Tampa:

Contending with weeks of reduced outputs stemming from the ongoing COVID-19 pandemic and cold-weather-related refinery shutdowns in February, sources described demand shifting toward fulfillment through the domestic spot sulfur market.

Turnarounds rumored for April and May at a number of major refiners in Alberta would further tighten U.S. supply, sources warned. “The U.S. has been looking to Canada to balance the market, but it will be tough sledding the next couple of months,” said one source.

Reduced domestic supply, combined with soaring international market values, was expected to pressure the Tampa molten market higher in the second quarter. First-quarter contracts were valued at $96/lt CFR.

U.S. refining capacity continued to recover from the mid-February polar vortex, the Energy Information Administration (EIA) reported. Nationwide utilization was noted at 76.1 percent for the week ending March 12, rising 7.1 percentage points from the previous week’s 69.0 percent, but below both last year’s 86.4 percent and the 85.0 percent five-year average.

Crude inputs were reported rising above the 13 million barrel/d mark, to an average 13.433 million barrels/d for the week, a 1.123 million barrel/d increase from the prior week’s 12.310 million barrels/d rate.

U.S. Gulf:

Texas refineries impacted by the February polar vortex continued to inch toward normality, Bloomberg reported, with 17 of the state’s 18 refineries that shut down during the freeze reporting a restart of some or all units. Texas boasts a total of 30 refineries.

Normal production levels were reported at the 131,000 barrel/d Marathon refinery in El Paso; the 607,000 barrel/d Motiva facility in Port Arthur; ExxonMobil Corp.’s 369,000 barrel/d refinery in Beaumont; and the 73,000 barrel/d Delek Big Springs plant.

Normal levels were also reported at Valero’s 335,000 barrel/d facility in Port Arthur, the company’s 290,000 barrel/d Corpus Christi unit, the 205,000 barrel/d plant in Houston, and the 225,000 barrel/d refinery in Texas City.

Refineries reported in the process of restarting during the week included Valero’s Three Rivers (89,000 barrels/d) and McKee (195,000 barrels/d) plants; the 560,500 barrel/d Exxon Baytown facility; Flint Hills’ 338,500 barrel/d plant in Corpus Christi; a 167,500 barrel/d Corpus Christi refinery owned by Citgo; Marathon’s 585,000 barrel/d Galveston Bay unit; the 263,800 barrel/d LyondellBasell Ind. facility at Houston; and the 225,500 barrel/d Total plant at Port Arthur. Genscape reported the Total facility returning to full operation on March 18.

Two remaining Texas units that shut due to the cold – the Shell refinery at Deer Park and Chevron’s Pasadena facility – were noted initiating early restart procedures during the week.

Genscape on March 16 reported “low levels of increased activity” at several Shell Deer Park units, including a 270,000 barrel/d crude distillation unit (CDU), an 115,000 barrel/d vacuum distillation unit (VDU), and a 92,000 barrel/d coking unit, followed by a successful restart of the CDU and VDU relayed on March 18.

Initial restart efforts at the Chevron plant reported on March 17 included activity ramp-ups at a 116,000 barrel/d CDU, a 56,000 barrel/d fluidic catalytic cracking unit, and a 35,000 barrel/d hydrotreater. Activity at all monitored units remained below operation levels on March 17, however.

Spiking freight values worldwide were seen eroding netback potential on cargoes loading from the U.S. Gulf. Based on the climbing costs, sources reported Gulf price ideas in the $175-$180/mt FOB range, falling from $180/mt FOB previously.

Brazil:

Sources reported the latest Brazil import pricing softening to $216/mt CFR, a dip from $218/mt CFR in the prior report.

Vancouver:

Last-done prills loading from Vancouver continued to be heard in the $175-$183/mt FOB range, steady from one week earlier.

Alberta:

Players noted Alberta netbacks at (-)$31-$113/mt FOB based both on Vancouver prill sales at the top of the range and molten tons contracted into the U.S. at the low. The range was unchanged from the previous week.

West Coast:

West Coast prills mirrored Vancouver at $175-$183/mt FOB, unchanged from one week earlier. Molten tons loading from the West Coast were valued at $70-$77/lt FOB for loading in the first quarter.

China:

Sources noted China import price ideas unchanged at $200-$210/mt CFR.

ADNOC:

Offers for Abu Dhabi National Oil Co. (ADNOC) prills were reported at $183/mt FOB Ruwais for March loading, an increase of $55/mt from $128/mt FOB in the prior month.

Qatar:

Muntajat offers for March were heard even with ADNOC at $183/mt FOB Ras Laffan. The market was reported at $125/mt FOB in February, a $58/mt difference.