Tampa: Negotiations continued last week for first-quarter contract prices for molten sulfur to Tampa. The parties were getting closer to an agreement, but no deal had been reached.
The molten market was tighter than that for prill, both in the U.S. and in Europe. While still in balance, it was likely to grow a little tighter during the first quarter because of turnarounds already started at refineries.
Weather problems in Canada, where the oil sands provide an abundance of sulfur, were also contributing to market tightness. Sources said freezing, melting, and refreezing on Canadian roadways was a major factor in accidents.
The U.S. Department of Energy said refinery operating capacity rates fell by 4.3 percent last week, from 87.9 percent to 83.6 percent. A source said the change was the result of a combination of factors, including turnarounds at refineries.
Another reason was the fact that storage capacity for finished products such as gasoline, diesel, and distillate was essentially full, leaving little room for additional product. The increase in finished product was the result of diminished demand.
U.S. Gulf: Gulf Coast prices were hovering at about $150/mt FOB.
Vancouver: Spot prices at Vancouver were in the range of $140-$150/mt FOB.
West Coast: Prices for the West Coast were in the same range as Vancouver.
Benelux: New first-quarter prices for molten sulfur were in the $168-$180/mt FOB range, higher than the current U.S. market for molten, which was at $160/lt to Tampa. As is the case in the U.S., Europe’s demand for molten was stronger than for prill sulfur.
ADNOC: The FOB Ruwais price was $150/mt FOB for January.