Tampa:
Negotiations for the second-quarter contract price of molten sulfur delivered to Tampa moved into full swing. Players noted talks for updated agreements focused in a $100-$110/lt CFR range – off $20-$30/lt from the first quarter’s $130/lt CFR contract – with some suggesting a final price at $105/lt CFR should buyers and sellers opt to meet in the middle.
“Significant” refinery turnarounds in the Midwest and East Coast regions anticipated to run through May threatened to impact near-term supply, some players suggested, while persistent softening reported from a number of international markets in recent weeks was said to weigh on markets such as the US Gulf, a traditional indicator for Tampa.
Operable refining capacity in the US moved lower, according to Energy Information Administration (EIA) data. Capacity utilization for the week ending April 7 was noted at 89.3%, a 0.3 percentage point decrease from 89.6% in the prior report. The rate trailed the year-ago 90.0% while beating the 84.2% five-year average.
Crude inputs also pressed lower. The EIA noted refineries processing an average 15.585 million barrels/d through the period, off 30,000 barrels/d from the week-ago 15.615 million barrels/d.
US Imports:
Sulfur imports fell 15.0% for July-February, to 1.87 million st from 2.20 million st in the prior-year period. Imports moved 19.2% higher in February, however, to 257,066 st from the year-ago 215,628 st.
US Exports:
Exports were nearly flat in February, at 196,274 st compared to 196,340 st in February 2022. July-February exports firmed 36.6%, however, to 1.47 million st from the year-ago 1.07 million st.
US Gulf:
Last-done sulfur pricing out of the US Gulf continued to be noted in a $125-$130/mt FOB range, steady from one week earlier. Based on available offshore netbacks, actual values were indicated closer to $100-$115/mt FOB, sources said, although nothing was believed to have transacted at that level.
Brazil:
Sources noted recent Brazil spot pricing softening to a general $129-$145/mt CFR range, off from $134-$150/mt CFR reported previously.
Contracts for the second quarter were reported settling in a general $135-$140/mt CFR range, below $172-$186/mt CFR in the prior period.
Vancouver:
Vancouver prices was heard in a $100-$110/mt FOB range for the week, falling $5/mt from $105-$115/mt FOB at last check. Rising freight rates could pressure netbacks below the $100/mt FOB mark in the near-term, some speculated.
Alberta:
Based on both molten sulfur cargoes contracted into the US market and solid tons sold through the Vancouver export market, Alberta sulfur netbacks continued to be indicated in a $15-$60/mt range, unmoved from the prior report.
West Coast:
West Coast prills were indicated on par with Vancouver in a $100-$110/mt FOB range, down from $105-$115/mt FOB at last check.
Molten sulfur contracts for loading in the second quarter were reported at $98-$106/lt FOB, falling from $125-$135/lt FOB in the prior period.
China:
China spot sulfur import pricing softened to a $120-$125/mt CFR range, sources said. The market was previously noted at $125-$135/mt CFR.
ADNOC:
Prilled sulfur produced by the Abu Dhabi National Oil Co. (ADNOC) was heard at $115/mt FOB Ruwais for loading in April, falling $19/mt from $134/mt offered in March.
Qatar:
April Muntajat solid sulfur cargoes were posted at $110/mt FOB Ras Laffan, sources said. Offers were reported at $133/mt FOB in March, a $23/mt FOB difference.