All Posts from October 30, 2006

Market Watch

AMMONIA

U.S. Gulf/Tampa: Tampa numbers for the first half of November rolled over from October at the $310/mt DEL mark last week, according to sources. In the meantime, Mosaic reported that the Faustina ammonia plant would continue to be down for six to 12 weeks for repairs and that the company had opted to cut back on phosphate production rather than source ammonia (see page 1).

Natural gas prices were of concern at midweek as Henry Hub prices ran up, but settled down $.19/mmBtu to close at $7.497/mmBtu on Thursday.

There was some good news and bad news regarding one gas forecast for the coming winter season. The good news, according to a forecast by WSI Corp., was that November should be warmer than normal in the pivotal Northeast, as well as in the North Central states of Iowa, Wisconsin, and Illinois. Energy Security Analysis Inc. (ESAI) noted that this warmer weather may extend the injection season and put additional pressure on physical gas prices as there is little room for excess gas due to the extremely full storage, expected at 3.5-3.6 Tcf by early November.

While temperatures are expected to be cooler-than-normal in the Northeast in December and January, they are expected to be warmer-than-normal in all other regions. ESAI is bearish on gas prices, saying cooler weather in the Northeast will not be enough to offset moderate demand in all other regions.

Eastern Cornbelt: Sources reported some fall movement of ammonia to the field in southern Illinois, but wet conditions stalled activity in most other locations. The regional ammonia market was tagged at $345-$355/st FOB last week, up just slightly from last report, with one supplier offering forward pricing for November at $360-$370/st FOB regional terminals, depending on location.

Western Cornbelt: Some areas of the region were starting to move ammonia in late October, but activity was still slow and spotty due to wet field conditions, continued harvest activity, or warm soil temperatures. Ammonia pricing remained at $330-$345/st FOB most regional terminals.

Northern Plains: Ammonia pricing covered a wide range in the region as the fall application season got underway. In North Dakota, sources quoted delivered ammonia at $355-$400/st, with the low out of Leal, N.D., and the upper end reflecting new postings from Dakota Gasification. Fueled by stronger natural gas pricing, ammonia postings from Dakota Gasification moved from $360/st to $385/st DEL on Oct. 19, followed by a jump to $400/st DEL on Oct. 23.

Great Lakes: The anhydrous ammonia market was down from last report at $345-$355/st FOB in the region, with the low at Huntington, Ind., and the high reflecting reference pricing FOB Courtright, Ont. Field conditions were a little soggy in many sections of the region last week, and the moisture continued to delay harvest progress and fall fieldwork.

Black Sea: Prices have edged up a couple more dollars. Sources in Asia now say the latest fixtures put the market at $242-$245/mt FOB. Observers say the main push on prices comes from the plants that are currently in turnaround. Once these plants come back online by the middle of November, they say, availability should pick up ?Çô and with it, prices should ease off.

With U.S. prices remaining relatively stable and production about to come back online, overseas sources see little reason for a major jump in prices.

Sources point to the unusual situation of Black Sea and Middle East prices almost at parity. Eventually, say observers, one of the two will have to move in order to account for vessel size and freight disparities. Unfortunately for Asian buyers, say sources from that region, the Black Sea is expected to blink first. If that happens, the price from Yuzhnyy could drop back to the traditional $10-$20/mt difference while the Middle East price remains firm. For Asian buyers, that would mean no relief in prices.

Still, said one observer, having the Black Sea price drop $10/mt or so is better than having the Middle East price going up the same amount.

Middle East: Sabic continues to have problems with its SAFCO-IV plant. The facility is down, and when it will resume operations is still anyone’s guess. The absence of the plant is one reason industry observers say the ammonia market is so tight in the region. The other is on the demand side.

India continues to pull as many tons as it can. Sources figure the demand will continue into late January or early February.

For now, sources report that the old lower end of the market is pretty well gone.

A multi-tier market had developed as freight rates help industry watchers estimate netbacks. With producers calling the market dead center at $245/mt FOB, others point to deals in the Far East that have prices at $260-$285/mt CFR. Once $40/mt is taken off for freight – most likely a low number, say observers, but one that can be used – market prices show a range of $220-$245/mt FOB.

Whereas sources had once pegged the low end of the multi-tiered market closer to $215/mt FOB, the $220/mt FOB as a bottom price matches with the general discussion of price increases in the region. Few expect the price to stay at that level as demand continues and production remains constrained.

