Sulfur Hexafluoride Price Trend and Forecast

Sulfur Hexafluoride Regional Price Overview

Get the latest insights on price movement and trend analysis of Sulfur Hexafluoride in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Sulfur Hexafluoride Price Trend for the First Half of 2024

Asia

Sulfur hexafluoride (SF6) gas is widely used in the electrical industry due to its excellent insulating properties and high dielectric strength. It is primarily produced through a chemical reaction between sulfur and fluorine, often in specialized industrial facilities. During the first half of the year 2024, the sulfur hexafluoride prices were observed to fluctuate within close limits for the majority period. In Asia, particularly India and China, driven by a stable and supportive supply and demand dynamic, the prices were mostly firm with moderate fluctuations.
 

Sulfur Hexafluoride Price Chart

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In India, the growing economy and rapid infrastructure development led to an increased demand for sulfur hexafluoride which helped rationalize the upstream and downstream equation in the region. Similarly, the State stimulus for the Real Estate sector boosted the industry in China as well. In the first quarter, the limited working days because of the New Year holidays affected the inventory surplus volumes. However, the supply started dominating in the second quarter. The slight improvements in demands in the latter phases offset the supply pressure. Overall, with occasional fluctuations, mixed market sentiments were observed for sulfur hexafluoride during H1’24.

Europe

During the said period, the European sulfur hexafluoride market was even more consolidated than the Asian markets. It was a time of multifaceted struggle for the European stakeholders. Temporary supply constraints and uneven stock accumulation within the region were primarily attributed to the supply chain issues lingering because of the Red Sea crisis. Freight costs and delivery times increased which gave serious headaches to the suppliers. On the other hand, the lack of interest in procurement from the downstream sectors was attributed to the struggling manufacturing sector. The consumer demands were sluggish amidst sluggish international trade and export opportunities. With this complex interplay of supply and demand, the sulfur hexafluoride prices remained range-bound for the majority of H1’24.

North America

The price trajectory of the American sulfur hexafluoride markets was not very different from the Asian and European markets, as the prices were found to be oscillating here as well. The rising geopolitical tensions affected the American markets, too. Receding international trade rendered the suppliers more and more reliant on domestic consumption alone to sustain the trade margins.

With evolving trade and freight dynamics, the suppliers here acquired a cautious approach early on and, therefore, were able to avoid excess upstream cost pressure. The downstream demands from the domestic and neighboring markets were steady and led to the equilibrium between the upstream and downstream outlooks. Overall, careful inventory management and demand stability resulted in the buoyancy of sulfur hexafluoride prices in the North American markets as well.

Analyst Insight

According to Procurement Resource, the Sulfur Hexafluoride prices are expected to behave in a similar manner in the coming months. Not much deviation is expected in the current market dynamics.
 

Sulfur Hexafluoride Price Trend for the Second Half of 2023

Asia

In the Asia-Pacific region, sulfur hexafluoride prices exhibited an upward trend throughout H2’23. The increase in market momentum was primarily driven by growing demand from the agricultural sector and the rising cost of crude oil. Under OPEC regulations, reductions in natural gas and crude oil exports by Saudi Arabia and Russia further elevated production costs for sulfur hexafluoride. Improved trading sentiments, particularly in China, also contributed to the rise in sulfur hexafluoride prices, with significant growth observed from July to September 2023. In the fourth quarter, the Chinese SF6 market continued its firm escalation, while the Indian market remained stable due to balanced supply and demand dynamics.

Europe

In Europe, sulfur hexafluoride prices increased due to strong demand from end-user sectors, particularly agriculture. The rising cost of crude oil also played a significant role in the upward price trend. Although the European economy experienced slow growth, it was moving in a positive direction, further supporting the bullish nature of sulfur hexafluoride prices. However, the European market faced challenges in the fourth quarter due to trade disturbances caused by geopolitical conflicts. Despite these hurdles, domestic demand helped maintain market stability, although short-term price variations were observed.

North America

North American sulfur hexafluoride prices saw positive influences from rising demand in the agricultural sector and increased fertilizer production. However, supply disruptions due to higher water levels in rivers affected the market. Economic growth, reduced inventory levels, and lower interest rates also contributed to the upward price trend. In the fourth quarter, the market experienced mixed sentiments, with transportation issues, particularly related to the Panama Canal, constraining regional supplies. The downstream demand remained weak, leading to a wavering market performance.

Analyst Insight

According to Procurement Resource, the price of Sulfur Hexafluoride is estimated to be driven by the escalating cost of feedstock materials and rising trading disruptions in European countries.
 

Sulfur Hexafluoride Price Trend for First Half of 2023

Asia

In the production of sulfur hexafluoride, sulfur acts as the main feedstock material, and thus, the price trend of sulfur hexafluoride is mostly dependent on it. The market activities of feedstock remained bearish in the first and second quarters of 2023 due to low rates of procurement from the end-user sector. Along with this, the trading sentiments and overall consumption of buyers were also hurt by fluctuating market sentiments, resulting in a decline in the price trend of sulfur hexafluoride.

Europe

In the first two quarters of 2023, the price trend of sulfur hexafluoride suffered from the low interest of buyers in the feedstock market. The oil and petroleum industries also witnessed a downward trajectory that eventually hampered the growth of sulfur hexafluoride prices. In addition to this, oscillations in the freight charges, high level of inventories, and downfall in trading activities also played their role in keeping the sulfur hexafluoride prices in the negative zone.

North America

The North American market of sulfur hexafluoride was highly affected by the low consumption rates of downstream industries and unclear economic conditions of the region. In addition to this, the feedstock prices also suffered from the adverse crisis being faced by the fertilizer and agricultural industries. Amid plunging economic conditions, investors were also reluctant to invest in this sector long-term, and thus, due to sliding market sentiments in North America, the price trend of sulfur hexafluoride declined.

Analyst Insight

According to Procurement Resource, the price trend of Sulfur Hexafluoride is estimated to follow a declining trend as the cost support from the feedstock market seems feeble, and rising economic uncertainties will also hamper the growth of sulfur hexafluoride prices.

Procurement Resource provides latest prices of Sulfur Hexafluoride. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.