Sulfur
Tampa: Mosaic has begun preliminary discussions for third quarter contract prices for molten sulfur delivered to Tampa. PotashCorp said it had not started its talks as of late last week, however.
Prices for molten sulfur delivered to Tampa have been lower than on the world market, and that was likely to continue after negotiations are complete. Most were anticipating a drop of $10-$30/lt for the third quarter.
Supply had been running a little above demand, but the problems PotashCorp had at its White Springs mine and processing facilities added to the abundance. Tropical Storm Debby caused flooding and a power outage at White Springs and the company was in the process of bringing the facility back online last week. Production at Mississippi Phosphates had returned to normal last week after being shut down by OSHA in early June following two deaths from two separate explosions.
Refinery operating capacity rate fell from 92.6 percent to 92 percent, but the drop of 0.6 percent still kept the rate at a historically high number, according to the U.S. Department of Energy.
If demand for sulfur on the world market pushes prices higher after the settlement for the third quarter, sulfur producers could turn to the Gulf prill market, where prices were running higher than the Tampa price.
U.S. Gulf: Prill prices exported from the Gulf of Mexico were said to be in the $180/mt range last week.
Vancouver: It was a little unclear last week if the current weak spot market for sulfur out of Vancouver was just a blip on the radar or will carry over into new contracts. Some expect new contracts to yield close to $200/mt FOB, while others think the price could drop as much as $25/mt FOB.
West Coast: Containers were being shipped from Seattle in the $165-$175/mt FOB range last week, and that could affect prices for both Vancouver and, possibly, the Gulf of Mexico.
Benelux: The current price range was $210-$228/mt FOB, but a new range was expected soon.