Tampa:
With the dawn of the third quarter just weeks away, market speculation on the potential valuation of Q3 Tampa molten sulfur contracts was heating up.
Most sources speculated that an increase on the second-quarter $192/lt CFR contract was imminent, propelled by neutral-to-firm international pricing throughout the second quarter, low reported port sulfur inventories at China, lingering COVID-driven supply tightness in the U.S. markets, and increasing international and domestic freight rates.
Potential drags on the market included continued increases in domestic refinery operation that have potentially alleviated a supply crunch felt in the market since early in the COVID-19 pandemic, as well as the potential implications of rising freight costs, particularly should production rates of either finished goods or feedstocks be impacted.
While some argued a rollover from Q2 levels was possible, most agreed a potential increase of $0-$10/lt from current levels was likely.
Refining capacity lifted higher for the week ending June 11, according to the U.S. Energy Information Administration. Utilization was noted at 92.6 percent for the period, up 1.3 percent from the prior week’s 91.3 percent. The current numbers outpaced both the year-ago 73.8 percent and the 90.1 percent five-year average.
Crude inputs were noted at an average 16.337 million barrels/d for the period, a 412,000 barrel/d increase from the week-ago 15.925 million barrel/d level.
U.S. Imports:
July-April sulfur imports firmed 3.9 percent year-over-year, to 3.02 million st from 2.91 million st. Imports moved 16.6 percent higher in April, to 334,887 st from the year-ago 287,245 st.
U.S. Exports:
Sulfur exports totaled 66,860 st in April, a 29.0 percent decrease from 94,144 st in April 2020. Exports were counted at 880,435 st in July-April, down 36.1 percent from the year-ago 1.38 million st.
U.S. Gulf:
Price ideas on sulfur cargoes exported from the U.S. Gulf were noted firming to $190-$200/mt FOB based on reported netback potential, up from $180-$190/mt FOB at last report.
Brazil:
Brazil spot imports lifted to a wide $225-$236/mt CFR range, sources said. The market was previously quoted at $218-$222/mt CFR. Players indicated second-quarter contract values in the $213-$214/mt CFR range.
Vancouver:
Vancouver export pricing was reported steady at $178-$180/mt FOB. Rising prices in China and Brazil could draw Vancouver netbacks higher in the next round of business, market players said.
Alberta:
Alberta netbacks continued to track in the $65-$110/mt FOB range, unmoved from the prior report.
West Coast:
Price ideas on prilled sulfur loading from the West Coast were steady at $178-$180/mt FOB. Sources called second-quarter molten contracts $140-$155/lt FOB, increasing from $70-$77/lt FOB in the prior period.
China:
With China sulfur inventories falling below 2 million mt for the first time since second-quarter 2019, spot import pricing was noted firming to the $217-$220/mt CFR range, rising from $210-$215/mt CFR in the prior report.
ADNOC:
Prill offers from the Abu Dhabi National Oil Co. were heard at $185/mt FOB Ruwais for the month of June, up $2/mt from $183/mt FOB one month earlier.
Qatar:
Qatar sulfur pricing stood at $183/mt FOB Ras Laffan for loading in June, unchanged from the previous month.