The price has dropped by more than 70%!

Recently, Kuwait KPC and Qatar Muntajat successively announced the August sulfur prices (FOB price), which were US$90 (ton price, the same below) and US$77 respectively, down US$337 and US$351 from the previous month, or 79% and 82% respectively.

Domestically, on August 2, the price of sulfur sold by Shandong local refining companies such as Lihuayi, Dongming Petrochemical, and Huifeng Petrochemical was 850-980 yuan

Sulphur analysts from the business community believe that the domestic sulphur market is in a game of supply and demand, the downstream situation has fallen, and the demand continues to be sluggish

International situation disrupts sulfur market

Sulfur is mainly used in sulfuric acid manufacturing, pesticide and chemical fertilizer manufacturing and other industries

At the beginning of this year, due to the conflict between Russia and Ukraine and the overhaul of the sulfur plant in the United Arab Emirates, the supply of sulfur decreased by 1.

Longzhong information industry analyst Manuo analyzed that the export price of phosphate fertilizer in May was nearly 2,000 yuan higher than the domestic price

After the maintenance of the sulfur plant in the United Arab Emirates, the global sulfur supply will increase by 1 million tons per quarter, and even the phenomenon of "accumulation" of sulfur in ports appeared in mid-June

Resonance of the same frequency in the upstream and downstream markets

"The sharp drop in the price of sulfur in July is related to the rapid decline in the price of the chemical fertilizer market

"Since mid-to-late June, the domestic fertilizer market has begun to cool down, urea has fallen by nearly 1,000 yuan from the high point, and the price of synthetic ammonia has also fallen along with it

Sulfuric acid, another downstream industry of sulfur, also saw a sharp drop in July, with the price dropping from 998 yuan at the beginning of the month to 748 yuan at the end of the month, an overall drop of 25% during the month

Late low volatility prevails

Many industry analysts such as Longzhong Information and Business Club believe that from the analysis of downstream demand, market supply, and international market, the overall performance of the sulfur market is "strong supply and weak demand", and the market will still decline weakly

From the perspective of demand, due to the lack of downstream sentiment such as phosphate fertilizer and sulfuric acid, the demand for sulfur is limited, and the enthusiasm for entering the market is general

From the perspective of supply, there are currently low-priced sources of goods in the market, there is resistance to the sale of refineries, and inventories of local refineries are accumulating.

From the perspective of the international market, production in the Middle East has resumed, and sulfur at a lower price is still being shipped to China, which has resulted in the accumulation of inventories in ports in East China, which has put a huge pressure on the price of sulfur in domestic refineries

"In the medium and long term, it is the downstream demand that restricts the price of sulfur

Manuo believes that with the current domestic production and port stocks, it is unrealistic for sulfur to return to a high price of more than 3,600 yuan, but at the current price of 800-900 yuan, there will be manufacturers "hunting the bottom" to dilute the cost