At the upper end, the $245/mt FOB is also seen as changeable. Estimated netbacks from the States indicate prices should be closer to $250/mt FOB.

No matter how the math works out, producers are apparently pleased with the current trend and are doing little more at this time than just filling orders and passing on their expectations for higher prices.

South Korea: Namhae closed a tender last week for 120,000 mt of ammonia for all of next year. These tons are to be divided evenly between December and July, and are in addition to the usual 30-35,000 mt Namhae takes roughly every month from its long-term contracts. Offers in the tender reportedly came from the usual lineup of suppliers to the area: Agrium, Mitsubishi, Sabic, Mitco/Malaysia, and possibly Transammonia and Yara.

Alaska: The Agrium plant in Kenai will shut down for the winter. According to local media reports, the shutdown will take place when consumer demand for natural gas is at its highest in the area. Local government officials told the Anchorage Daily News the move would assure adequate gas supplies for heating and electricity production.

The plant is slated to go down Oct. 29 and stay down until February or March. The Daily News also reported that the plant’s 150 employees will not be laid off during the shutdown. Some will work maintenance shifts and others will be encouraged to take vacation time, the company said.

Sources in Asia say the plant has one cargo of ammonia ready for shipment to Korea this week. After that, Asian buyers will be looking for substitute tons from nearby sources.

It was well known in the industry that the plant would come down to ease the natural gas situation in the area. As a result, said one Asian source, while the absence of the Alaskan material will be noticed, it will not cause a spike in prices. There was plenty of time, he said, for buyers to arrange for alternative sources.

To get around the problem of not having enough natural gas for winter operations in deference to local consumer needs, the company is engaged in a feasibility study of converting Alaskan coal to gas. If the gasification plant gets a green light, media reports say it will be the largest private construction project in that state since the Trans-Alaska oil pipeline.

UREA

U.S. Gulf: Granular urea prices continued to move up last week, though some wondered if there were really any end users buying product or if they were all simply traders. As in previous weeks, traders have found that it is cheaper to buy barges to meet commitments than to import. As the week began, sources reported new spot prompt business taking place at $210/st FOB. However, prices moved up as the week progressed, with Wednesday/Thursday numbers in the $215-$217/st FOB range.

Players say the U.S. market is simply not that attractive to imports and not to expect any extra cargoes. Sabic is reportedly still mulling a decision to divert a cargo into other markets. Other major importers say they already cut their import allotments, and expect to bring in less than last year. Buyers, on the other hand, can point to full domestic production. They also say that while end users may have been interested in filling in the low $200s/st FOB, they are not going to be enticed by higher numbers and a long winter of storage.

Sellers were quoting November forward prices in the $218-$220/st FOB range and December at $222-$224/st FOB.

Eastern Cornbelt: Granular urea was tagged at $250-$260/st FOB in the region, with the low reported FOB Cincinnati, Ohio, and out of spot Illinois River terminals.

Western Cornbelt: Granular urea was steady at $250-$260/st FOB, with the low out of Mississippi River terminals and the upper end to dealers FOB Sioux City, Iowa.

Northern Plains: Granular urea pricing remained at $250-$260/st FOB, with the low at Minneapolis and the upper end FOB Carrington, N.D. Delivered urea in North Dakota was pegged at $255-$265/st last week.

Great Lakes: Granular urea was $260-$270/st FOB, with the low quoted by Wisconsin sources and the upper end in Michigan. Delivered urea was pegged at $255-$265/st in southern Wisconsin, with the low for railed tons and the high for truck-DEL product. In Michigan, rail-delivered urea was quoted at the $265/st mark. On a spring prepay basis, Wisconsin sources quoted urea at $275/st DEL in late October.

Northeast: Granular urea was quoted at $260-$265/st FOB Baltimore and Philadelphia, with reference pricing reported at the $270/st mark FOB Philadelphia. The market FOB E. Liverpool, Ohio, however, was quoted at $250/st for granular and $255/st for prills, which was actually down from last report. Delivered urea in Delaware was tagged at the $285/st mark last week.

Bangladesh: Rumors are circulating that BCIC has issued a recommendation to the caretaker government that all offers in the September tender be awarded. The only problem is that a new government takes over Oct. 28. The first meeting on the awards is slated for Oct. 29. Sources in the area are skeptical that a decision will be reached immediately. What is clear to industry observers, however, is that Bangladesh needs the 300,000 mt of imports that would come from that tender. Sources report the following awards have been recommended:

All material is to be bagged. Most likely, say sources, all the awards will be covered out of China once the green light is given.

