Tampa: Negotiations for a new third-quarter price of molten sulfur delivered to Tampa were underway, sources said, though upcoming holidays coupled with industry events may conspire to delay a settlement until the last week in July.
Speculation as to where the third-quarter price might land continued among industry watchers, with much of the conjecture settling in the neighborhood of either a flat rollover or a slight dip.
Large-scale sulfur consumers continued to report zero difficulty in procuring needed quantities, and despite U.S. refinery utilization falling below the five-year average in recent weeks, increased production from the summer drive-time season was said to keep the market flush with supply.
Operating rates for U.S. refineries rose for the week ending June 20, according to the U.S. Energy Information Administration. Total capacity utilized was put at 88.5 percent, a climb of 1.4 percent from the previous week’s 87.1 percent. Refineries ran at 90.2 percent during the same week in 2013, with the five-year average at 89.8 percent.
Molten sulfur delivered to Tampa was $133/lt for the second-quarter.
U.S. Gulf: U.S. suppliers quoted the current Gulf export market at $130-$140/mt FOB, but believed the next round of trade would be conducted in a range of $135-$145/mt FOB.
Vancouver: Syncrude continued to work out mechanical kinks at its newly reopened Alberta refinery, sources said, though the hiccups were described as minor and were unlikely to pose any long-term impediments to production.
Despite the hurdles, the facility was thought to be operating at nearly full capacity, or roughly 2,000 mt/d based on 2013 numbers, and was said to be considering melting stores of blocked sulfur to contribute to the molten market.
Sources called spot sales from Vancouver in a range of $140-$160/mt FOB, an increase from the previous week’s $135-$145/mt FOB.
Alberta levels were flat at a reported (-)$20-$80/mt.
West Coast: The California sulfur market was called $130-$140/mt FOB, an increase from the $125-$135/mt FOB quoted previously.
Sources reported keeping an eye on rising domestic levels in relation to the West Coast market, and speculated that prices could tick up further with the next round of business.
Benelux: The Benelux price of sulfur was $158-$172/mt for the second quarter. A new third-quarter price is expected in the coming weeks.
ADNOC: ADNOC sulfur for June was listed at $150/mt, up $5/mt from May levels.