Tampa:
Sources reported no significant negotiations for the second-quarter Tampa molten sulfur contract underway during the week.
Expectations for the contract’s ultimate landing price continued to track in a $110-$120/lt CFR range, off $10-$20/lt from the first quarter’s $130/lt CFR agreement, although persistent softening reported from a number of international markets in recent weeks could push that number lower, some speculated.
Refinery utilization moved lower for the week, the US Energy Information Administration (EIA) reported. Operable US refining capacity slipped to 89.6% for the period ending March 31, a 0.7 percentage point decrease from 90.3% reported previously. The rate fell behind the year-ago 92.5%, but topped the five-year average of 85.6%.
Crude inputs were also lower, the EIA noted, slipping to an average 15.615 million barrels/d from 15.813 million barrels/d reported previously, a 198,000 barrel/d difference.
US Gulf:
Last-done out of the US Gulf continued to be called $125-$130/mt FOB. Recent declines in the Brazil market suggested values closer to the $110s/mt FOB should a deal conclude currently, sources said. A lack of liquidity has reportedly prevented the market from testing the lower levels to-date.
Brazil:
Recent business at Brazil was noted in a $134-$150/mt CFR range, off from $135-$160/mt CFR reported last.
Contract values for the first quarter were understood at $172-$186/mt CFR. Contracts are likely to soften in the second quarter.
Vancouver:
Last-done out of Vancouver continued to be heard in a $105-$115/mt FOB range. Values for new business were expected to trend toward the lower end of the range, sources said.
Alberta:
Indications on Albert sulfur netbacks were steady at $15-$60/mt, unmoved from the prior report. The range included both molten tons contracted into the US market and prilled material selling through the Vancouver export market.
West Coast:
West Coast prills were indicated in a $105-$115/mt FOB range, steady from the prior report.
Sources reported softening in the West Coast molten sulfur market. Contracts for the second quarter were reported in a $98-$106/lt FOB range, off from $125-$135/lt FOB in the first quarter.
China:
New pricing at China tracked in a $125-$135/mt CFR range, sources said, falling from $130-$140/mt CFR in the prior report.