Pakistan: Rumors spread quickly that TCP called a tender, and then just as quickly the rumors began hedging on that announcement. What sources in Asia say happened is that TCP apparently got a call from the Ministry of Finance and Agriculture saying it might be time to buy some urea. The company then began calling the usual suppliers – major trading houses and some producers – to say they would most likely be holding a tender soon. They also inquired about the market situation.

When TCP reported back to the ministry that the major players in the industry were now ready for a tender, many in the ministry responsible for handling the paperwork had taken time off for the Eid holiday following the end of Ramadan. Eventually word got out that the tender would close Nov. 6, but as Green Markets went to press last week, the papers for the tender were still not issued.

Sources say TCP is tendering for 50,000 mt, with an option for another 50,000 mt. This tracks with the general expectation of Pakistan’s needs.

If the offered prices are favorable, said sources, then TCP will exercise its option for the second cargo. If, however, prices are too high, one trader said the company could just take one cargo and then hold another tender sometime in December – or scrap the tender completely.

Reports are that shipment for the Nov. 6 tender should be late November or early December. If the buying is pushed back, then shipment could be slated for early January.

The call for the tender surprised some in the industry. Reportedly, the ports are working as hard as they can to keep up with current vessels. Also, said one trader, the urea reserves in the country are in pretty good shape. Karachi inventories are high, and there is little reason to try to push more material into the warehouses at this time. Still, he said, a December arrival would be just about the right time, as some of the urea should begin to wind its way to the interior markets.

Black Sea: More than one trading house breathed a sigh of relief when the Ukrainian government lowered the KIP to $203/mt FOB late Oct. 19. Reportedly, one – and possibly two – vessels were lined up and denied loading rights because the cargoes slated for the ships were booked below the then KIP minimum of $211/mt FOB.

Sources say it was just bureaucratic inertia that caused the delay, and that no malice or manipulation was apparent.

The price out of Yuzhnyy has softened in such a way that no matter what producers say, no one is willing to talk about material for more than $213/mt FOB – and even that level is being discussed only for immediate top-off tons.

The port will be humming with urea export activity for the next four to six weeks, based on the MMTC/India tender. After that, say observers, producers will be hard pressed to find homes for their output.

With the KIP at $203/mt FOB, sources say buyers are pushing for that price level on position-taking purchases. Sources say that nothing had been done at that level by late last week, but that it would not be surprising to see something like it happen soon.

Once the Indian cargoes are loaded and gone, sources say there are precious few other major buyers around.

With more buyers willing to take granular or prills, the Yuzhnyy material has to compete against a global glut of granular. At the same time, occasional buyers interested only in prills, such as Vietnam, are beginning to produce more urea on their own.

Middle East: Sources report prills and granular are again at parity. Based on the last Indian business and reports from the area, sources say prills and granular are now going for $225-$228/mt FOB. While producers agree the two versions of urea are at parity, their pricing ideas are about $15/mt higher.

According to sources, however, no one is willing to pay more than the Indians at this time.

The sales to India, along with a few other deals here and there, have filled the order books for Middle East producers and put them in a comfortable state of mind this quarter. Any calls asking for November tons will be first dismissed as not possible. Subsequent discussions, however, could reveal that some November tons could be had, but at a higher price – hence the $240/mt FOB the producers are claiming as their due.

Indonesia: Reports are circulating in Asia that Kaltim is asking the government for permission to export granular urea. The company is pointing to its bulging warehouses and the possibility of shutting down its granular facility if exports are not allowed.

Even in the face of politically unpopular layoffs, the appropriate government ministries have expressed concern about exporting material amid reports there may be a urea shortage once the spring application season arrives.

Indonesian farmers are partial to prilled urea, and at first blush there should be no reason why granular material shouldn’t be exported. Sources say, however, that Kaltim and PIM have been blending granular with prills for local consumption and have not received any complaints.

Government officials say Kaltim should wait until the application season begins so that an accurate accounting of how much urea is needed can be calculated. Kaltim, reportedly backed by PIM, argues it could easily make up any shortcoming in granular between now and the February/March demand for urea.

Should Kaltim win its argument with the government, it would be sending tons into an already bloated international granular market. Still, said one source, any international sale would be helpful to the company. Most likely, if Kaltim is allowed to export, PIM will claim it wants to send its granular offshore as well.

