Tampa:
Sources reported first-quarter talks for Tampa molten sulfur contracts as “just getting started” during the week. Players voiced speculation of a $30-$45/lt increase from the fourth quarter’s $90/lt CFR contract price, although the possibility of continued softening in key international markets such as Brazil and China could delay an agreement, some said.
US refinery utilization moved up for the week ending Jan. 6, the Energy Information Administration (EIA) reported. Refineries operated at a combined 84.1% of capacity for the period, up 4.4 percentage points from the week-ago 79.6%. The current rate trailed both the year-ago 89.9% and five-year average of 88.5%.
Daily crude inputs also moved higher, lifting to an average 14.651 million barrels/d, up 831,000 barrels/d from the prior-week 13.820 million barrels/d.
US Gulf:
Last-heard sulfur pricing out of the US Gulf softened to a $148-$153/mt FOB range, falling from $155-$165/mt FOB in the prior report.
US Imports:
Imports of sulfur fell 36.5% for November, to 232,061 st from the year-ago 365,285 st. July-November totals stood at 1.16 million st, off 18.1% from 1.42 million st.
US Exports:
Sulfur exports firmed 51.5% in July-November, rising to 934,404 st from 616,740 st. November totals were reported at 145,355 st, off 16.8% from 174,689 st logged one year earlier.
Brazil:
Last-done at Brazil was reported at $172-$176/mt CFR, slightly below $173-$176/mt CFR noted in the prior week. Players reported talks for the next round of business in the $160s/mt CFR.
The vast majority of business concluded to-date in 2023 at Brazil has been for spot tonnage, sources said, leaving the status of first-quarter contracts unclear. Fourth-quarter contracts were pegged in a $119-$138/mt CFR range.
Vancouver:
Nothing new was reported on the Vancouver export market, leaving last-heard pricing in a $150-$155/mt FOB range. Lower values reported at China in recent weeks were expected to drag on Vancouver in the next round of business.
Alberta:
Alberta netbacks continued to be indicated at a wide (-)$25-$85/mt FOB, unchanged from the prior report. Netbacks on molten material contracted into the US market was responsible for the low of the range, while prilled tons selling on the Vancouver export market set the highs.
West Coast:
West Coast prills were indicated even with Vancouver at $150-$155/mt FOB, unmoved from the prior report.
First-quarter West Coast molten sulfur contracts were reported to settle in a $125-$135/lt FOB range, increasing from $75-$79/lt FOB in the fourth quarter.
China:
Last-done at China was noted in a $155-$165/mt CFR range, off from $170-$175/mt CFR reported one week earlier.
ADNOC:
Abu Dhabi National Oil Co. solid sulfur offers were noted at $160/mt FOB Ruwais for January, down $20/mt from $180/mt FOB in December.
Qatar:
January offers from Muntajat stood at $155/mt FOB Ras Laffan, sources said. Tons were offered at $185/mt FOB in December, a $30/mt FOB difference.
Kuwait:
Cargoes originating from Kuwait were reportedly posted at $154/mt FOB, a $29/mt decrease from $183/mt FOB in December.