All posts by mickeybarb@charter.net

Sulfur

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

Tampa:

Contracts for molten sulfur delivered to Tampa were valued at $195/lt CFR for delivery in the third quarter, a $3/lt increase from $192/lt CFR in Q2.

Refinery utilization slipped downward for a third consecutive week, the U.S. Energy Information Administration (EIA) reported. Capacity usage was calculated at 91.4 percent for the week ending July 16, down from 91.8 percent in the previous report, but topping both the year-ago 77.9 percent and the 90.1 percent five-year average.

Daily crude inputs were also down, softening to an average 16.007 million barrels/d from the week-ago 16.093 million barrels/d rate.

U.S. Gulf:

A reported slowdown in cross-Gulf molten deliveries has led to a buildup of supply in the U.S. Gulf, sources noted. As a result, some producers were heard returning to prilling activities in greater numbers, potentially leading to the return of offshore sales out of the Gulf further down the road.

“Boats are not keeping up with supply,” said one source. “The U.S. Gulf is completely full,” another added.

U.S. Gulf Coast refining margins moved higher for the week ending July 9, according to Platts, lifting to $12.54/barrel from $11.98/barrel one week earlier.

ExxonMobil Corp. will deliver temporary workers to its Beaumont, Texas, refinery, currently engaged in a lockout of approximately 650 members of the United Steelworkers union (USW), Reuters reported. Exxon initiated the roughly 11-week lockout on May 1 in an effort to head off a potential strike. The 369,000 barrel/d facility has reportedly been running at approximately 60 percent of capacity during the lockout.

Genscape reported a 67,000 barrel/d hydrocracker and 70,000 barrel/d fluidic catalytic cracking unit (FCC) shutdown at the Shell refinery in Deer Park, Texas, on July 16. The FCC began to restart on July 17, while a ramp-up of activity from the hydrocracker culminated in a full restart of that unit on July 19. A separate 35,000 barrel/d vacuum distillation unit (VDU) has remained offline for a “prolonged period” of time.

Increased activity was observed from a 105,000 barrel/d crude distillation unit (CDU) and 70,000 barrel/d VDU at the Valero Corpus Christi East plant on July 16, although both units remained below operable levels. The CDU and VDU were taken offline on July 13. Valero restarted a 40,000 barrel/d CDU at its Corpus Christi West plant on July 18.

A 174,000 barrel/d CDU and 85,000 barrel/d VDU at the Citgo East Corpus Christi refinery were successfully restarted on July 21 after being offline for planned maintenance since July 8. The plant’s 69,000 barrel/d No. 2 FCC, offline since an unplanned outage on June 18, was projected to begin restarting over the July 21-27 period.

The restart of a 145,000 barrel/d FCC that suffered an unplanned July 9 outage at the Marathon Galveston Bay facility was completed on July 19.

Rising offshore freights were noted pressuring Gulf export price ideas, sources said, with most indicating netbacks in the $185-$195/mt FOB range, should a deal conclude today. Price ideas were previously noted in the $190-$195/mt FOB range.

Midwest:

Genscape reported the restart of a 104,000 barrel/d CDU at the Marathon refinery in Catlettsburg, Ky., on the morning of July 16. The unit was knocked offline by a malfunctioning heater one day earlier, Bloomberg reported.

A July 16 power outage knocked all monitored units offline at the Marathon plant in Robinson, Ill., including a 266,000 barrel/d CDU; a 68,000 barrel/d VDU; a 48,000 barrel/d FCC; a 38,000 barrel/d catalytic reforming unit; a 36,000 barrel/d catalytic reforming unit; and a 37,000 barrel/d hydrotreater. All of the affected units were successfully restarting over the July 18-20 period.

Midwest refining margins were noted at $15.72/barrel, up from the previous week’s $15.36/barrel, while operating at a combined 98.8 percent capacity, Platts reported. This reflects the region’s highest utilization rate since Q3 2019.

Brazil:

Last-done on the Brazil spot import market continued to be heard in the $221-$230/mt CFR range, unchanged from one week earlier. Sources described current sentiment edging toward the lower half of the range.

Contracts for delivery in the third quarter were reported at $221-$223/mt CFR, a rise from $213-$214/mt CFR in the second quarter.

Vancouver:

An investigation was underway into the cause of a July 18 sulfur terminal fire at the Vancouver area’s Port Moody. Vancouver market sources expressed cautious optimism that the event would leave minimal scarring on either the market or logistics.

Sources continued to note the recent Vancouver prill market at $175-$178/mt FOB, unchanged from one week earlier.

