Tampa: The sulfur supply system remained in balance last week, despite high capacity rates at refineries.
The U.S. Department of Energy said last week that the weekly operating capacity rate for refineries increased 1.9 percent, from 86.4 percent to 88.3 percent. Despite the higher rate, the amount of sulfur extracted will not provide any significant increase in the amount of sulfur produced because of an increase in the use of sweet crude oil.
No transportation issues were found last week, but the potential of a Canadian Pacific rail strike still loomed. The threat may be minimal, however, because the government will likely make moves to keep the rail line operating if an agreement is not reached.
Vancouver: Spot prices have moved into the $190-$195/mt FOB range, as China was paying about $220/mt DEL.
Emersul will begin a project remelting Syncrude, a sulfur block accumulated during the past couple of decades. When it cranks up in July, it will remelt about 150 mt/d and increase to an ultimate 800-1,000 mt/d. It was not clear what impact the output of the project will have on the market, but it will probably not drive prices up.
Meanwhile, the deadline for a possible strike by Canadian Pacific rail workers was approaching last week, and no resolution had been reached. The union had asked the government not to get involved, although the company has sought intervention. The union claimed the company was not negotiating in good faith. The deadline was May 23.
West Coast: Prices for prill sulfur on the West Coast were tracking the Vancouver market.
U.S. Imports: March imports were off 30 percent, to 195,975 st from the year-ago 280,689 st. For July-March, however, they were down only 3 percent, to 1.76 million st from 1.82 million st.