Section: CRUSU Market Intelligence

Meena Chauhan , Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.

The processed phosphates market will be a major indicator for price direction for sulphur markets in 2022. A significant downward correction is expected in DAP prices with early signals prices could soften in the February-March period.

Meena Chauhan, Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.

A seasonal decline in weather conditions in the eastern Atlantic will hinder operations at Jorf Lasfar in Morocco through the end of 2021 and into 2022. In South Africa, port congestion problems were challenging at Richard’s Bay with vessels subjected to 15 day wait times, increasing demurrage costs.

Meena Chauhan , Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.

The processed phosphates market view is supporting sulphur demand. The average DAP price for Morocco f.o.b. is forecast to rise significantly on 2020 levels. As the leading end use for sulphur consumption and trade, this has implications for pricing. The expected downward correction in DAP in 2022 will likely lead to a parallel decline in sulphur, at a time when supply is expected to improve in the oil and gas sector, adding further pressure for prices to ease.

Significant capacity additions in the Middle East are still awaited. The more positive outlook for fuel demand is providing support to seeing these projects ramp up in the coming months. New supply is expected from Saudi Arabia following the commissioning of a gas project in 2020, sulphur availability is likely to improve from the country through the second half of 2021 and into 2022 as a result.

Meena Chauhan , Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.

Major projects to consider in the short term outlook are Barzan in Qatar and the Clean Fuels Project in Kuwait. Combined these would add over 3 million t/a of sulphur capacity.

Meena Chauhan, Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.