Tampa: Speculation on the second-quarter contract price of molten sulfur delivered to Tampa continued at full tilt last week.
A weakening U.S. Gulf prill market, along with rumored cuts to Middle East spot offers, led more market players to voice expectations of a $20-$30/lt drop from the first-quarter contract price of $95/lt.
Describing current market conditions as “gloomy,” some nevertheless held to predictions of a $10-$15/lt decrease, putting overall speculation on a second-quarter settlement in the $65-$85/lt range.
Refinery utilization ticked lower for the week, according to the U.S. Energy Information Administration (EIA). Capacity was reported at 89.0 percent for the week ending March 11, just slightly below the previous week’s 89.1 percent, but above the year-ago 88.1 percent and the five-year average of 85.3 percent.
The EIA put average daily crude inputs higher for the week. Refiners processed an average 15.996 million barrels/d, up 85,000 barrel/d from the previous week’s 15.911 million barrels/d.
U.S. Gulf: Observers noted a declining Gulf sulfur market last week. Price ideas slipped to the $70-$75/mt FOB range, sources said, down from $75-$80/mt FOB at last report.
Vancouver: The Vancouver formed sulfur market continued to be quoted at $75-$85/mt FOB for both contract and spot, although some market players anticipated a downward move in the near-term. “Vancouver is holding, but I wouldn’t bet on it lasting,” said one source.
Traders tended to put the market in the $80-$85/mt FOB range, while some producers called levels down to $75/mt FOB.
The Chinese spot market continued to be called $85-$90/mt CFR.
Netbacks to Alberta producers fell in the (-)$27-$60/mt FOB range, unchanged from the week before.
West Coast: Sources called the West Coast prill market flat at $70-$80/mt FOB. Molten contracts fell in the $65-$115/lt FOB range for the first quarter.
ADNOC: The price of Abu Dhabi National Oil Co. prill was $88/mt Ruwais for March. ADNOC sulfur was offered at $105/mt FOB in February.
Aramco: Middle East offers continued to slip heading into the second quarter. Saudi Aramco announced April pricing of $85/mt FOB Jubail last week, a $5/mt decrease from $90/mt in March.
Tasweeq: The March price of Qatar formed sulfur was listed as $87/mt FOB Ras Laffan, a $2/mt drop from February’s $89/mt FOB level.