Tampa:
Dillon Transport (Burr Ridge, Ill.), a primary carrier of both dry and liquid sulfur from terminals located at the Port of Tampa to inland locations, permanently shut down as of midnight on Aug. 31, FreightWaves reported.
Sources believed the shutdown was unexpected, and that a replacement carrier had not yet been named on Sept. 2. Dillon maintained nine terminals in the U.S., including locations in Tampa and Mulberry, Fla.
The third-quarter price of molten sulfur delivered to Tampa was contracted at $195/lt CFR, a $3/lt increase from $192/lt CFR in the prior period.
Refinery utilization slipped lower for the week ending Aug. 27, the U.S. Energy Information Administration (EIA) reported, to 91.3 percent from the week-ago 92.4 percent. The rate tracked above both the year-ago 76.7 percent and the 91.1 percent five-year average, however.
Daily crude inputs softened to an average 15.938 million barrels/d, a 134,000 barrel/d decline from the previous week’s 16.072 million barrels/d rate.
U.S. Gulf:
Hurricane Ida resulted in extensive energy industry shutdowns throughout the region. Up to 95 percent of Gulf oil production was reportedly taken offline ahead of the storm’s arrival, while Genscape noted preemptive operational shutdowns at numerous Louisiana refineries starting on Aug. 28, including Shell’s Norco facility; the Valero plants at St. Charles and Meraux; the Placid Port Allen facility; Phillips 66’s Alliance refinery; the PBF Energy facility at Chalmette; and Marathon’s 578,000 barrel/d Garyville plant.
The PBF facility at Chalmette was reported successfully restarting a 99,000 barrel/d crude distillation unit (CDU) ahead of Ida’s arrival on Aug. 26.
ExxonMobil’s partial shutdown of the 520,000 barrel/d Baton Rouge site on Aug. 28 included powering down the facility’s 120,000 barrel/d Pipestill 9 and 97,000 barrel/d Pipestill 7 crude sections, as well as one of two 116,000 barrel/d fluidic catalytic cracking units (FCCs). Ida’s arrival forced the plant to completely shut down on Aug. 29-30, Genscape noted.
Approximately 75 percent of Louisiana’s 2.95 million barrel/d refining capacity was impacted by the storm, Platts reported. Most of the impact was concentrated toward the eastern and central parts of the state, with reduced effects noted from the Lake Charles and Port Arthur, Texas, areas.
Following the storm, Platts reported minor damage at Marathon’s Garyville plant, while a Reuters report described building damage at Shell’s Norco facility. The Phillips Alliance plant, located near Belle Chasse, was partially flooded following a levee break, NOLA.com reported.
Widespread power outages were considered the primary hurdles to a timely return to production, with a number of refineries projected to require weeks before restarts can be attempted. More than 1 million Louisiana and Mississippi households were without power on Aug. 31, according to Reuters.
With both refinery production and NOLA-area phosphate production offline for the week, Ida was noted minimally impacting the domestic sulfur market, at least through the short-term. “No real change on the sulfur market since Ida,” one source said. “It is kind of a wash on supply and consumption in the area.”
No new sulfur business was reported out the U.S. Gulf for the week. Last-done continued to be heard in the $173-$181/mt FOB range, steady from the prior report.
Brazil:
Last-done Brazil imports remained in the $210-$216/mt CFR range. Third-quarter contracts were noted at $221-$223/mt CFR, increasing from $213-$214mt CFR in the prior quarter.
Vancouver:
Recent firming in the China import sulfur market was seen trickling down to Vancouver, with reports indicating concluded pricing at $180-$190/mt FOB for tons loading in September. The market was previously reported at $173-$176/mt FOB.
Alberta:
Alberta netbacks firmed to $68-$120/mt FOB based on firming values out of Vancouver, up from $68-$106/mt FOB at last report.
West Coast:
West Coast price ideas were heard lifting to $180-$190/mt FOB from $173-$176/mt FOB in the prior report. Molten sulfur contracts were reported at $150-$155/lt FOB for loading in the third quarter, an increase from $140-$155/lt in the prior period.
China:
Last-done at China continued to be heard in the $230-$233/mt CFR range, with new offers reported in the $240s/mt CFR.
ADNOC:
Abu Dhabi National Oil Co. prill offers were last noted at $175/mt FOB Ruwais.
Qatar:
Muntajat solid sulfur offers for September loading were heard climbing to $178/mt FOB Ras Laffan, up $14/mt from $164/mt FOB in August.