All posts by mickeybarb@charter.net

Sulfur

ADNOC - Abu Dhabi, Alberta, Brazil, China, Market Watch, Qatar, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

Fourth-quarter molten sulfur contracts were reported at $183/lt CFR, down $12/lt from the prior $195/lt CFR agreement. Some players suggested the lower Q4 Tampa pricing, contrasted with rising international values, could prove an impediment to demand fulfillment in the U.S. domestic market.

“This dynamic is going to make it quite difficult to balance out U.S. (supply and demand), with Canada directed offshore for better netbacks and U.S. Gulf sulfur improving netbacks offshore,” said one source.

U.S. refining utilization moved higher for the week ending Oct. 22, the Energy Information Administration (EIA) reported. Capacity reached 85.1 percent for the period, a 0.4-point rise from 84.7 percent in the prior report, and topping both the year-ago 74.6 percent and the 84.9 percent five-year average.

Daily crude inputs also ticked higher, averaging 15.048 million barrels/d compared to the week-ago 14.990 million barrels/d, a 58,000 barrel/d difference.

U.S. Gulf:

Genscape reported increasing activity from the 110,000 barrel/d fluidic catalytic cracking unit (FCC) at Shell’s Norco, La., refinery starting on Oct. 21, although the unit remained below operational levels. A gradual restart of the facility has been underway in October, following a full shutdown on Aug. 28 ahead of Hurricane Ida.

A number of units were restarted at the Valero facility in Port Arthur, Texas, on Oct. 21, including a 100,000 barrel/d coking unit, a 57,000 barrel/d catalytic reforming unit, and a 55,000 barrel/d diesel hydrotreater. The returning units completed a restart of the facility after an Oct. 17 unplanned shutdown, triggered by a partial loss of power and third-party utilities.

A shutdown of the 106,000 barrel/d heavy gas oil hydrotreater at Marathon’s Garyville, La., refinery was reported on Oct. 26.

Sulfur market players typically noted Gulf export price ideas steady in the mid-$190s/mt FOB, unchanged from one week earlier.

Brazil:

Last-done on the Brazil spot market was heard flat at $244-$246/mt CFR. Indications for the next round of business were noted closer to $260/mt CFR. Q4 contracts at Brazil were quoted at $234/mt CFR, increasing from $221-$223/mt CFR in the third quarter.

Vancouver:

Rising international values were noted lifting the Vancouver export market to the $185-$200/mt FOB range, up from $180-$192/mt FOB in the prior report.

Alberta:

Alberta sulfur netbacks firmed to $68-$130/mt FOB on higher Vancouver pricing, players reported.

West Coast:

Genscape reported a complete shutdown of the Chevron refinery in Richmond, Calif., on Oct. 24. All monitored units were noted going offline, including the 257,000 barrel/d crude section, a 90,000 barrel/d FCC, and both of the facility’s hydrocrackers.

Price ideas on solid sulfur loading from the West Coast were noted firming to a general $185-$200/mt FOB range for the period, up from $180-$192/mt FOB in the prior report. Molten sulfur contracts were noted at $160-$170/lt FOB for loading in the fourth quarter.

China:

Recent China spot imports were reported firming to $240-$255/mt CFR. The market was last called $240-$250/mt CFR.

ADNOC:

Abu Dhabi National Oil Co. (ADNOC) prills stood at $193/mt FOB Ruwais for October, $13/mt above the September price of $180/mt FOB.

Qatar:

The Muntajat posting for October was noted at $192/mt FOB Ras Laffan. Qatar sulfur was reported at $178/mt FOB in the prior period, a $14/mt difference.

Sulfuric Acid

Brazil, China, Gulf Coast, Market Watch, Midwest, Sulfuric Acid, U.S. Gulf, West Coast

U.S. Gulf:

Last-heard price ideas on sulfuric acid vessels imported to the U.S. Gulf were reported at $245-$250/mt CFR, although most agreed a deal concluded at that level would be all but impossible today, given current price expectations in the domestic U.S. markets.

Gulf Coast:

Tons delivered to the Gulf Coast were contracted in the $85-$110/st DEL range for 2021. With the bidding season on 2022 rail agreements now reportedly underway, sources expected to see a significant upward correction for the new year.

Midwest:

Midwest deals were quoted even with the Gulf Coast for 2021, at $85-$110/st DEL.

West Coast:

Contracts for West Coast deliveries were reported in the $100-$130/st DEL range for 2021.

Brazil:

Firming values continued to be noted in the Brazil import market. Recent vessel offers rising to $300/mt CFR were reportedly met with $280/mt CFR bids, a lift from $260-$265/mt CFR in the prior report.

