Tampa: Preliminary discussions were underway last week, rather than actual negotiations, but it was clear the price will come down.
The world market was in a seeming tailspin, although the situation in the U.S. was much more stable. Still, the world market will have a strong influence on negotiations for molten sulfur delivered to Tampa, and the Tampa price works as a benchmark for other U.S. markets.
The speculation several weeks ago was that the Tampa price would fall $15-$25/lt. One source last week, who is on the supply side, said it could fall by as much as $50/lt. Phosphate producers will be careful not to allow prices to fall so low that supplies will be blocked at Canada and possibly other facilities that have storage room, however.
Because of the July 4 holiday and the early publishing date for Green Markets, information on refinery operating capacity rates was not available from the U.S. Department of Energy.
The second-quarter price was $155/lt delivered to Tampa.
U.S. Gulf: The U.S. Gulf price range was $80-$110/mt FOB.
Vancouver: The spot price for sulfur from Vancouver continued to fall last week, down to the $75-$100/mt FOB range. China was offering only $80-$100/mt CFR, which held back shipments from Vancouver and also suppressed the price.
One of the reasons China dropped its price, according to one source, was that it has been making a lot of purchases of crushed sulfur from Russia, which was cheaper than other forms of sulfur. The Russian product has problems, however, one of which is excessive dust.
The announcement by Imperial Oil that it was shutting down its refinery at Nova Scotia will have little or no impact on sulfur supplies because very little sulfur comes from the facility. It will continue as a terminal for Imperial, however.
West Coast: Sulfur prices on the West Coast were in the $78-$103/mt FOB range.
Benelux: The price range for the second quarter was $175-$185/mt, but that range was expected to fall about $30/mt for the third quarter.
ADNOC: The ADNOC price for June was $140/mt FOB. Sources said recent prices in the Arab Gulf region were in the sub-$100/mt FOB range, however, and Qatar was at $100/mt FOB last week. The posted price will undoubtedly fall.