All told, the two companies could provide 75-100,000 mt for export.

South Korea: Namhae issued a tender for 75,000 mt of granular urea, to be spread out over six months. The tender closed late last week.

The material purchased in this tender will be in addition to the usual 35,000 mt Namhae buys each month under long-term contracts.

Sources say that tender will not even create a small bump in the international market. Namhae wants granular urea, and there is plenty to be had from China to Libya. Whether this will be all Namhae needs is the big question.

At present, sources say the tender, the long-term purchases, and domestic production will keep the industrial giant happy. If, however, there is a greater need for urea, another tender could be called.

The main event that could spark additional needs is a resumption of fertilizer aid to North Korea. Sources report that following the nuclear test by North Korea, the Seoul government suspended all humanitarian aid programs to the North, including much-needed fertilizer.

Last year South Korea directly supplied about 600,000 mt of urea and NPK – mostly NPK – in charitable aid. These tons are in addition to the shipments received through European Community aid programs and assistance from other international bodies.

In the past, South Korea has not been shy about using the fertilizer shipments to wrest a concession from the North. Visits for divided families and a resumption of treaty talks have all been held hostage to the fertilizer shipments. The current Seoul government has indicated it will continue to withhold fertilizer aid until North Korea returns to the SixParty talks.

NITROGEN SOLUTIONS

U.S. Gulf: Most folks are talking about higher UAN barges prices, especially in light of higher gas prices and postings by CF. However, actual trades were hard to find. Most were putting the market within the $145-$148/st FOB ($4.53-$4.63/unit) range last week, with sellers predicting the market is heading into the $150s/st FOB for the next round of business.

Eastern Cornbelt: UAN pricing remained at $5.70-$5.90/unit FOB most river terminals in the region for spot or prepay tons, with the upper end of the UAN-28 range quoted at roughly $170/st ($6.07/unit) FOB.

Western Cornbelt: UAN-32 was quoted at roughly $180-$190/st ($5.63-$5.94/unit) FOB most regional terminals to dealers.

Northern Plains: UAN-28 was quoted at $166.60-$172.20 ($5.95-$6.15/unit) FOB Minnesota terminals, with delivered UAN in North Dakota pegged at $175/st ($6.25/unit) for shipments completed in the Nov.1 to March 1 time frame.

Great Lakes: UAN was pegged at $5.89-$6.15/unit FOB in the region, with the upper end in Michigan. Reference prices for UAN-28 out of Michigan terminals were quoted as high as $178/st ($6.36/unit) FOB in late October. On a rail-delivered basis, UAN-32 was quoted by southern Wisconsin sources at $200-$205/st ($6.25-$6.41/unit) last week.

Northeast: UAN-30 was quoted at $175-$178/st ($5.83-$5.93/unit) FOB Baltimore and Philadelphia. The market FOB terminals in upstate New York was quoted at $6.43-$6.50/unit.

AMMONIUM SULFATE

Eastern Cornbelt: Granular ammonium sulfate remained at $155-$160/st FOB in the region.

Western Cornbelt: Granular ammonium sulfate was steady at $155-$160/st FOB in late October.

Northern Plains: Granular ammonium sulfate was unchanged at $155-$160/st FOB and $165/st truck-DEL in the region.

Great Lakes: Granular ammonium sulfate was generally quoted at $160/st FOB in the region, with mid-grade sulfate pegged at the $145/st FOB mark in southern Wisconsin.

Northeast: Granular ammonium sulfate was $147-$160/st FOB in the region, with the low at Hopewell, Va., and the upper end to dealers FOB Philadelphia. Delivered granular sulfate remained at $155-$175/st, depending on location and quantity.

PHOSPHATE

Central Florida: Last week DAP business out of Central Florida was primarily loaded under existing contracts and within the previous week’s price range. The reason for the lackluster phosphate sales from the area has been the high price in comparison to that of the Gulf’s NOLA river market, which has been a few dollars lower than Central Florida. That is an abnormality that has not gone unnoticed by either buyers or sellers. What has really confounded the market has been the sharp increase in rail rates and the relatively low price for shipping by barge, although barge rates are also higher than a year earlier. Both producers and phosphate buyers agree that the differential of $10-$15/st between Central Florida and the river should be in effect, but that’s where the agreement ends. Producers believe the price on the river, where demand has been quickly overtaking supply, should go up, while buyers think the price in Central Florida should be lowered to account for the higher rail freight rates.