An output reduction at the Paranapanema SA smelter was heard contributing to steep premiums in the inland markets. Sources said the facility, located in the Camaçari industrial district of Bahia state, is currently operating at 10-15 percent of its nameplate 450,000 mt/y sulacid capacity, leading to inland pricing in a reported R$10,000-R$20,000/mt range, or approximately $1,780-$3,560/mt.

China:

Shandong Fangyuan Nonferrous Metals Group, China’s largest private copper smelter, has restarted a 300,000 mt/y production line following a lengthy shutdown, Reuters reported. Fangyuan had been noted producing at approximately 400,000 mt/y of the company’s total 700,000 mt/y capacity since 2019 due to liquidity issues.

Ammonium Thiosulfate

Amthio, Eastern Cornbelt, Market Watch, South Central, Southern Plains, Specialty, Western Cornbelt

Eastern Cornbelt:

Ammonium thiosulfate pricing jumped to $450-$500/st FOB in the Eastern Cornbelt, with the high reported at Seneca, Ill., and the low reflecting IOC’s Oct. 26 posting FOB Ohio River terminals.

Western Cornbelt:

The ammonium thiosulfate market remained at a nominal $375-$400/st FOB in the Western Cornbelt, with the low reported at Waterloo, Iowa, for the last confirmed prepay business. New pricing from IOC on Oct. 26 included $450/st rail-DEL in the Cornbelt.

Southern Plains:

New ammonium thiosulfate pricing from IOC on Oct. 26 included $375/st FOB Houston and $435/st FOB Lubbock, Texas, up $25/st from the company’s Oct. 1 postings.

South Central:

The last ammonium thiosulfate offers were quoted at $435-$440/st FOB Memphis.

Crops/Weather

Crops/Weather, Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains

Eastern Cornbelt:

A round of thunderstorms on Oct. 24-25 dropped heavy rain in parts of Illinois, leading to some flooding around tributaries and in low-lying areas. More than 2.5 inches fell in the Chicago area, where peak winds of 48 mph contributed to power outages in some locations. More rainfall was reported in central Illinois at midweek.

Steady rains were also reported across central Indiana as the week progressed, pushing Indianapolis to its fourth-wettest October on record. Northern Ohio also experienced widespread rainfall late in the week, with more precipitation expected over the Halloween weekend.

Corn planting as of Oct. 24 had progressed to 78 percent complete in Illinois, 57 percent in Indiana, and 41 percent in Ohio. The soybean harvest was rated at 70 percent complete in Ohio and 63-68 percent in Indiana and Illinois. Winter wheat planting as of Oct. 24 was estimated at 75 percent complete in Ohio and 66-67 percent in Indiana and Illinois.

Western Cornbelt:

Frosty temperatures across parts of Iowa and Nebraska over the previous weekend were followed by widespread rainfall during the final week of October, with reports of some areas catching 2-4 inches of precipitation by midweek.

Missouri was also in the crosshairs, with strong thunderstorms reported across western and central Missouri on Oct. 24 that produced several inches of rainfall as well as damaging winds and tornadoes.

The wet conditions slowed harvest activities during the week, but progress continued to track ahead of the average pace for most crops. USDA reported that Missouri growers had 81 percent of the corn in the bin by Oct. 24, compared with 60 percent in Iowa and Nebraska. The soybean harvest had progressed by that date to 88 percent complete in Nebraska, 83 percent in Iowa, and 49 percent in Missouri.

Missouri growers also had 85 percent of the rice and 53 percent of the cotton harvested by Oct. 24, with Nebraska’s sorghum harvest reported at 72 percent complete by that date.

Southern Plains:

Severe weather was reported throughout the Southern Plains during the week, producing strong winds and tornadoes, large hail, and heavy rain.

The National Weather Service confirmed that seven tornadoes hit northeastern Kansas and northwestern Missouri late on Oct. 24, while remnants of the “bomb cyclone” that slammed the West Coast brought needed moisture and gusty winds to Colorado on Oct. 26.

A band of strong thunderstorms also moved through Oklahoma on Oct. 26-27, prompting tornado warnings in western Oklahoma and for multiple counties in the Oklahoma City metro. A line of fast-moving thunderstorms in central Texas at midweek produced 60 mph winds and half-inch hail in some locations, causing widespread power outages.

