Contact us
+34 977 524 650

APRIL 2021

The (not so positive) implications of being a circular economy model


  • The crisis caused by COVID-19 has had a notable impact on those companies that, to a greater or lesser extent, depend on raw materials from the chemical sector.


As we have already commented in previous installments of our blog, AFEPASA is a clear example of circular economy and, although this concept has been a trend for some time now, our organization has been so since the moment of its foundation, 128 years ago.

99% of our production is carried out using a circular economy, since sulphur is obtained, for the most part, as a by-product derived from the extractions carried out by the petrochemical and mining industries. In this way, we give a new use to the waste of another industry, valuing it, avoiding its bad treatment and obtaining products with a high added value and with the highest standards of sustainability and respect for the environment.

However, this business model can sometimes have implications when it comes to successfully putting our products on the market. This dependence on the aforementioned industries causes the supply and demand, and therefore the price, of our solutions to be conditioned by an external context.

All this has ended up causing an unusual and extraordinary situation in the sulphur market, not only at a national or European level, but also at a global level; and that is summarized in a scarce availability of sulphur in the market and, therefore, in an increase in its price. To get an idea of ​​the magnitude and unsustainability of the current context, it should be noted that, in just 10 weeks, the price of sulphur as a raw material has risen dramatically, reaching historic levels never seen before.

Added to this situation is the rise in plastic and paper, materials used for the packaging of products, and to which must be added a strong impact on the price of freight, caused by the reorganization made in the logistics industry, who have compensated, in some cases, the lower flow with increases that exceed 50%.

The final consequence is a very stressed market situation. From AFEPASA we want to state that we work and will continue working, every day, in order, in line with our commitment to our customers, to continue offering products of the highest quality, at the most competitive prices possible according to the current market and ensuring the supply of our customers for sure.