Sulphur: Internal and external "dual heat" prices topped

Spring ploughing with fertilizer to promote heat demand geopolitics detonated the outer disk

Since March, the domestic sulfur market has once again peaked, with a monthly increase of more than 40%, under the influence of internal and external "dual heat" such as the demand for spring ploughing fertilizers and the escalation of the situation in Russia and Ukraine

Fertilizer for spring ploughing to promote heat demand

March is the peak season for spring ploughing fertilizer, especially some phosphate fertilizer enterprises that reduced production last year began to increase their load at the beginning of this year, resulting in a rapid increase in the demand for sulfuric acid and a sharp rise in prices, which also heated up the sulfur market

Statistics from Henan Chemical Industry Network show that as of the end of March, the prices of sulfuric acid in Shandong, Henan, and Hubei reached 960 yuan, 900 yuan, and 1,150 yuan respectively, with monthly increases of 48%, 60%, and 75%, respectively.

According to Li Peixin, Purchasing Director of Jiangsu Dipu Technology Co.

Geopolitical explosion

As a bulk inorganic chemical product, China's sulfur has always had a high degree of external dependence.

Market information shows that as of March 31, the CFR of China's imported sulfur has risen to US$449, up 22% month-on-month and 136% year-on-year, which is equivalent to RMB higher than the quotations of many domestic companies

"The conflict between Russia and Ukraine has been more than a month.

　　Statistics show that from January to February this year, the domestic sulfur imports were 552,000 tons and 452,000 tons respectively, accounting for 41.

　　Meng Jianjie said that from the volume of sulfur imports, it can be seen that geopolitical instability has triggered a domino effect in the energy market

　　Port inventories continue to decline

　　Recently, the continuous decline in port inventories is also one of the important factors contributing to the high level of sulfur prices

　　Shao Huiwen analyzed that uncertain factors such as the global epidemic and the international situation will still exist, and it is difficult to determine whether the supply of imported sulfur can be further supplemented in the later stage.

　　Industry insiders believe that the application of fertilizer for spring ploughing in April is coming to an end, and downstream demand has slowed down significantly, and with the release of domestic production capacity, the price of sulfur has gradually stabilized.