Alberta:

Activity levels from a 38,000 barrel/d hydrocracker and a 54,000 barrel/d hydrotreater returned to normal at Shell’s Scotford Upgrader on the evening of July 15, Genscape reported. Decreased activity had been observed on July 14.

Netbacks to Alberta sulfur producers were noted increasing to the $68-$108/mt FOB range due to the firming Tampa molten sulfur contract. Alberta pricing was previously reported at $65-$108/mt FOB.

West Coast:

West Coast prills continued to be heard at $175-$178/mt FOB. Third-quarter molten contracts were quoted in the $150-$155/lt FOB range, players reported, moving up from $140-$155/lt FOB in the prior quarter.

China:

Recent business at China continued to run in the $213-$216/mt CFR range, sources indicated, steady from week-ago levels.

ADNOC:

ADNOC prills were set at $175/mt FOB Ruwais for July loading, down $10/mt from $185/mt FOB in June.

Qatar:

Muntajat offered July sulfur vessels at $179/mt FOB Ras Laffan, players said, off $4/mt from the prior-month $183/mt FOB offer.

Kuwait:

Sources described Kuwait prill offers at $180/mt FOB, falling from $183/mt FOB in the previous period.

Sulfuric Acid

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

U.S. Gulf:

Sources generally reported the Gulf spot import sulacid market in the $210-$215/mt CFR range, firming from $190-$195/mt CFR one week earlier.

Gulf Coast:

While annual Gulf Coast sulfuric acid contracts remained unchanged in the $85-$110/st DEL range, sources expected any shorter-term agreements settling currently to press above the $200/st DEL level due to a mix of international pricing, ongoing supply uncertainty, and logistics constraints.

Midwest:

Tons pointed into the Midwest carried $85-$110/st DEL pricing for 2021 agreements, sources said.

West Coast:

Players quoted West Coast annual deals in the $100-$130/st DEL range, unchanged from one week earlier.

Brazil:

Brazil spot values were heard climbing to $225-$230/mt CFR, a $30/mt leap from $195-$200/mt CFR reported previously.

Norway:

Swedish miner Boliden on July 21 announced a €700 million ($827.9 million) production expansion at its Odda zinc smelter in Norway, Reuters reported, nearly doubling output to 350,000 mt/y from the current 200,000 mt/y. Work at the facility will include the construction of a new sulfuric acid plant. Boliden expects to complete the project by late 2024.

China:

Aluminum smelter activity fell for a second consecutive month in June, according to data released by China’s National Bureau of Statistics and reported by Reuters. The rate softened 0.01 percent for the month, falling to 3.29 million mt from 3.32 million mt in May.

Despite the decline, June 2021 production was up 9.3 percent year-over-year. Outputs for the January-June period were posted at a record 19.64 million mt, a 10.1 percent improvement on year-ago levels.

Ammonium Thiosulfate

Amthio, California, Eastern Cornbelt, Market Watch, Pacific N.W., Specialty, Western Canada, Western Cornbelt

Eastern Cornbelt:

Ammonium thiosulfate pricing was quoted at $400-$450/st FOB in the Eastern Cornbelt, with the upper end of the range reflecting the last offers out of Terre Haute, Ind. The low was reported for new season/fill pricing announced by IOC on July 22 FOB Ohio River terminals. IOC was also referenced at the $400/st level for rail-DEL ammonium thiosulfate in the Cornbelt.

Western Cornbelt:

IOC on July 22 announced new season/fill pricing for ammonium thiosulfate, effective immediately, with new postings reported at $325/st FOB Houston, Texas, and $385/st FOB Lubbock, Texas. Sources quoted limited ammonium thiosulfate tons in Iowa at the $430-$450/st FOB level at mid-month.

California:

Sources reported no current ammonium thiosulfate offers in California.

Pacific Northwest:

Ammonium thiosulfate remained in the $315-$335/st DEL range for the last reported offers in the Pacific Northwest.

Western Canada:

Ammonium thiosulfate pricing was steady at the C$505/mt DEL level for the last offers in Western Canada.

Crops/Weather

California, Crops/Weather, Eastern Cornbelt, Market Watch, Pacific N.W., Western Canada, Western Cornbelt

Eastern Cornbelt:

U.S. Drought Monitor

Much of the Eastern Cornbelt got a break from the recent spate of extremely wet weather. Central Indiana posted its fifth wettest July on record as of mid-month, with more than six inches of rain falling so far in July.

