Tampa:
Members of the Teamsters Local 120 union agreed to a new employment contract proposal at the 102,000 barrel/d Marathon Petroleum St. Paul Park refinery, The Star Tribune reported, ending a five-month lockout. The new agreement, covering approximately 200 employees, will cover employment at the facility into 2027.
Third-quarter Tampa molten sulfur contract negotiations continued for the week, sources said. Speculation continued to center on a potential $0-$10/lt increase from the second quarter’s $192/lt CFR valuation.
U.S. refineries operated at 92.2 percent of total capacity for the week ending July 2, the Energy Information Administration (EIA) reported, a 0.7 point decline from the prior week’s 92.9 percent, but above both the year-ago 77.5 percent and the 91.0 percent five-year average.
The EIA described crude inputs softening to an average 16.115 million barrels/d for the period, a 184,000 barrel/d decline from the previous 16.299 million barrel/d average.
U.S. Imports:
Imports of sulfur were up 0.2 percent for May, to 281,865 st from the year-ago 281,230 st. July-May import totals firmed 3.6 percent, to 3.30 million st from the prior-year 3.19 million st.
U.S. Exports:
Sulfur exports for May stood at 99,942 st, off 32.8 percent from the year-ago 148,627 st. July-May exports fell 35.8 percent, to 980,377 st from 1.63 million st reported one year earlier.
U.S. Gulf:
Gulf export price ideas remained in the $190-$200/mt FOB range, sources said. Increasing international freight rates were noted pushing a larger share of available netbacks closer to $190-$195/mt FOB.
Brazil:
Market sources continued to point to recent import business in the $220s/mt CFR, with some noting an increased level of interest clustered toward the bottom of the range at $221-$223/mt CFR.
Early indications for third-quarter contract values hinted toward a rise into the low $220s/mt CFR, players indicated. Second-quarter agreements were reported at $213-$214/mt CFR.
Vancouver:
Vancouver prill price levels were unchanged at $178-$180/mt FOB.
Alberta:
The province of Alberta has negotiated to forgo years of contracted tolling payments to the troubled 79,000 barrel/d Sturgeon Refinery northeast of Edmonton, instead purchasing a direct 50 percent equity stake in the facility, the CBC reported.
Alberta will pay a combined C$825 million to Northwest Refining and Canadian Natural Resources Ltd. (CNRL) for the stake, canceling C$10 billion in tolling charges previously scheduled to pay out over the next 10 years.
Alberta sulfur pricing held steady in the $65-$110/mt FOB range, although some warned that firming freight costs could chip away at netbacks.
West Coast:
West Coast prill pricing was noted at 178-$180/mt FOB, unmoved from the previous week.Third-quarter West Coast molten contracts were noted in the $150-$155/lt FOB range.
China:
China spot pricing remained in the $217-$220/mt CFR range for the week, sources said.
ADNOC:
Abu Dhabi National Oil Co. prills were heard softening $10/mt in July, to $175/mt FOB Ruwais from $185/mt FOB in June.
Qatar:
Muntajat solid sulfur pricing for July was noted falling to $179/mt FOB Ras Laffan, down from $183/mt FOB in the prior month.
Kuwait:
Sources put Kuwait prill postings at $180/mt FOB for loading in July, down from $183/mt FOB heard in June.