Tampa:
Increasing activity was reported from numerous Midwest refineries during the week. Genscape observed unit restarts and ramp-ups at the Phillips 66 plants in Ponca City, Okla., and Wood River, Ill.; the Valero refinery in Ardmore, Okla.; the CVR facility in Coffeyville, Kan.; and Valero’s facility in Memphis, Tenn.
A sulfur recovery unit (SRU) was reported shutting down at the PBF refinery in Toledo, Ohio, on March 4. The unit was previously planned to enter a turnaround in February.
While too early to talk serious numbers, sources pointed to both the soaring international markets and historically low U.S. refinery utilization as indications of a looming price hike in the second-quarter Tampa molten contract. First-quarter Tampa agreements were penned at $96/lt CFR, rising from $69/lt in the prior period.
U.S. refinery utilization pushed higher for the week, according to the Energy Information Administration, as refineries impacted by the February arctic weather continued to restart units.
Refiners operated at 69.0 percent capacity for the period ending March 5, a 13.0 point jump from the previous week’s 56.0 percent rate. Capacity for the current week trailed both the year-ago 86.4 percent and the 83.4 percent five-year average.
Daily crude inputs were also up, lifting to an average 12.310 million barrels/d, a 2.407 million barrel/d increase from the week-ago 9.903 million barrels/d.
U.S. Imports:
January sulfur imports totaled 293,877 st, 7.3 percent above the year-ago 273,777 st. Totals were noted at 2.16 million st in the July-January window, a 5.5 percent increase from 2.05 million st in the previous year.
U.S. Exports:
The DOC reported sulfur exports totaling 69,078 st in January, an 11.4 percent increase from 61,985 st in January 2020. Sellers shipped 626,049 st in the July-January period, down 27.7 percent from the year-ago 865,808 st.
U.S. Gulf:
Genscape reported numerous refining activity increases on the Gulf Coast as Texas refineries continue to claw back from the arctic blast on Feb. 16-18.
Valero was reported restarted units at its Corpus Christi West and Port Arthur plants, while increasing activity was noted from the company’s Three Rivers, Texas, facility early in the week.
Motiva Ent. successfully restarted its Port Arthur facility’s 85,000 barrel/d VPS-2 crude section and 56,000 barrel/d DCU-1 coking unit on March 5, marking a complete restart of all units affected in the February shutdown.
Marathon started units at its Texas City and Galveston Bay refineries, while March 8 restarts at the Total plant in Port Arthur included a 165,000 barrel/d crude distillation unit (CDU), 55,000 barrel/d vacuum distillation unit (VDU), a 40,000 barrel/d catalytic reformer, and a 46,000 barrel/d naphtha hydrotreater. Genscape noted pre-startup levels from an 80,000 barrel/d CDU, an 80,000 barrel/d fluidic catalytic cracking unit (FCC), and other units.
Increased activity was observed at the ExxonMobil plant in Baytown, Texas, including from a 314,000 barrel/d crude section, while a 125,000 barrel/d FCC that was shut on Jan. 11 for planned maintenance remained offline for the week. A 28,000 barrel/d hydrocracker was restored to operation on March 6.
A partial restart was reported from the LyondellBasell refinery in Houston, although activity at the plant’s 140,000 barrel/d CDU 536 remained below operational levels. Multiple units were brought online at the Citgo facility in Corpus Christi, including a 69,000 barrel/d FCC and two sulfur recovery units.
Chevron’s Pasadena, Texas, plant remained mostly offline for the week, following the unexpected shutdown of a 116,000 barrel/d CDU that restarted on March 7. Increasing activity observed from other units remained below operational levels.
Delek restarted a 25,000 barrel/d FCC and a 23,000 barrel/d hydrotreater at Big Springs, Texas, while Genscape noted an operational ramp-up in progress on a 75,000 barrel/d CDU at the Flint Hills Corpus Christi East plant.
Farther east, Shell was reported shutting down a 44,000 barrel/d hydrocracker at its Norco, La., refinery following a bout of flaring and decreased furnace stack activity. Shell has elected to push back a planned restart at its 318,000 barrel/d Deer Park, Texas, refinery to March 13, Reuters reported.
Price ideas on Gulf exports were typically noted at a minimum $180/mt FOB based on current netback opportunities, while many argued that values would likely land in the $180-$190/mt FOB range should spot supply allow for participation in the current market.
Brazil:
Last-done Brazil spot imports continued to be noted at $218/mt CFR.
Vancouver:
Cargoes loading from Vancouver firmed to the $175-$183/mt FOB range in recent trading, players reported, up from the week-ago $170-$175/mt FOB.
Alberta:
Alberta sulfur netbacks were expected in a wide (-)$31-$113/mt FOB range, firming from (-)$31-$105/mt FOB in the previous report.
West Coast:
Ideas for West Coast prills moved to $175-$183/mt FOB, sources said, an increase from $170-$175/mt FOB at last report. Contracts for molten sulfur fell in the $70-$77/lt FOB range for first-quarter delivery.
China:
Recent China values continued to be heard in the $200-$210/mt CFR range, steady from one week earlier.
ADNOC:
March ADNOC offers stood at $183/mt FOB Ruwais for loading in March. The market was noted at $128/mt FOB in February, a $55/mt difference.
Qatar:
Prilled sulfur loading from Qatar was reported at $183/mt FOB Ras Laffan for March, rising $58/mt from the prior $125/mt FOB.