Tampa:
Based both on tight domestic supply and large price increases from key international markets, sources continued to predict an upward move in the second-quarter price of molten sulfur delivered to Tampa. Some players speculated that values could jump by $80/st, an 83.3 percent increase over the first-quarter’s $96/lt CFR contract.
Domestic refinery utilization pushed higher for the week, the U.S. Energy Information Administration (EIA) reported, extending a rebound from recent lows resulting from the February polar vortex. Refiners operated at a total 81.6 percent capacity for the period ending March 19, a 5.5-point increase from 76.1 percent reported previously. The rate continued to trail both the year-ago 86.3 percent and the 87.4 percent five-year average, however.
Crude inputs also moved higher, topping the 14 million barrel/d mark for the first time since Feb. 12. Inputs were logged at an average 14.389 million barrels/d for the week, up 956,000 barrel/d from the 13.433 million barrels/d rate posted previously.
U.S. Gulf:
Genscape reported ongoing unit ramp-ups at the Royal Dutch Shell Plc refinery in Deer Park, Texas, one of the last Texas refineries to attempt a restart following damage sustained during the February cold snap.
A 39,000 barrel/d hydrotreater was noted restarting on March 19, while other units, including a 70,000 barrel/d fluidic catalytic cracking unit (FCC) and a 67,000 barrel/d hydrocracker, were seen slowly moving closer to a restart. The hydrocracker was reportedly nearing operational levels on March 22.
The final Texas plant to restart, Chevron’s Pasadena unit, was reported ramping up on March 24. Increased activity was observed at a 116,000 barrel/d crude distillation unit (CDU), a 56,000 barrel/d FCC, and a 35,000 barrel/d hydrotreater. Activity nevertheless remained below operational levels on March 24, Genscape noted.
Marathon shut the 243,000 barrel/d Pipestill 3B crude section on March 23 at the company’s Galveston Bay, Texas, plant.
Price ideas on sulfur loading from the U.S. Gulf were heard in the $175-$180/mt FOB range, based on recent business reported out of Brazil.
Brazil:
Brazil state-owned oil company Petroleo Brasileiro SA (Petrobras) on March 24 announced the signing of contracts in the sale of its RLAM refinery to Mubadala Capital for $1.65 billion, Reuters reported.
The sale to the Abu Dhabi-based Mubadala was announced in February, and still awaits approval from Brazil’s Administrative Council for Economic Defense (CADE) regulatory body. In an effort to reduce debt, Petrobras has announced an intent to sell eight refineries from its portfolio.
Last-done sulfur imports at Brazil continued to be heard at $216/mt CFR, steady from the prior report.
Vancouver:
Last-done out of Vancouver continued to be heard in the $175-$183/mt FOB range. Falling values at China could translate to $170-$180/mt CFR values at Vancouver in the next round of business, sources warned, should China fail to rebound.
Alberta:
Prilled and molten sulfur originating from Alberta netted back (-)$31-$113/mt FOB to sellers, steady from one week earlier.
West Coast:
Prills loading from the West Coast were expected to fall in the $175-$183/mt FOB range, unmoved from the prior report. West Coast molten contracts were quoted at $70-$77/lt FOB for delivery in the first quarter. Values are expected to rise in Q2.
China:
Refinery output at China was up 15 percent year-over-year in the January-February period, according to data released by the China’s National Bureau of Statistics (NBS) and reported by Reuters.
Throughput was noted at an average 14.13 million barrel/s for the period, roughly equal to December 2020, but rising from 12.07 million barrels/d in January-February 2020. The NBS typically releases combined numbers for the first two months of the year due to China’s Lunar New Year holiday, the largest national holiday of the year.
Outputs were projected to decline in the March-June period, however, likely slipping below the 13.5 million barrel/d mark due to planned turnarounds.
At least seven refineries were scheduled to go offline starting in the first quarter, Platts reported, including Sinopec’s Changling Petrochemical, Jinan Petrochemical, Jinling Petrochemical, and Jiujiang Petrochemical. The Huizhou refinery, owned by CNOOC, reportedly shut down on March 4, while Sinopec’s Cangzhou Petrochemical and two PetroChina facilities were expected to power down in May.
Run rates for China state-owned refineries were noted averaging 82.8 percent in February, rising from 80.3 percent in January and up from the year-ago 66.4 percent. Additional data reported by Platts saw run rates slip to 78.8 percent in March.
Spot prices for solid sulfur imported to China were heard softening to the $190s/mt CFR, off from $200-$210/mt CFR noted previously. Sources were divided on whether the market’s softening represented a new ceiling in the China sulfur price, or merely a period of consolidation prefacing a renewed bull run.
ADNOC:
March prill prices were noted at $183/mt FOB Ruwais, $55/mt above February’s $128/mt FOB level.
Qatar:
March offers from Muntajat were quoted at $183/mt FOB Ras Laffan, rising $58/mt from $125/mt FOB in February.