although OCP Group in Morocco has steadily increased its plant operating rates over recent weeks, low utilization persists in the two major markets—Indonesia and China—resulting in weak import demand for sulfur. This situation continues to weigh on the global spot market, forcing suppliers to lower prices to clear unsold spot cargoes scheduled for December shipment.
Market Drivers
Outlook for the Next 30–60 Days: Sulfur Prices Expected to Weaken Further
With downstream consumer demand yet to recover, spot sulfur prices are expected to continue their downward trajectory. While geopolitical instability in the Middle East continues to constrain supply, prices will likely maintain their downtrend until demand picks up. Several fertilizer and nickel producers have indicated that they would only consider ramping up plant operating rates once CFR prices fall into the USD 600–700/tonne range.
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