Tampa: The improving phosphate market cast a rosy glow over domestic sulfur last week, sources said, causing some market players to soften their opinion of a predominantly bearish outlook as recently as a week ago.
“The improved outlook of the fertilizer producer, along with the refinery complex going into turnaround season, seems to be changing the pulse of the market,” said one contact.
The start of widespread refinery turnarounds coincided with a drop-off in Gulf cargo availability. “I’m not seeing any more distressed tons in the Gulf here recently,” said one source. “We seem to be settling into a good supply-demand pattern.”
First-quarter molten sulfur contracts were valued at $95/lt, $15/lt below the fourth-quarter 2015 price of $110/lt.
Domestic refining capacity fell last week, according to the U.S. Energy Information Administration (EIA). Utilization was 87.3 percent for the week ending Feb. 19, a 1.0 percent drop from the previous week’s 88.3 percent. The number also landed just shy of the year-ago 87.4 percent, but was ahead of the 86.2 percent five-year average.
The EIA also noted a decrease in average daily crude inputs. Inputs averaged 15.685 million barrels/d, a 163,000 barrel/d decline from the prior week’s 15.848 million barrels/d.
U.S. Gulf: Sources called the Gulf market flat at $85/mt FOB.
Vancouver: Vancouver market players reported no change in the price of formed product. Last-done spot was quoted in a range of $80-$90/mt FOB.
The Chinese spot market continued to be called $90-$95/mt CFR.
Sources put Alberta netbacks at (-)$27-$60/mt FOB, unchanged from last report.
West Coast: Prill sold from the West Coast was quoted at $75-$85/mt FOB, unmoved from the previous week.
First-quarter molten sulfur contracts ran $65-$115/lt FOB, sources said.
ADNOC: Formed sulfur produced by the Abu Dhabi National Oil Co. was priced at $105/mt FOB Ruwais for February, a $17/mt decline from the $122/mt FOB January price.
Aramco: Saudi Aramco cargoes for March loading were valued at $90/mt Jubail, $25/mt below February’s $115/mt.
Tasweeq: The official February Qatar sulfur price was $89/mt Ras Laffan, a $30/mt drop from $119/mt in January.