Tampa: A number of sulfur traders have reported lengthened railcar turnaround times following deliveries in recent weeks. “Operationally, our railcars are enduring increased delays as the CSX begins changing service parameters,” said one source, adding that the delays remained minimal. “No cars are sitting at destination for very long.”
The second-quarter contract for molten sulfur delivered to Tampa was valued at $70/lt, $5/lt below the first-quarter contract.
Domestic refinery utilization pressed higher again last week, its third consecutive period of increased capacity, according to the U.S. Energy Information Administration. Utilization was calculated at 95.0 percent for the week ending May 26, a 1.5 percent increase from the prior week’s 93.5 percent, and also considerably higher than both the year-ago 89.8 percent and the five-year average of 91.4 percent.
Average daily crude inputs turned in a record 17.510 million barrels/d for the week, a 229,000 barrel/d increase from the 17.281 million barrels/d noted in the previous report.
U.S. Gulf: Saudi Aramco plans to invest a minimum $12 billion to expand its Motiva refinery, located in Port Arthur, Texas, according to numerous reports.
Aramco assumed sole ownership of Motiva and the 636,500 barrel/d facility, the largest refinery in the U.S., on May 1 after splitting with former partner Royal Dutch Shell Plc. In addition to the initial $12 billion, Aramco is considering investing a further $18 billion into its U.S. business over the next five years, reports indicated.
Market players described Gulf solid sulfur pricing in the $70-$75/mt FOB range, unchanged from the previous report.
Vancouver: Observers noted no change in the Vancouver spot price, calling last-done in the $73-$77/mt FOB range. Framed at the upper end by Vancouver pricing, Alberta sulfur producers’ netbacks were described at (-)$55-$10/mt FOB, with the range’s low end netting back from molten contract tons earmarked for the U.S. market.
A Canadian National Railway (CN) employees’ union called off a planned strike after reaching a tentative labor agreement on May 29. The work stoppage, expected to begin on May 30, could have negatively impacted buyers supplied by rail from Canadian sources. “A CN strike would affect a significant amount of sulfur moving into both the U.S. and Vancouver markets,” said one source.
Market watchers described firming sentiment in the Chinese market. While last-done remained in the $90-$94/mt CFR range for the week, sources reported buyer interest at $94-$98/mt CFR, voicing expectations for the next round of business to land in that range.
QPSPP: QPSPP announced a Qatar sulfur price at $78/mt FOB Ras Laffan for June loading, a $2/mt increase from the $76/mt FOB price for May.