1、 Price trend
| Gamma-PGA (gamma polyglutamic acid) |
According to the latest benchmark price data from Business Society, sulfur prices have experienced a clear downward adjustment this week:
On February 1st, the price was relatively high at 4210.00 yuan/ton.
February 5th: The benchmark price has dropped to 4053.33 yuan/ton. Compared to the beginning of the month, it decreased by 3.72%, and on February 5th alone, it dropped by 0.82%.
This price correction is mainly the result of the combined action of two short-term market behaviors:
On December 2nd, the main producer Shandong Dongming Petrochemical lowered its sulfur ex factory quotation by 200 yuan/ton at once. This magnitude of price adjustment directly affects market confidence and increases bearish sentiment.
As the Spring Festival approaches, the pre holiday stocking of downstream factories has basically ended. At the same time, facing historically high prices, buyers have generally turned to wait-and-see and adopted an “on-demand procurement” strategy, resulting in a lack of sustained buying support in the market.
2、 Market situation
Although prices have declined this week, it needs to be viewed in a larger context, as this decline occurred after a sustained surge in the previous month. In January, sulfur prices rose overall, with a significant monthly increase. At present, the price of around 4053 yuan/ton is still in the “one-year high” range according to the statistics of Business Society. This reflects that the fundamental support of the market is still solid.
3、 Future prospects:
Overall, the fundamental factors supporting the long-term high sulfur prices, such as global supply shortages and new demand from the new energy sector, have not changed. Therefore, this week’s downturn is more likely to be a short-term technical correction rather than a reversal of the trend.
It is expected that the market will enter a “high-level oscillation” stage before and after the Spring Festival. The next direction of prices will mainly depend on the intensity of downstream factories’ demand for resuming work and replenishing inventory after the Spring Festival, as well as the production progress of important Indonesian nickel wet smelting projects.
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