Sulphur Prices Continue to Slide
Spot cargoes from the Middle East to North Africa have been concluded at $830/ton CFR, marking a decline of $20/ton compared to last week’s peak.
Buyers are seeking offers in the $780–$830/ton CFR range. A Brazilian fertilizer producer has indicated a bid as low as $770/ton CFR. Meanwhile, rumors suggest a transaction involving US Gulf Coast material destined for Santos at $800/ton CFR; however, this deal remains unverified.
Additionally, there are reports of Vancouver-origin sulphur sold to Indonesia at $770/ton CFR, though this too is unconfirmed. It is evident that downstream consumers across various regions are pushing for lower prices, even below levels previously accepted by suppliers.
Market Drivers
Outlook for the Next 30–60 Days: Sulphur Prices Expected to Extend Downward Trend
With significant consumption sectors—including fertilizers, nickel, and certain industrial segments—maintaining low run rates, sulphur prices are poised to continue their decline. Financing obstacles and insufficient credit lines at current price levels hinder spot transactions. Many downstream enterprises face prolonged challenges due to raw material costs being economically unviable. As the fertilizer sector enters its off-season with ample existing inventories, there is no urgent incentive for buyers to procure feedstock until prices fall further.
Faced with current pricing, consumers prefer to maintain low sulphur inventory levels. Despite supply constraints in the Middle East and Kazakhstan, persistent weak demand continues to pressure sellers’ asking prices.
The floor for price declines is supported by limited supply from the Middle East and baseline demand driven by certain buyers who must enter the spot market in January.
Comments
0