Tampa: Sources reported all quiet in the domestic market last week, with the exception of continued speculation about the first-quarter price of molten sulfur delivered to Tampa.
Speculation continued to center on the likelihood of a price increase for the quarter, based on elevated January 2015 pricing in the Middle East and Chinese numbers said to be in the $170s/mt CFR.
Another source expected a rollover to be more likely, however, citing rumors of first-quarter Brazilian contracts settling at rollover levels. Additionally, molten supply remains strong, said the source, though others pointed to tightness in the Gulf market as a possible chink in supply heading into 2015. Negotiations were not expected to begin until the New Year.
The fourth-quarter price of molten sulfur delivered to Tampa was $129/lt CFR.
U.S. refinery capacity remained strong for the week ending Dec. 19, according to data obtained from the U.S. Energy Information Administration. Refinery utilization was put at 93.5 percent of capacity, unchanged from the most recent report. The rate was higher than both the year-ago rate of 92.7 percent and the 89.8 percent five-year average.
Daily refinery inputs rose slightly for the week, averaging 16.341 million barrels/d, an increase of 40,000 barrels/d over the previous week’s 16.301 million barrels/d.
U.S. Gulf: Spot tons in the Gulf market were hard to come by. Traders quoted prices in a range of $135-$140/mt FOB, unmoved from the previous report.
Vancouver: With prices in the Chinese spot market reportedly lingering in the $170s/mt CFR, sources said the Vancouver spot market held its own over the holidays. Values were quoted in a range of $140-$150/st FOB, while fourth-quarter contracts were reported in the $140s/mt FOB.
Cautious optimism that Alberta-based refiner Syncrude 21 would return to production was dashed as the massive 2,000 mt/d facility halted loading once again. The plant was said to have resumed production briefly in early December.
Alberta sulfur was called (-)$10-$75/mt, unmoved from the previous report.
West Coast: West Coast sulfur was quoted at $135-$140/mt FOB.
Sources expected first-quarter 2015 molten contracts to begin settling after the first of the year. Sources expect suppliers to seek an increase from fourth-quarter levels of $90-$130/lt FOB based on strength in the international markets.
Caribbean: The shuttered Hovensa refinery on St. Croix will stay closed following a vote from the U.S. Virgin Islands rejecting the proposed sale and reopening of the facility.
Once the largest refinery in the western hemisphere, a deal was in place between Atlantic Basin Refining and current owners Hess Corp. and Venezuela’s state-run PDVSA. Lawmakers voiced uncertainty regarding language in the agreement releasing the sellers from all liability in the sale, however, as well as concerns about the buyers’ ability to raise the estimated $1 billion required to jumpstart the facility. The facility was closed in January 2012.
Benelux: The third-quarter price of sulfur to the Benelux consortium was $158-$172/mt FOB.
ADNOC: The ADNOC price of sulfur for December was $150/mt FOB. January 2015 sulfur was quoted at $158/mt FOB.
Aramco: Sulfur sold by Saudi Aramco was called $125/mt FOB for December. Prices were set to rise to $158/mt FOB for January 2015, an increase of $33/mt.
Aramco announced a new partnership with Indonesian state-owned Pertamina to upgrade that country’s oil refineries. Aramco, along with China’s Petroleum and Chemical Corp. (Sinopec) and Japan’s JX Nippon Oil and Energy, plans to in