Price trend
According to the price monitoring of SunSirs, after the New Year’s Day holiday, the sulfur price easily fell below 1,000 RMB/ton after a one-time drop of 20 RMB/ton. Since the beginning of January, domestic sulfur prices have been adjusted several times, and sulfur prices in East China rose in a“stepwise”manner. As of February 3, the price of sulfur rose from 993.33 RMB/ton on January 5 to 1,100 RMB/ton, an increase of 10.74%, to 1100 RMB/ton.
Analysis review
The downstream sulphuric acid market has dropped sharply. The prices of mainstream sulphuric acid manufacturers in Shandong have fallen, the manufacturers’inventory is large, and the downstream demand is general. Individual acid companies are subject to environmental protection restrictions, and their operations are unstable. The holiday is approaching, and companies have begun to take holidays. Later, the domestic market for sulfuric acid will be weak. The demand for phosphate fertilizer is acceptable, the company's sales are smooth, and the market trend is strong.
Sulfur continued to increase in the second half of 2020. As of December 31, the price rose to 1,013.33 RMB/ton, breaking the 1,000 RMB/ton mark. The fundamental reason lied in the continued improvement of external disk support, the concentration of cargo rights in the port, the good attitude of the holders, the firm operation of the market, and the low inventory of the refineries in various regions in China, the stable demand from downstream factories and traders, and the sellers had no pressure on sales, the price rose steadily.
Market outlook
At present, the inventory of domestic refineries remains low, downstream factories and traders enter the market to replenish goods on demand, demand is stable, and manufacturers sell smoothly. Foreign stocks are tight and prices are high, and the attitude to support the market is obvious. The port's cargo rights are concentrated, and the offer of holders rises. It is expected that the sulfur market will continue to rise before the Spring Festival.