Sources reported steady progress on the harvest of corn, soybeans, cotton, sorghum, and sunflowers in the region. Kansas growers had 57 percent of the soybeans in the bin by Oct. 24, while the corn harvest had progressed to 84 percent in Kansas, 58 percent in Colorado, and 94 percent in Texas. The sunflower harvest was estimated at 42 percent in Colorado and 53 percent in Kansas by that date.

While Texas growers had fully 40 percent of the cotton picked by Oct. 24, progress was lagging at 18 percent in Oklahoma and only 5 percent in Kansas. The sorghum harvest, meanwhile, had progressed to 95 percent complete in Texas, 61 percent in Colorado and Kansas, and 54 percent in Oklahoma.

Growers were also pecking away at winter wheat planting, which was reported at 97 percent complete in Colorado, 84 percent in Kansas, and 72-73 percent in Oklahoma and Texas.

South Central:

Strong winds battered parts of northern Arkansas over the previous weekend, with tornado watches in effect for some areas on Oct. 24. Thunderstorms and gusty winds also moved through Middle Tennessee early in the week. A frost advisory was in effect for central Kentucky at midweek, with lows dropping to the mid-30s in some locations.

The region’s worst weather hit southern Louisiana at midweek, with reports of severe thunderstorms, damaging winds, and a number of reported tornadoes leaving nearly 2,500 residents and businesses without power on Oct. 27. A tornado watch was also posted for southern Mississippi at midweek as a line of powerful thunderstorms moved through the state.

The cotton harvest was lagging in the region, with progress as of Oct. 24 estimated at 73 percent complete in Louisiana, 58 percent in Arkansas, 41 percent in Mississippi, and just 25 percent in Tennessee. Fully 83 percent of the Arkansas cotton crop was rated as good or excellent on that date, compared with 68 percent in Tennessee, 62 percent in Mississippi, and 51 percent in Louisiana.

The regional rice harvest had progressed to 94-100 percent complete by Oct. 24. The corn harvest was also well-advanced at 78-86 percent complete in Kentucky and Tennessee, while the soybean harvest was estimated at 78-87 percent in Louisiana and Mississippi, 70 percent in Arkansas, and 44-46 percent in Tennessee and Kentucky.

Southeast:

Stormy weather was the theme for the Southeast as the week progressed. The powerful nor’easter that blasted the Mid-Atlantic and Northeast regions during the week prompted warnings of coastal flooding in Virginia’s Alexandria and Arlington counties on Oct. 28-29.

Some parts of North Carolina were hit with strong thunderstorms early in the week, which followed an earlier band of storms that produced large hail in some areas over the previous weekend. More stormy weather was expected in eastern areas of the state on Oct. 28.

Georgia was also bracing for wet, windy weather as the week progressed, with many areas reporting 1-2 inches of rainfall by Oct. 28. Tornado watches were in effect for southern Alabama at midweek, with rounds of showers and gusty winds expected across central Alabama later in the week. Strong storms also produced heavy rainfall and gusty winds in central and southern Florida during the week.

The regional harvest slowed in late October, with progress lagging on cotton and peanuts. Just 14 percent of South Carolina’s cotton was picked by Oct. 24, compared with 22-27 percent in the rest of the region. USDA assigned good or excellent ratings to 74-84 percent of the cotton acreage in Virginia, South Carolina, and Alabama, and 59-68 percent in Georgia and North Carolina.

The peanut harvest was 69 percent complete in Florida and Virginia, 53-55 percent in Georgia and North Carolina, and 45-47 percent in South Carolina and Alabama. Fully 85-92 percent of the peanut crop in Virginia and South Carolina was rated as good or excellent in late October, along with 77-79 percent of the acreage in Alabama and North Carolina, and 64-70 percent in Florida and Georgia.

Transportation

Arkansas River, Atlantic, Illinois River, Market Watch, Mississippi RIver, Ohio River, Transportation, U.S. Gulf

U.S. Gulf and Atlantic: A West Canal closure at Miles 21-33, responsible for large-scale detours through the Port Allen Route, was projected to conclude as early as Oct. 29. The shutdown, in place since late August due to extensive shoaling and debris buildup during Hurricane Ida, was believed to cause delays of 1-2 days between NOLA and Houston.

Emergency Bayou Sorrel Lock repairs were expected to trigger intermittent shutdowns through an estimated Nov. 1. Work at the site was scheduled daily between 7:00 a.m. and 6:00 p.m. Delays of up to 48 hours were reported for the week.

Travel remained unavailable at Bayou Lafourche, between Lockport and the West Canal, due to ongoing hurricane cleanup efforts.

