Tampa:
Third-quarter contracts for the price of molten sulfur delivered to Tampa settled on July 15, players reported, with the market’s two largest buyers agreeing to deals with primary suppliers at $195/lt CFR. The updated price represents a $3/lt increase on the second-quarter $192/lt CFR contract, hitting squarely at the center of recent predictions of a $0-$5/lt jump.
The contract’s final landing spot softened from earlier expectations of a possible $10/lt increase due to a confluence of factors, including recent price erosion in the key international markets of China and Brazil. Freight hikes also played a factor, with industry players describing a tussle between buyers and sellers to determine precisely who would be on the hook for these potentially short-term logistics increases.
Further price support came from supply issues in the U.S. domestic market, sources argued, a lingering effect of lost production resulting from the ongoing COVID-19 pandemic.
Following Tampa higher, delivered pricing to Houston was seen moving to $180/lt CFR, rising from $177/lt in Q2, while NOLA deliveries lifted to $184/lt from $181/lt in the prior period.
U.S. Gulf:
Energy Industry monitor Genscape reported a July 8 shutdown of the 174,000 barrel/d crude distillation unit (CDU) and 85,000 barrel/d vacuum distillation unit (VDU) at the Citgo refinery in Corpus Christi, Texas. A 44,000 barrel/d coking unit was also reportedly shut on July 10. The plant’s 69,000 barrel/d No. 2 fluidic catalytic cracking unit (FCC) has been offline since June 18.
Marathon halted production from a 145,000 barrel/d FCC at the company’s Galveston Bay, Texas, facility in the early hours of July 9. Increased activity was observed from the unit on July 10, although activity failed to reach operational levels.
The Galveston Bay plant’s 66,000 barrel/d Ultraformer 4 catalytic reformer was shut on July 11, just days following an unplanned shutdown running from June 29 through July 7. Genscape reported the reformer’s successful restart on the evening of July 12.
A 40,000 barrel/d CDU at Valero’s Corpus Christi West refinery was taken offline on July 10. Multiple units at the plant’s East section were reported going offline on July 14, including a 105,000 barrel/d CDU, a 70,000 barrel/d VDU, and a 17,000 barrel/d coking unit.
Flint Hills restarted operations on a 96,000 barrel/d FCC at the company’s Corpus Christi West plant on July 13, Genscape noted. The unit had been offline since June 20 due to a mechanical failure.
Mild softening in international values combined with rising freights to pressure U.S. Gulf price ideas lower, players indicated, with most quoting the market in the $190-$195/mt FOB range, down from the last reported $190-$200/st FOB.
Brazil:
Last-done Brazil spot transactions were heard in the $221-$230/mt CFR range, unmoved from the prior report. Indications for the next round of business were heard shifting toward the lower end of the spread.
Early third-quarter import contracts were reported landing in the $221-$223/mt CFR range, increasing from $213-$214/mt CFR in the prior period.
Caribbean:
The owners of the Limetree Bay refinery, located on the U.S. Virgin Island of St. Croix, have filed for bankruptcy, Reuters reported, after announcing the permanent shutdown of the 210,000 barrel/d plant in June. A temporarily shutdown was ordered in May after the refiner repeatedly ran afoul of EPA regulators.
Limetree is reportedly seeking to obtain up to $25 million in financing through the bankruptcy action. The plant, once a 600,000 barrel/d behemoth boasting the largest capacity in the Western Hemisphere, was restarted in February after sitting idle since 2012.
Vancouver:
Weakening exchange rates were noted shaving values from USD-priced markets, resulting in netbacks falling to around $175-$178/mt FOB, off from $178-$180/mt FOB reported previously.
Alberta:
Alberta netbacks shifted slightly to $65-$108/mt FOB due to reported declines at Vancouver, down from $65-$110/mt FOB noted one week earlier.
West Coast:
Marathon took a 105,000 barrel/d CDU offline at its Wilmington, Calif., refinery during the week, Genscape reported on July 12. Decreased activity was simultaneously observed from a 42,000 barrel/d coking unit and a 15,000 barrel/d catalytic reformer.
West Coast prills were seen slipping to $175-$178/mt FOB, falling from $178-$180/mt FOB at last report. Molten sulfur contracts for tons loading from West Coast locations was reported in the $150-$155/lt FOB range, a change from $140-$155/lt FOB in the second quarter.
China:
Last-done spot imports at China fell to the $213-$216/mt CFR range, sources said, slipping from $217-$220/mt CFR one week earlier. Players attributed the lower values to firming freight costs and a weaker dollar, rather than to weakening demand.
ADNOC:
The Abu Dhabi National Oil Co. offered prilled sulfur cargoes at a reported $175/mt FOB Ruwais for loading in July, a $10/mt decrease from the prior month’s $185/mt FOB.
Qatar:
Solid sulfur produced by Qatar Petroleum and marketed by Muntajat was noted at $179/mt FOB Ras Laffan for the current month. Muntajat was posted at $183/mt FOB in June, a $4/mt difference.
Kuwait:
Sulfur exported from Kuwait moved to $180/mt FOB for July, sources said, falling from $183/mt FOB in the prior month.