Tampa:
With international sulfur pricing continuing to soften, Tampa sulfur market buyers were reportedly in no hurry to settle third-quarter contracts given the current conditions.
Citing lower numbers out of Brazil and the U.S. Gulf, most players speculated on a likely $100/lt decline from the second-quarter $481/lt CFR contract. An additional $15/mt decline rumored out of the Gulf could drag Tampa $120/lt lower if confirmed, others argued. Buyers and sellers were said to remain far apart in negotiations on July 7.
U.S. refineries operated at 94.5% of total capacity for the week ending July 1, according to the Energy Information Administration (EIA), declining 0.5 points from the prior week’s 95.0%. The current-week rate topped both the year-ago 92.2% and the 91.1% five-year average.
The EIA noted crude inputs softening to an average 16.438 million barrels/d through the period, down 228,000 barrels/d from the previous 16.666 million barrel/d average.
U.S. Gulf:
Genscape noted multiple unit shutdowns at the TotalEnergies refinery in Port Arthur, Texas, on July 1, reportedly due to a loss of steam. Among the units offline were the plant’s 80,000 barrel/d ACU-2 crude distillation unit (CDU), a 52,000 barrel/d vacuum distillation unit (VDU), a 40,000 barrel/d catalytic reformer, and a 46,000 barrel/d hydrotreater. The catalytic reformer and hydrotreater were restarted on July 6, although the other units remained offline.
Motiva shut a 105,000 barrel/d HCU-2 hydrocracker at its Port Arthur facility on July 4. Genscape reported the unit restarting on July 6.
Recent bids and offers on sulfur exported from the U.S. Gulf were reported dropping to at least $370-$375/mt FOB during the week, below the $420/mt FOB level noted previously. Offers rumored as low as $350/mt FOB could not be confirmed on July 7, although players generally believed the numbers to be plausible.
Brazil:
A recent CMOC tender reportedly attracted offers in the $419-$425/mt CFR range. CMOC was claimed to negotiate business down further to $418/mt CFR, although concluded trading at that level could not be confirmed on July 7.
Including other recent trading reported at $435/mt CFR, the recent Brazil spot market price was quoted in the $419-$435/mt CFR range, falling from $435-$460/mt CFR in the prior report.
With no updated contracts concluding as of July 7, Brazil contract levels remained at the second-quarter $480-$485/mt CFR for the week.
Vancouver:
Based on recent values at China, the week’s Vancouver export sulfur price was pegged in the $370-$375/mt FOB range, down from $410-$425/mt FOB at last report.
Alberta:
Alberta prilled and molten sulfur netbacks combined into a wide $300-$411/mt FOB range for the week. Prilled tons exported through Vancouver were noted at the lower end of the range, while molten material contracted into the U.S. market filled in the middle and high.
Falling contract prices expected in the Tampa molten sulfur market were expected to reduce Alberta pricing in the short term.
West Coast:
Solid sulfur loading from the West Coast was indicated in the $370-$375/mt FOB range for the week, softening from $370-$425/mt FOB reported previously.
Third-quarter molten contracts for tons loaded to trucks from West Coast locations were quoted in the $370-$385/lt FOB range, down from $375-$390/lt FOB in the prior period.
China:
Recent import prill pricing at China softened to at least $420/mt CFR during the week, traders said, a decline from $440-$455/mt CFR one week earlier. Trading rumored down to $385/mt CFR went unconfirmed on July 7, although business was generally expected to push toward a similar level in the next round of business.
ADNOC:
The Abu Dhabi National Oil Co. reportedly posted July solid sulfur offers at $428/mt FOB Ruwais, a $52/mt decline from $480/mt FOB in June. Players reported that some large buyers were able to further negotiate pricing into the low-$420s/mt FOB, although concluded pricing remained unconfirmed on July 7.
Qatar:
Muntajat posted pricing for July stood at $428/mt FOB Ras Laffan, players said, $62/mt below June’s $490/mt FOB offer. Like ADNOC, some buyers were reportedly able to conclude purchases below posted levels, in the low-$420s/mt FOB.