Tampa:
Third-quarter molten sulfur contracts were valued at $195/lt CFR, a $3/lt increase from $192/lt CFR in the second quarter.
Refinery utilization lifted slightly for the week ending July 30, the U.S. Energy Information Administration (EIA) reported. Refiners operated at a combined 91.3 percent capacity during the period, up 0.2 percent from the prior week’s 91.1 percent rate. The weekly rate topped the year-ago 79.6 percent, while trailing the 91.8 percent five-year average.
The EIA reported average daily crude inputs at 15.920 million barrels/d for the week, up 45,000 barrels/d from the week-ago 15.875 million barrels/d.
U.S. Gulf:
Genscape reported restarts of a 96,000 barrel/d fluidic catalytic cracking unit (FCC) and a 22,000 barrel/d alkylation unit at the Valero Corpus Christi West refinery on Aug. 2. The FCC had been offline since July 28, while the alkylation unit was powered down on July 29. Valero was also noted taking a sulfur recovery unit (SRU) offline at its Corpus Christi East plant on Aug. 2. That unit was restarted later the same day.
Citgo on Aug. 2 restarted the 69,000 barrel/d No. 2 FCC at its plant in Corpus Christi. Initially shut on June 18 during an unplanned loss of third-party steam supply, the unit was subsequently kept offline for maintenance.
Marathon halted production on a 66,000 barrel/d catalytic reforming unit at the company’s plant in Galveston Bay, Texas, according to an Aug. 3 report. Multiple short outages were reported from the unit between late June and mid-July.
Falling values at Brazil combined with rising offshore freight rates to produce softening price ideas in the Gulf sulfur export market. Sources quoted values in the $175-$185/mt FOB range, a $10/mt decline from the week-ago $185-$195/mt FOB.
Brazil:
Players reported recent Brazil sulfur pricing in the $216-$221/mt CFR range, softening from the prior $221-$230/mt CFR level. Despite the falling values, market players noted ongoing difficulties from some buyers to acquire needed tonnage, suggesting the lower prices could be “short-lived” as a result.
Third-quarter contracts were reported at $221-$223/mt CFR, increasing from $213-$214/mt CFR in the prior report.
Caribbean:
The shuttered Limetree Bay refinery in the U.S. Virgin Island of St. Croix will require several months to fully decommission, according to Reuters. Restarted in February after sitting idle for more than 10 years, the plant was shut by environmental regulators in May following a series of EPA violations, including the release of petroleum droplets over a number of local neighborhoods.
Investors have thus far balked at a request from ownership for an additional $1 billion cash injection needed to bring the plant into full EPA compliance. As a result, Limetree filed for Chapter 11 bankruptcy in July, hiring investment banker Jeffries Financial Group Inc. to facilitate the sale of the plant.
The 200,000 barrel/d facility once boasted a 650,000 barrel/d capacity, the largest refinery in the Western Hemisphere at the time.
Vancouver:
Vancouver prills were seen softening to $173-$176/mt FOB for the week, primarily due to firming international shipping costs, sources said. The market was previously reported in the $175-$178/mt FOB range.
“Softening on international prices is interesting, with many blaming the decrease on vessel freights,” one trader noted. “The additional cost is unable to be passed along (to buyers). Meanwhile, China’s inventories continue to drop and other world markets are keeping supply balanced.”
Alberta:
Sources continued to note supply hiccups out of Alberta, stemming from both an ongoing Suncor turnaround and reported operational issues at Syncrude.
Netbacks on Alberta sulfur slipped to the $68-$106/mt FOB range due to falling netbacks at Vancouver, a decline from the week-ago $68-$108/mt FOB. The range included both molten material contracted into the U.S. and prilled tons selling internationally through the Vancouver export market.
West Coast:
Genscape on Aug. 2 reported the restart of a 65,000 barrel/d cat feed hydrocracker at the Chevron refinery in Richmond, Calif. A 44,000 barrel/d hydrocracker restarted at the same time, but remained below normal activity levels on Aug. 2. The two units, along with a third 60,000 barrel/d hydrocracker, were knocked offline on July 25 due to a power interruption. The 60,000 barrel/d hydrocracker was reported restarting on Aug. 4.
West Coast price ideas were noted in the $173-$176/mt FOB range, falling from $175-$178/mt FOB at last report. Molten sulfur contracts for delivery in the third-quarter were quoted at $150-$155/lt FOB, shifting from $140-$155/lt FOB in the second quarter.
China:
Last-done on the China spot import market continued to be heard in the $213-$216/mt CFR range.
ADNOC:
Abu Dhabi National Oil Co. (ADNOC) pricing continued to be posted at $175/mt FOB Ruwais, sources said, unchanged from July levels.
Qatar:
Solid sulfur loading from Qatar softened to $164/mt FOB Ras Laffan for loading in August, a $15/mt decline from $179/mt FOB in the prior period.