Sulfur

Tampa: In the week following third-quarter pricing announcements from fertilizer producers Mosaic and PotashCorp, conversations regarding the state of domestic molten sulfur were commonplace in the market.

Despite the latest $5/lt price reduction to $65/lt DEL, most agreed the new third-quarter price did not represent the end of falling prices in the domestic market. “I don’t think $65/lt is the floor, said one observer. “We seem to be oversupplied everywhere.”

Another source remarked that the Tampa price is now more influenced by the U.S. Gulf price, as well as the price of solid sulfur imported to Tampa. “So it’s more difficult to guess where the floor is now,” he said.

Others commented that it would take a shift in current fundamental conditions – domestic refinery curtailments, reduced Middle East production, or phosphate market strengthening – to “curb the downward momentum.”

“Refinery curtailments could happen, but the Middle East appears to have endless supply,” said one source. “A phosphate price rise is possible this fall, but I believe upside will be limited.”

Refinery runs softened last week, according to the U.S. Energy Information Administration (EIA). Domestic capacity was 92.4 percent for the week ending July 22, a 0.8 percent decline from the prior week’s 93.2 percent, and also down from the previous year’s 95.1 percent and the five-year average of 92.9 percent.

Average daily crude inputs were lower as well, EIA data indicated. Inputs were logged at 16.586 million barrels/d, a 277,000 barrel/d drop from 16.863 million barrels/d at last report.

U.S. Gulf: Price ideas for formed sulfur offered from the U.S. Gulf fell to $65/mt FOB, down $5/mt from the previous week’s $70/mt FOB.

Vancouver: More than two months after devastating Fort McMurray-area wildfires forced sweeping oil and sulfur curtailment in the Oil Sands region of Alberta, several sources declared the Alberta-supplied Vancouver export market to be recovered. “Vancouver is back to normal,” said one market player in late July.

Vancouver spot was quoted in the $75-$80/mt FOB range. Weakness in the Chinese market is expected to eventually pressure Vancouver lower, but recent sales into Mexico and Australia were said to have largely detached Vancouver from China’s last-heard $78-$80/mt CFR level.

Contract talks for third-quarter Alberta pricing were underway last week, leaving the market temporarily unchanged at (-)$55-$20/mt, despite the price cut at Tampa.

West Coast: Price ideas for West Coast formed product continued to fall in the $70-$75/mt FOB range. Third-quarter molten ran $50-$75/lt FOB.

ADNOC: The Abu Dhabi National Oil Co. offered July cargoes at $80/mt FOB Ruwais, $6/mt below the June price of $86/mt FOB.

Aramco: Saudi Aramco July offers were priced at $73/mt FOB Jubail. Cargoes were valued at $82/mt FOB in June, a $9/mt difference.

Tasweeq: Qatar state-run oil producer Tasweeq listed prilled sulfur at $72/mt FOB Ras Laffan for July. The June price was $83/mt FOB.