Tampa: Speculation on the second-quarter price of molten sulfur delivered to Tampa began to heat up last week.
After rising to $147/lt in the first quarter – an $18/lt jump from fourth-quarter 2014 levels – sources were divided on the direction prices could head next. Some expected a rollover, while others predicted a slight decrease based on softening offshore markets.
Molten sulfur delivered to Tampa was $147/lt for the first quarter.
Local United Steelworkers Union (USW) negotiations with individual refineries continued last week, according to reports. The USW’s national body reached a tentative deal with lead oil company negotiator Shell Oil Co. on March 12, but the agreement was not immediately ratified by workers at eight of 15 striking facilities.
Union members at Tesoro’s three West Coast refineries were due to vote on the new contract last week, and striking employees of Shell’s Deer Park, Texas, refinery were expected to return to work on or around March 30 after having voted to approve their local contract.
U.S. refinery utilization rose last week, marking a third consecutive week of production increases. Capacity was 89.0 percent for the week ending March 20, according to the U.S. Energy Information Administration, a 0.9 percent increase from the previous week’s 88.1 percent, and also higher than last year’s 86.0 percent and the five-year average of 85.9 percent.
Average daily crude inputs were also up, growing to 15.530 million barrels/d. That level was 94,000 barrels/d above the previous week’s daily average of 15.436 million barrels/d.
U.S. Gulf: The Gulf offshore market continued to soften last week. Prices dipped to $145-$150/mt FOB based on updated transactions into Brazil, producers said. The previous price was quoted at $150-$155/mt FOB.
Vancouver: Despite Chinese port inventories that were said to total just 1 million mt of sulfur, market sources said negative sentiment in the international market saw delivered pricing to China drop for the week, down to a range of $160-$165/mt CFR.
Sources were divided on the effect China’s price rollback may have on the Vancouver market. Some predicted further declines in the next round of business, while others expected continued high netbacks based on sales to U.S. customers and the strength of the U.S. dollar relative to the Canadian dollar.
Most sources quoted the Vancouver market in a range of $155-$165/mt FOB.
Alberta refiner Syncrude 21 suffered an unexpected production cutback last week, and was reported to be loading at about 50 percent of capacity on March 26. The tightened production came as the refinery prepares for a 45-day turnaround, scheduled to begin in April.
Recent transactions netted back a range of $5-$85/mt FOB to sulfur producers in Alberta.
West Coast: West Coast prills were unchanged at $150-$160/mt FOB.
ADNOC: The March price of Abu Dhabi sulfur was $175/mt FOB, though a new price for April is expected shortly.
Aramco: Saudi Aramco priced its April offerings at $165/mt FOB.
Tasweeq: Sulfur produced in Qatar was $164/mt FOB for March. An April price is expected to be announced soon.