The new wrench tossed into the works was the announcement last week that Mosaic would be reducing production at its Faustina plant for another six to 12 weeks (see page 1), after a minor explosion from a welded joint in a heat exchange vessel in its ammonia plant occurred a couple of weeks ago. Mosaic had the option of taking ammonia supplies from the pipeline, but that would involve additional cost and would help push up ammonia prices overall. Considering the fall season in the domestic markets has been sluggish, and with the export market beginning to falter, bringing Faustina back to full production would be counterproductive. Mosaic has been bringing phosphate across the Gulf to the river market to take advantage of the balance of the fall season, but barges, in general, were becoming scarce.

In the northern areas of the Midwest, which are supplied out of Central Florida, adverse weather conditions have kept farmers from planting wheat seed. That will not only have a negative impact on phosphate sales, but could also mean farmers will be returning wheat seed to their dealers, who will take a loss on that deal – possibly as much as $10/t for the seed.

Despite the negative news so far this fall season, spring sales were expected to be robust, according to most sources. The reason was that dealers and some traders have been reluctant to fill their bins. With a bit of a rush toward late fall, many of those bins were running empty last week and will have to wait until spring to be refilled. That will create transportation problems when the spring season arrives and orders are abundant – if that actually happens.

The Central Florida DAP price range last week was unchanged at $218-$219/st FOB. Customers who place large orders get the lowest prices, but sources said no discounts were available at the low end of the price range. Mosaic discounts MAP $4/st from the price of DAP, while CF has no price difference. PotashCorp’s Central Florida reference price was still at $245/st FOB. In Texas, Agrifos’ truck prices were $255/st FOB for DAP or MAP, and activity was moderate.

U.S. Gulf: As the fall season approaches in the northern areas of the country, the glut of phosphate barges began to disappear last week. While that would seem to strike a balance, it did not. Areas farther south, like on the Arkansas, will continue buying into November, so additional supplies will be needed. Meanwhile, Mosaic announced last week that production at its Faustina plant will continue to be suppressed after the ammonia plant suffered a minor explosion in a welded pipe in an exchange vessel a couple of weeks ago and the damage was more extensive than originally anticipated. The reduced production will continue for between six to 12 weeks, but in the meantime Mosaic will bring DAP and other phosphates across the Gulf to help feed the market. In its press release, the company said Miss Phos, which has been the major supplier on the river for the past few months, will be busy loading approximately 30,000 mt that PhosChem sold to ConAgra for resale into Pakistan. That will make a dent in DAP supplies for the river market, in addition to the cutbacks by Mosaic.

On the Arkansas River, terminals ran out last week, as sales continued to be somewhat brisk. CF was said to have been out of DAP for 10 days late last week, and out of MAP for 22 days at that time. Most warehouses expected to receive barges by late last week or early this week, which should help ease the situation.

The best price received for a DAP barge on the river last week was $220/st FOB, which was for a barge already on the water and moving north. The cheapest NOLA DAP barges were still in New Orleans, and could be purchased for as little as $215-$216/st FOB. Most of the sales last week were in the $218-$219/st FOB range. The NOLA DAP barge price range for last week was $215-$220/st FOB, and the price appeared to be stabilizing. The previous week, the range was $216-$220/st FOB.

Eastern Cornbelt: Brisk plowdown movement of phosphates and potash was reported in areas of southern Illinois last week. DAP pricing remained at $253-$265/st FOB, with the low reported to dealers FOB Cincinnati. Spot pricing out of most river terminals in the region fell in the $255-$260/st FOB range last week.

MAP was tagged at $255-$265/st FOB in the region and TSP remained at $235-$245/st FOB, with the low on the river and the upper numbers inland. 10-34-0 was steady at $250-$260/st FOB in the region.

Western Cornbelt: Dealers reported some brisk movement of phosphates and potash in the southern Cornbelt before last week’s precipitation. DAP and MAP remained at $255-$265/st FOB most warehouses in the region, with the low on the Mississippi River. Dealer reference pricing FOB Sioux City was quoted in the upper-$270s/st for MAP and the low-$280s/st for DAP.

TSP pricing remained at $235-$245/st FOB, with the low on the river and the high inland. 10-34-0 was unchanged at $250-$255/st FOB in Nebraska and $255-$260/st FOB in Iowa.

Northern Plains: DAP was steady at $260-$263/st FOB the Twin Cities and Winona, Minn., with MAP quoted at $258-$260/st FOB. 10-34-0 was reported at $265-$270/st FOB in North Dakota.

