Tampa:
The third-quarter contract price of Tampa molten sulfur was settled at $352/lt CFR, sources said, down $129/lt from $481/lt CFR in the prior period.
Refinery utilization pressed lower for a third consecutive reporting period, according to data released by the U.S. Energy Information Administration (EIA). Capacity was noted at 93.7% for the week ending July 15, a 1.2 point decline from 94.9% in the previous report, but above both the year-ago 91.4% and the 90.3% five-year average.
Daily crude inputs also moved lower, registering an average 16.319 million barrels/d, 321,000 barrels/d below the week-ago 16.640 million barrels/d rate.
U.S. Gulf:
Falling international price sentiment had not yet moved the needle on tons loading from the U.S. Gulf, players said on July 21, although it was only a matter of time.
With new offers at Brazil reportedly pressing into the $200s/mt CFR, Gulf netbacks in the next round of business could land in the $200s/mt FOB or lower, some warned. For now, last-done continued to be heard at a general $350-$375/mt FOB.
Brazil:
Sulfur market buyers and sellers described international price sentiment as perched at the edge of a cliff.
Despite recent confirmed numbers continuing to be noted in the low-$400s/mt CFR, new business was reportedly being discussed significantly lower in the $200-$250/mt CFR range. Although nothing was concluded on July 21, players were braced for the next round of business to shift considerably south of last-done levels.
A small volume of third-quarter contract business reportedly fell in the $418-$425/mt CFR range. Some buyers were noted to refrain from longer-term commitments in expectation of lower values ahead. Contracts were noted at $480-$485/mt CFR in the second quarter.
Vancouver:
No new solid sulfur business was heard concluding out of Vancouver during the week, leaving last-done in the $340-$350/mt FOB range. With recent values heard plunging into the mid-$200s/mt CFR or possibly lower at China, next-done at Vancouver is expected to move down.
Alberta:
Alberta sulfur netbacks were indicated in the $237-$282/mt FOB range and included both molten tons contracted into the U.S. market and prilled material selling through the Vancouver export market.
West Coast:
Recent West Coast solid sulfur indications were unmoved at $340-$350/mt FOB. Falling values were anticipated in the next round of business. Third-quarter molten sulfur agreements were noted at $370-$385/lt FOB, below the $375-$390/lt FOB range reported for the prior period.
China:
Six-month average crude throughput at refineries in China fell for the first time in more than a decade in first-half 2022, according to China’s National Bureau of Statistics (NBS), as reported by Reuters.
Daily January-June throughput averaged 13.4 million barrel/s day, down 6% from first-half 2021. June’s 13.37 million barrel/d average represented a 5% increase from 12.7 million barrels/d in May, but was off 10% from the June 2021 rate of 14.8 million barrels/d, an all-time monthly high for the country.
Independent teapot refineries were noted raising run rates late in May in response to easing Covid-related lockdowns. Deep production cuts had been noted in the February-April period. The conclusion of planned turnarounds at two of state-run oil company Sinopec’s refining facilities also contributed to rising outputs.
Players described new sulfur cargoes imported into China sinking to at least the $250-$280/mt CFR range, with further softening likely in the short term. Rumored trading below the $200/mt CFR mark went unconfirmed on July 21. The market was previously reported in the $370-$385/mt CFR range.
ADNOC:
Abu Dhabi National Oil Co. prills were offered at $428/mt FOB Ruwais for loading in July, falling $52/mt from June’s $480/mt FOB offer.
Qatar:
Muntajat sulfur offers for July were heard at $428/mt FOB Ras Laffan, off $62/mt from $490/mt FOB in June. Bidding for the next round of business was rumored to fall substantially below July levels.