Tampa: Negotiations for first-quarter sulfur prices will not begin for another month, but both sides were beginning to stake out their positions last week.
Higher world prices pushed by traders paying more for sulfur at China, along with weather-related disruptions to rail shipments from Canada, were working in favor of suppliers, who seemed to think they should get as much as $25/lt more than the current $75/lt for molten sulfur delivered to Tampa.
The phosphate industry, by contrast, was pointing to lackluster sales of its products, layoffs by PotashCorp, and lower prices for its products as reasons to hold the line. They also noted that PotashCorp was shutting down one of its two processing plants at White Springs, and sulfur that would have gone there will wind up on the market.
In addition, oil refineries were running at high capacity rates, which would put more sulfur into the system. Last week, refinery operating capacity rates increased 3 percent, to 92.4 percent from the previous week’s 89.4 percent, according to the U.S. Department of Energy. A year earlier, refineries were operating at 90.6 percent, while the five-year average was 86.86 percent.
The fourth-quarter price for molten sulfur delivered to Tampa remained at $75/lt.
U.S. Gulf: The price for Gulf prill rose to $70-$80/mt FOB, compared with the previous range of $60-$70/mt FOB.
Vancouver: Higher prices in China were beginning to have an impact at Vancouver, where prices were up last week. The spot price range last week was pegged at $70-$75/mt FOB, up from the previous week’s $50-$70/mt FOB.
Regardless of what happens with the negotiations for Tampa molten sulfur prices for the first quarter, a source said the extremely low price of sulfur from parts of Alberta will likely rise next quarter. The lowest price found at Alberta was -$65/mt FOB.
West Coast: As the price rises at Vancouver, so do prices on the West Coast, which were said to be in the range of $73-$78/mt FOB.
Benelux: The fourth-quarter price range for Benelux was $108-$122/mt.
ADNOC: The November ADNOC price was $80/mt FOB, and $73/mt FOB at Qatar.