Carbon disulfide

CS2 Market Dynamics Intelligence, Analysis, and Forecast

I. Market Dynamics Intelligence
Price Trends
- Significant Price Disparities Within Shandong Province: As of June 23, 2026, Shandong Hongyang Chemical Co., Ltd. quoted RMB 5,000/ton for standard-grade carbon disulfide (GB specification); Shandong Jinhua Chemical Co., Ltd. quoted RMB 5,800/ton for the same grade; while Jia’en Chemical (Shandong) Co., Ltd. quoted as high as RMB 10,800/ton. Liaocheng Xinli New Materials Co., Ltd. quoted RMB 8,550/ton, and Shandong Yuxuan Chemical Products Co., Ltd. quoted RMB 10,500/ton.
- Volatile Price Movement: Between June 11 and June 23, 2026, CS2 prices in Shandong Province exhibited pronounced volatility. For example, quotations from certain suppliers in Liaocheng City declined from RMB 11,950/ton on June 11 to RMB 6,880/ton on June 17, then rebounded to RMB 10,500–10,800/ton by June 23.
- Widening Regional Price Differentials: Shanghai Hanyang Chemical Products Co., Ltd. (Zhejiang Province) quoted RMB 6,300/ton—significantly lower than several high-price suppliers in Shandong, yet still higher than the RMB 4,930/ton quote in Jinan City.

Supply-Demand Relationship
- Temporary Supply Tightening: Production reductions at some plants due to scheduled maintenance, combined with a sharp rise in sulfur feedstock prices (cumulative increase of 136% from late February to June 12), have driven CS2 prices upward.
- Divergent Demand Patterns: Demand from the traditional viscose fiber industry remains stable, whereas demand for high-purity (≥99.9%) products in advanced markets—such as pharmaceutical intermediates and electronic chemicals—has grown markedly, fueling premium pricing for high-end grades.

Industry Developments
- Policy Impact: Implementation of MIIT’s “Access Conditions for the Carbon Disulfide Industry” has accelerated the phase-out of outdated production capacity, raising market concentration. Global CS2 output reached 1.6 million tons in 2025, with China accounting for over 50%; however, high-end production capacity remains largely import-dependent.
- Technological Upgrading: Leading enterprises are adopting closed-loop recovery technologies (e.g., pressure swing adsorption) to reduce production costs and developing high-value-added derivatives (e.g., dimethyl sulfoxide), thereby enhancing competitiveness.

II. Analysis and Judgment
Key Price Drivers
1. Cost Support: Sustained increases in sulfur prices—port inventories having fallen to a historic low of 812,000 tons—coupled with rising natural gas and other raw material costs, constitute the primary price support for CS2.
2. Supply-Demand Dynamics:
- Supply Side: Stricter environmental regulations have forced small- and medium-sized enterprises (SMEs) to halt operations; leading firms are expanding market share via technological upgrading, although periodic maintenance continues to constrain short-term supply.
- Demand Side: Traditional sector demand remains steady, while stringent purity requirements in high-end sectors (e.g., electronic chemicals) are driving price differentiation among premium products.
3. Market Structure: Under an oligopolistic competitive landscape, top-tier enterprises consolidate advantages through “full-industry-chain integration”—controlling upstream resources, implementing midstream closed-loop environmental management, and extending downstream into high-value applications—making it increasingly difficult for SME suppliers to compete on price.

Risk Factors
- Raw Material Price Volatility: Sulfur supply is vulnerable to geopolitical risks (e.g., Middle East shipping disruptions); any significant price correction could erode CS2’s cost-based price support.
- Regulatory Changes: Further tightening of environmental standards may compel additional producers to suspend operations for rectification, exacerbating supply constraints.
- International Trade Frictions: Rising global protectionism could hinder exports of high-end CS2 products, dampening demand growth.

III. Future Outlook
Short Term (1–3 Months)
- High-Volatility Pricing: Supported by elevated sulfur prices and temporary supply constraints, CS2 prices are expected to remain at elevated levels, with mainstream quotations in Shandong Province ranging between RMB 8,500–11,000/ton; high-purity (≥99.9%) product prices may exceed RMB 12,000/ton.
- Narrowing Regional Price Gaps: Optimized logistics costs and supplier price-adjustment strategies are expected to narrow the price differential between Zhejiang and Shandong provinces to within RMB 500/ton.

Medium Term (6–12 Months)
- Optimization of Capacity Structure: Newly commissioned capacity from industry leaders will gradually come online; however, increased environmental compliance investments will raise industry-wide average production costs, shifting the price center upward to RMB 9,000–11,500/ton.
- Expansion of High-End Markets: Growing demand from pharmaceutical and electronics sectors will lift the share of high-purity products to over 30%, lifting industry gross margins from 18% to 22%.

Long Term (1–3 Years)
- Increased Industry Concentration: Fully integrated, full-industry-chain enterprises are projected to capture over 60% of total market share, while SMEs progressively exit the market or transition to contract manufacturing models.
- Emergence of Green Premium: Enterprises certified for carbon footprint transparency and capable of resource-efficient utilization of by-products will command a 10–15% price premium, pushing the industry’s average price above RMB 12,000/ton.