Great Lakes: DAP remained at $265-$280/st FOB regional warehouses, with the low in Wisconsin and the upper end reflecting dealer levels out of Michigan shipping points. MAP was tagged at roughly $262-$276/st FOB, and TSP remained at a nominal $245/st FOB in the region, where available.

10-34-0 was $255-$265/st FOB for immediate ship in the region, with Wisconsin sources quoting the market at $273-$280/st FOB for prepay and/or on a book-and-store basis for spring.

Northeast: DAP and MAP remained at $275-$280/st FOB in the region. 10-34-0 was $260/st FOB terminals in upstate New York and $270/st DEL in Pennsylvania.

U.S. Export: PhosChem had a relatively good week last week, making sales of 137,000 mt. It sold two 40,000 mt vessels to Pakistan at a delivered price of $307/mt, which resulted in an FOB price of $255/st FOB, after deducting $52/mt for ocean freight. It also sold approximately 30,000 mt to ConAgra for resale into Pakistan at approximately the same price. In addition, PhosChem sold 27,000 mt into Argentina at $250/mt FOB.

Pakistan and India, which have been making additional inquiries during the past month, continue to look promising for PhosChem in the near future.

The DAP export price range changed last week from $253-$257/mt FOB the previous week to $250-$255/mt FOB. PhosChem would like to keep the price as high as possible, because its contract with the Chinese co-op calls for sales to be made at published prices and it still has 15 vessels to deliver before the end of March.

POTASH

Eastern Cornbelt: Potash inventories were described by one Illinois source as “pretty tight” after some heavy movement in recent week. The spot market was up slightly at $197-$202/st FOB regional warehouses, depending on grade and location, with the low end reported out of Illinois and Mississippi river warehouses for Russian tons. Direct-transferred Russian potash was said to be available at the $192/st mark in Illinois.

Western Cornbelt: Potash was quoted at $195-$200/st FOB regional warehouses, with reference levels reported at $204-$210/st FOB, depending on location and supplier. Agrium’s fuel surcharge rates increased on Oct. 23 to 18.5 percent in Iowa, Missouri, Nebraska, Kansas, Oklahoma, and Arkansas.

Northern Plains: Potash pricing FOB Saskatchewan mines remained at $175-$178/st for standard, $181/st for coarse, and $183-$188/st for granular. Agrium reposted 60 percent muriate of potash on Oct. 19 at $207/st FOB Shakopee, Minn., with rail-delivered postings at $212/st in southern Minnesota and $210/st in northern Minnesota. Agrium’s fuel surcharge rates increased on Oct. 23 to 18.5 percent in the Dakotas.

Great Lakes: Potash pricing, based on new reference levels, was quoted at $202-$210/st FOB regional warehouses last week, with the upper end quoted by Michigan sources for white granular tons. Wisconsin sources pegged the rail-delivered market at $212/st on the upper end, while warehouse pricing for red granular was listed at the $210/st mark FOB Green Bay from one supplier.

Agrium’s Oct. 19 postings for 60 percent muriate of potash included $207/st FOB Saginaw, Mich., and $210/st rail-DEL in Michigan and Wisconsin. Agrium also increased its fuel surcharge rates on Oct. 23 to 18.5 percent in Wisconsin.

Northeast: Potash was quoted in a broad range at $208-$246/st DEL in the region, with the low for railed granular tons in Delaware and the high for 62 percent soluble potash to points in New England. The warehouse market for granular potash FOB E. Liverpool had reportedly firmed from $206/st to $212/st on paper, but sources reported little new activity to test that market.

Agrium’s fuel surcharge rates, effective Oct. 23, included 23 percent in West Virginia, Maryland, Delaware, New Jersey, Pennsylvania, and New York.

SULFUR

Vancouver: The key to the sulfur market for both the world and the U.S. Gulf continues to be what happens in Vancouver, where prices have been slipping for the past several months. As of last week there were no indications the slide had come to an end, or would anytime soon. Prices for the fourth quarter and the next were expected to be down. That could put some sulfur producers, especially those in the northerly areas, in a negative price position.

West Coast: Fourth quarter contracts for the West Coast were expected to be settled sometime this week, and the price will most likely take another tumble downward. For refiners in northern California, that may very well mean paying for prillers to take the waste product off their hands, but how much was unclear late last week. In the Los Angeles area, where prillers are located nearer refineries, the price should still be positive, but lower.