SunSirs: With a Period of Weak Demand Approaching, Refinery Price Adjustments Led to a Decline in Sulfur Prices from Their Highs

Price trend

According to the latest data from SunSirs' benchmark price index, sulfur prices experienced a clear decline this week:

February 1st: The price was at a relatively high level of 4,210.00 RMB/ton.

February 5th: The benchmark price had fallen to 4,053.33 RMB/ton. Compared to the beginning of the month, this represents a decrease of 3.72%, with a 0.82% drop on February 5th alone.

This price correction was primarily the result of the combined effect of the following two short-term market behaviors:

1. On February 2nd, Shandong Dongming Petrochemical, a major producer, lowered its ex-factory price for sulfur by 200 RMB/ton in a single adjustment. This significant price reduction directly impacted market confidence and increased bearish sentiment.

2. As the Spring Festival approaching, downstream factories had largely completed their pre-holiday stockpiling. At the same time, facing historically high prices, buyers have generally adopted a wait-and-see approach and were purchasing only as needed, leading to a lack of sustained buying support in the market.

Market conditions 

Although prices declined this week, this needs to be viewed in a broader context, as the drop occurred after a sustained surge over the previous month. In January, sulfur prices rose overall, with a significant monthly increase. The price of around 4,053 RMB/ton was still within the "one-year high" range according to data compiled by SunSirs. This reflects that the market's underlying support remains strong.

Future outlook:

Overall, the fundamental factors supporting persistently high sulfur prices (such as tight global supply and increased demand from the new energy sector) remain unchanged. Therefore, this week's decline is more likely a short-term technical correction rather than a reversal of the trend.

It is expected that the market will enter a "high-level consolidation" phase around the Chinese New Year. The next direction of prices will mainly depend on the strength of restocking demand from downstream factories after the Chinese New Year, and the progress of important Indonesian nickel hydrometallurgical projects.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.