Bayou Chene was shut to overnight movements due to floodgate construction, closing the channel between 7:00 p.m. and 7:00 a.m. nightly. Additional restrictions also remained in place, including tow lengths capped at 600 feet, while tows above 54 feet in width were required to use an assist vessel. Waits were heard in a general 6-12 hour range for the week.

Drafts were limited to 10 feet at Miles 113-115 on the Atchafalaya River in the Morgan City area, due to shoaling and channel degradation. Lengths were limited to 600 feet, while tows longer than 400 feet were advised to use an assist vessel. Towing widths were noted at a maximum 70 feet. Vessels were advised to avoid the restrictions by traveling through the Port Allen Route instead.

With the Port Allen Route continuing to act as the primary alternative route for the West Canal and associated waterways, wait times were quoted up to 52 hours for the week, edging toward the bottom end of the previous week’s 50-75 hour range.

Tows passing Algiers Lock without an assist vessels were generally limited to four standard barges or two 30,000 mt tankers. Larger configurations remained available when traveling with assistance.

Replacement work in progress at the Belle Chasse Bridge was expected to prompt sporadic shutdowns of up to 12 hours at a time through late 2022. The structure is located at Mile 3 in the West Canal.

Bayou Boeuf Lock travel was noted available on weekdays from 7:00 p.m. to 7:00 a.m., with 24-hour access possible on Saturday and Sunday. Minimal delays were reported for the week.

Industrial Lock delays were generally noted around six hours, with intermittent delays spiking to the 13-24 hour range.

Mississippi River:

Rock-laying efforts that kicked off on Oct. 20 at Mile 671 on the lower Mississippi River were expected to run through Oct. 29-31, blocking southbound transit between 7:00 a.m. and 6:00 p.m.

Channel clearance efforts by the Dredge Hurley continued to be reported at Mile 293, with minimal delays expected.

Barges loading from NOLA and destined for upper Mississippi River locations at Iowa or below were expected to begin final releases in second-half October. Material traveling above Iowa was generally heard carrying a first-half October cutoff, although tons loading from upriver locations were expected to continue releasing into November.

Upper river seasonal closures were scheduled to begin with Locks 5A, 8, and 10 on Nov. 28, followed by Locks 4, 5, and 7 which were due to shut on Dec. 6. Locks 15 and 24 were slated to close for the winter on Jan. 1, with Lock 24 tentatively returning to service on Jan. 31.

Lock 15 is due to come online on March 3, while Locks 5 and 7 are scheduled to return on March 11. Locks 5A, 8, and 10 are due to open six days later on March 17, followed by Lock 4 on March 21.

Illinois River:

Elevated water levels and fast flows restricted barge counts on the Illinois Waterway during the week. Starved Rock Lock was heard temporarily closing to navigation due to the conditions.

Ohio River:

The primary chamber at Cannelton Lock was projected to be offline through Nov. 19 due to repairs that began on June 21, leaving boats to pass the site through the secondary chamber. The secondary chamber was also due to shut intermittently for maintenance on Nov. 1-19, potentially setting up complete navigation stoppages at the site.

Planned work on the Montgomery Lock main chamber, previously scheduled to begin on Oct. 18, was delayed until Oct. 29. The project remained on track to conclude on Dec. 17, with detours through the secondary chamber necessary for the duration. Lengthy delays are expected.

The Hannibal Lock main chamber was scheduled to reopen on Oct. 29 after planned repairs. Detours were reported through the site’s 600-foot secondary chamber while work was underway.

The Willow Island Lock primary chamber shutdown was scheduled to remain in effect through Oct. 31, necessitating movements through the auxiliary chamber. The auxiliary chamber at Markland Lock was tentatively scheduled to return to service on Oct. 29, ending a period of main chamber-only navigation stretching back to first-half 2020.

The Tennessee River’s Wilson Lock continued to operate on a staggered one-way locking pattern. Operators were noted passing southbound tows during daylight hours, while northbound movements were available overnight. As a result, intermittent wait times were reported as high as 23 hours for the week, rising from 20 hours in the prior report.

Kentucky Lock is scheduled to completely shut to navigation from Nov. 1 through Dec. 10, with a temporary reopening planned for Nov. 25-28 to pass assembled vessels. Barkley Lock was suggested as an alternate route during the shutdown. Kentucky Lock delays were quoted up to 27 hours for the week.

The Allegheny River’s Lock 6 will remain shut to navigation indefinitely due to miter gate damage.

Arkansas River:

Emmett Sanders Lock reportedly experienced intermittent travel shutdowns between 7:00 a.m. and 6:00 p.m., on Oct. 26-28.