Tampa:
Tampa molten contracts were valued at $183/lt CFR for fourth-quarter delivery, a $12/lt fall from $195/lt CFR in the third quarter. Rising international values were expected to lift Tampa higher in first-quarter 2022.
Operable U.S. refining capacity inched higher for the week, the Energy Information Administration (EIA) reported. Nationwide utilization ran at a total 88.8 percent for the period ending Nov. 26, up from the previous 88.6 percent rate and also leading last year’s 78.2 percent, while trailing the 88.9 percent five-year average.
Crude inputs slipped to an average 15.631 million barrels/d for the week, the EIA indicated, falling 9,000 barrels/d from 15.640 million barrels/d noted in the prior report.
U.S. Gulf:
Genscape reported a Nov. 26 shutdown of the 105,000 barrel/d HCU-2 hydrocracker at the Motiva refinery in Port Arthur, Texas. The unit was previously offline on Nov. 20-21 due to a process upset.
Marathon on Nov. 29 suffered an outage of the 66,000 barrel/d Ultraformer 4 catalytic reforming unit at the company’s Galveston Bay, Texas, facility. The shutdown was accompanied by significant decreases in furnace activity. The unit was reported restarting early on Nov. 30.
The TotalEnergies plant at Port Arthur restarted its 80,000 barrel/d ACU-2 crude section on Dec. 1. The unit, along with a 66,000 barrel/d hydrotreater and 10,000 barrel/d coking unit, were reported going offline for maintenance on Nov. 14.
Price ideas on material loading from the U.S. Gulf were noted firming to the $230-$240/mt FOB range, with many players predicting prices above $240/st FOB should a new sale conclude today. The market was previously reported at $200-$210/mt FOB.
Brazil:
New spot transactions at Brazil lifted pricing to the $284.50-$295/mt CFR range, up from $279-$290/mt CFR in the prior report. Rumored trading up to $299/mt CFR was not able to be confirmed on Dec. 2.
Contracts for sulfur delivered in the fourth quarter were noted at $234/mt CFR, up from $221-$223/mt CFR in Q3.
Vancouver:
Recent Vancouver values were noted in the $205-$210/mt FOB range. Ongoing logistics constraints stemming from recent flooding and mudslides in British Columbia were reported blunting current price potential, effectively preventing new vessels from loading.
“All of (Vancouver’s) tons are stranded in Alberta these days,” said one player. “Vancouver hasn’t been done at (higher levels) because it is out of product due to weather/logistics issues,” a second source agreed. Most players expected an increase to the $230s/mt FOB in the next round of business.
Alberta:
Alberta sulfur netbacks were indicated in the $68-$140/mt FOB range, sources said.
West Coast:
Chevron Corp. restarted the 40,000 barrel/d Rheniformer 4 catalytic reforming unit at the company’s Richmond, Calif., plant on Nov. 27, Genscape reported. The unit, shut since Nov. 11, was previously reported offline from Oct. 24 through early November during a refinery-wide outage.
PBF Energy successfully restarted a hydrogen plant at its Martinez, Calif., refinery on the evening of Nov. 26. The unit was taken offline on Nov. 2, but was running below normal operational levels on Nov. 29.
Phillips 66 reportedly halting operation of a 50,000 barrel/d diesel hydrotreater at its Wilmington, Calif., facility on Nov. 29. A hydrogen plant at the facility was subsequently noted going offline on Dec. 1. Activity increases were observed from a 32,000 barrel/d crude distillation unit at the Phillips Rodeo, Calif., plant during the week. The unit, offline since Feb. 10, was observed operating “well below” normal activity levels on Nov. 30.
Indications for West Coast prills followed Vancouver higher to $205-$210/mt FOB.
Contracts for molten tons were noted in the $160-$170/lt FOB range for Q4, rising from $150-$155/lt FOB in the prior quarter.
China:
Increases in fertilizer production rates have combined with a reduction in sulfur imports to create a fundamentally imbalanced sulfur market in China, China News Service reported.
Sulfur import volumes were down approximately 20 percent year-over-year, leading state-owned refiners such as Sinopec to prioritize run rates in an effort to fill sulfur supply gaps. Sinopec on Nov. 25 was reported offering sulfur volumes from terminals at prices 130-140 yuan ($20.39-$21.95) below available import values.
Sources previously noted China’s fading importance in the international sulfur market. Traditionally a world-leading sulfur destination, a reduced import appetite – driven in part by steadily rising international market pricing throughout 2021 – has shifted importance to alternative destinations like North Africa, some market players argued.
Last-done imports at China were heard firming to at least a $265-$275/mt CFR range, up from $263-$265/mt CFR at last report. Increasing international values were broadly predicted to push China into the $280s/mt CFR in the next round of business.
Qatar:
Sources described Muntajat offers for December loading at $265/mt FOB Ras Laffan, a $39/mt increase from $226/mt FOB in November.