Price trend

According to the Commodity Market Analysis System of SunSirs, sulfur prices in East China continued to rise since August. At the beginning of the month, sulfur prices were at 853.33 RMB/ton. On August 17th, sulfur prices rose to 1,026.67 RMB/ton, an increase of nearly 200 RMB/ton, with a monthly increase of 20.31%.

Analysis review

The domestic sulfur market showed a strong upward trend, with prices rising significantly. Due to the strong demand of phosphate fertilizer, the price continued to rise, downstream construction increased, and there was a positive attitude towards sulfur procurement. The sulfur market had a positive attitude, shipments from refineries were smooth and inventory was lower. Some manufacturers were reluctant to sell. In addition, due to the impact of a buying mentality, sulfur prices continued to rise. As of the 17th, the mainstream price of solid sulfur in refineries in Shandong province was around 1,000-1,130 RMB/ton; The mainstream price of liquid sulfur was between 950-1,110 RMB/ton.

The downstream sulfuric acid price rose significantly. On August 17th, the average domestic sulfuric acid price was 226.00 RMB/ton, an increase of 66 RMB/ton compared to the initial price of 160.00 RMB/ton, an increase of 41.25%. The demand for phosphate fertilizer was strong, downstream construction had increased, and the demand for sulfuric acid had increased. Acid companies had smooth shipments, and the price trend had increased. At the same time, the price of raw material sulfur increased, and cost support was good. Under the sentiment of buying up but not buying down, the price of sulfuric acid had significantly increased.

The market for ammonium biphosphate continued to rise. On August 17th, the average market price for 55% powdered ammonium biphosphate was 2,833.33 RMB/ton. At the beginning of the month, the average market price for 55% powdered ammonium biphosphate was 2,633.33 RMB/ton, with a price increase of 7.59%. The phosphate fertilizer market continued to improve, with an increase in inquiries for ammonium biphosphate. Most manufacturers suspended quotes and stopped receiving orders. The market supply was tight, and traders were reluctant to sell. In addition, the high prices of raw materials led to strong cost support, leading to a continuous increase in the trading focus of ammonium biphosphate plants.

Market outlook

According to sulfur analysts from SunSirs, the operation of sulfur refining plants was stable, mainly maintaining active shipment. The downstream phosphate fertilizer market was optimistic, and the supply and demand performance showed that downstream prices were bullish, providing good support for sulfur. There was currently no pressure on on-site supply, and it is expected that the short-term sulfur market will be consolidated to be stronger. In the future, specific attention should be paid to the downstream follow-up situation.

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