While many areas enjoyed comfortable temperatures in the upper-70s and 80s at midweek, another round of hot, humid weather was on tap for the coming weekend. Highs in central Illinois and Indiana were expected to climb into the low- to mid-90s, with highs in the 80s likely in northern Ohio.

Many areas were also expecting another round of rain over the weekend, with forecasts warning of up to an inch possible in some locations.

The plentiful summer moisture has been mostly beneficial for crops in the region. USDA placed 75 percent of Ohio’s corn in the good or excellent categories on July 18, along with 73 percent of Indiana’s crop and 65 percent of the acreage in Illinois. As for soybeans, good or excellent ratings were assigned to 60-69 percent of the regional crop on July 18.

Western Cornbelt:

Corn, Wheat, Soybean Index

High heat and humidity were reported across much of Iowa and Nebraska during the week. Temperatures in the 80s were common across central and eastern Iowa, with highs climbing into the low-90s in parts of western Iowa. News reports said a smoky haze from wildfires in the Western U.S. helped keep temperatures from climbing even higher in Iowa.

Missouri was also bracing for hot, humid weather over the coming weekend. Temperatures in the low- to mid-90s were expected across much of central Missouri, with high humidity driving heat indices into the triple digits.

Crop conditions remained favorable in Nebraska, where 78-81 percent of the corn and soybeans were rated as good or excellent as of July 18, along with 81 percent of the sorghum. USDA placed 66-68 percent of Iowa’s corn and soybeans in the good or excellent categories on July 18, compared with 56-62 percent in Missouri. Cotton and rice crops in Missouri were 67-69 percent good or excellent on that date.

California:

The July 22 U.S. Drought Monitor showed worsening conditions in California, with fully 86 percent of the state experiencing extreme drought and more than 33 percent in the exceptional drought category.

The tinder-dry conditions, coupled with intense heat, made matters worse for firefighters battling at least five major blazes across the state. Wildfires have so far consumed more than 273,000 acres in California this year, with the new Dixie fire in Butte and Plumas counties exploding to more than 85,000 acres since its ignition on July 14.

Crop conditions remained mostly favorably in California, although, as one source observed, “drought concerns are weighing heavy on the forward outlook.” USDA on July 18 rated 75-77 percent of the cotton acreage in Arizona and California as good or excellent, along with fully 90 percent of California’s rice crop.

Pacific Northwest:

Coastal areas of the Pacific Northwest enjoyed more seasonal temperatures in mid-July after the record-breaking heat that occurred in June and early July. Highs in Portland, Ore., topped out in the mid- to upper-70s at midweek, while light rains were reported in Seattle, Wash., during the week.

High heat continued in the Intermountain West, however, with Boise, Idaho, posting a high of 91 degrees on the morning of July 19. Highs across Montana were also in the low-90s for much of the week, with a wide band of extreme-to-exceptional drought now covering much of central and eastern Montana, as well as southern Idaho.

The entire state of Utah was also experiencing extreme-to-exceptional drought at mid-month, along with most of central Oregon and eastern Washington. Those conditions continued to fuel as many as 16 major wildfires across the region.

The dry conditions helped growers get a jump on the winter wheat harvest, with progress as of July 18 estimated at 39 percent complete in Oregon, 30 percent in Washington, 15 percent in Idaho, and 10 percent in Montana.

The drought has significantly damaged small grain crops across the region, however. USDA on July 18 rated fully 88 percent of Washington’s spring wheat as poor or very poor, along with 63 percent of the state’s barley. In Montana, 69 percent of the spring wheat and 50 percent of the barley were in the poor or very poor categories. Poor or very poor ratings were also assigned to 42 percent of Idaho’s spring wheat and 18 percent of the state’s barley crop.

Western Canada:

Dry, hot conditions continued to stress crops across much of Western Canada in mid-July. Temperatures across Manitoba once again rose to the low- to mid-30s C as the week began, with multiple locations postings daily records on July 18.

Crops in Saskatchewan were maturing well ahead of normal, with sources describing most crops as “short and thin” at mid-month. Fully 86 percent of Saskatchewan’s topsoil moisture was rated as short or very poor at mid-month.

The dry weather also fueled hundreds of wildfires in the region in mid-July. Firefighters in Saskatchewan were battling more than 100 separate fires, while nearly 300 wildfires were actively burning across western British Columbia at mid-month, prompting a July 20 state of emergency declaration from the provincial government.

“There is very bad smoke in a lot of areas,” commented one regional contact at midweek. “Drought conditions are bad and crops collectively are not looking strong.”