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2008 Sulphur Market Review |
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Year 2008 is a different year for domestic sulphur market. Sulphur prices fell sharply. With losses of assets of more than CNY4 billion, many producers and traders were forced to close down. But now it is difficult to forecast sulphur price trend on uncertainties of upstream petroleum and natural gas markets, downstream sulphric acid and fertilizers, freight level, global economy and many new policies. However, we must take the following factors into consideration. First, Global sulphur supply will surpass demand. The unbalance between supply and demand will be widening after 2007-2008 and onward following launch of new capacities in Middle East. Second, sulphur margins will be slim. Third, sulphur prices can not keep at high levels for long time on recent years’ supply-demand and compulsory production. Accordingly, surlphur prices fell to CNY600-800/tonne, a two-year-ago level after a collapse in August-September, indicating an era of slim profits for the sulphur market. |
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