Updated Nov 26, 2022 17:04

Sulphur Market in Iran

Market Overview
The Iranian sulphur market soared to $ in , rising by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, posted a buoyant increase. Over the period under review, the market hit record highs in and is expected to retain growth in the near future.

In value terms, sulphur production surged to $ in estimated in export price. Overall, production continues to indicate significant growth. As a result, production attained the peak level and is likely to continue growth in the immediate term.


Consumption
In , the amount of sulphur consumed in Iran stood at tons, growing by % compared with the previous year. Overall, consumption posted a resilient expansion. Sulphur consumption peaked at tons in 2016; however, from 2017 to , consumption remained at a lower figure.

The size of the sulphur market in Iran amounted to $ in , increasing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption posted resilient growth. Sulphur consumption peaked in and is expected to retain growth in the near future.


Market Forecast
Driven by increasing demand for sulphur in Iran, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of sulphur in Iran were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for sulphur. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Iran remains a net exporter of sulphur; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.