Impact Of High-Cost Canadian Sulfur Production On The Sulfur Trade (1f9fd97d-3bd6-474a-a684-7bf7fdcb4fc0)

During the last 30 years, a dramatic increase in the supply of byproduct sulfur substantially reduced the share of the market held by Frasch-mined (non-by-product) sulfur in North America. Even though Canadian sulfur production is not discretionary, the geographic remoteness from the large US markets and the high transportation costs associated with delivering sulfur to those markets has meant that Canadian producers act like discretionary producers in many important ways. They have effectively replaced the US Frasch producers as the cost-marginal sulfur source to large US markets. Implications of this change in market structure include more volatile sulfur prices and longer sulfur price recessions.