Tampa:
Sources reported an early start to 2022 domestic sulfur talks during the week, with a number of buyers and sellers seeking greater stability in the face of the market’s whipsaw action of 2020 and 2021. The third-quarter Tampa molten contract was valued at $195/lt CFR, up $3/lt from $192/lt CFR in the prior period.
“Believe it or not, (players are) already having discussions for next year’s business,” said one source. “Entities (are trying) to reposition themselves in the upcoming contract year.”
On the supply side, domestic U.S. refinery production was portrayed as considerably improved so far in 2021, although tightness remained from producers in Alberta.
Operable domestic refining capacity softened for a fourth consecutive week, according to the U.S. Energy Information Administration, slipping to 91.1 percent from the week-ago 91.4 percent. The weekly rate nevertheless held above both the year-ago 79.5 percent and the 90.3 percent five-year average.
Daily crude inputs slipped below the 16 million barrel/d day mark for the first time since June 4, softening to 15.875 million barrels/d from the week-ago 16.007 million barrels/d, a 132,000 barrel/d decline.
U.S. Gulf:
The 50,000 barrel/d hydrofiner at the Citgo West refinery in Corpus Christi, Texas, returned to normal levels on July 22 after an earlier decrease in activity, Genscape reported. Intermittent activity decreases noted since mid-June were most recently observed starting on July 19.
A restart of the 69,000 barrel/d No. 2 fluidic catalytic cracking unit (FCC) at the Citgo East plant in Corpus Christi was slated to begin no later than July 27.
Genscape reported successful restarts of the 72,000 barrel/d crude distillation unit (CDU) and 17,000 barrel/d vacuum distillation unit (VDU) at Marathon’s El Paso, Texas, refinery on July 22. The units were taken offline on July 21.
Valero halted operation of the 65,000 barrel/d FCC at the company’s Houston, Texas, refinery on the morning of July 24. Restart procedures were reportedly underway on July 27.
Price ideas on the U.S. Gulf prilled sulfur export market were reported holding steady in the $185-$195/mt FOB range, unmoved from the prior report. Firming freight costs could further weigh on potential netbacks in the short term, players warned.
Brazil:
Recent Brazil market imports continued to be quoted in the $221-$230/mt CFR range, unchanged from one week earlier. Third-quarter contracts were heard in the $221-$223/mt CFR range, up from $213-$214/mt CFR in the previous quarter.
Vancouver:
Sources continued to portray the July 18 sulfur terminal fire at the Vancouver area’s Port Moody as a non-issue for the market. “(The) port fire has been of no consequence, as (the terminal) was going into turnaround anyway,” said one industry contact.
Vancouver prill pricing remained in the $175-$178/mt FOB range, steady from the previous report.
Alberta:
Suncor restarted a 12,000 barrel/d catalytic reforming unit at its Edmonton refinery, Genscape reported on July 27. The unit had been offline since April 16 as part of a planned turnaround.
Ongoing turnarounds in the Oil Sands region, combined with rumored production issues from Syncrude, were reportedly keeping Alberta-originating supply snug.
Alberta sulfur netbacks were steady in the $68-$108/mt FOB range, and included molten material contracted into the U.S. market at the low and prilled tons shipping offshore through the Vancouver export market at the high.
West Coast:
Genscape on July 26 reported the unplanned shutdowns of a 65,000 barrel/d hydrotreater, a 44,000 barrel/d South Isomax hydrocracker, and a 60,000 barrel/d North Isomax hydrocracker at the Chevron Corp. refinery in Richmond, Calif. The shutdowns were reported to result from a power outage.
PBF Energy shut a 25,000 barrel/d coking unit at the company’s plant in Martinez, Calif., on Jul 26.
No changes were reported for the West Coast prill market, leaving price ideas flat at $175-$178/mt FOB.
Contracts for the sale of molten sulfur from West Coast locations in the third quarter were noted in the $150-$155/lt FOB range, sources said, rising from $140-$155/lt FOB in the prior period.
China:
Refinery utilization from China state-owned refiners Sinopec, PetroChina, CNOOC, and Sinochem edged lower in July, according to Platts, dipping to 82.0 percent from 82.4 percent in June. Average throughput was noted at 7.58 million barrels/d against a nameplate 9.24 million barrels/d capacity. Run rates were widely expected to slip lower in August.
Last-done business from China continued to be noted in the $213-$216/mt CFR range, steady from the prior report.
ADNOC:
The Abu Dhabi National Oil Co. sulfur price for July reportedly fell $10/mt, to $175/mt FOB Ruwais. ADNOC offers stood at $185/mt FOB in June.
Qatar:
Muntajat offered July prills at $179/mt FOB Ras Laffan, down $4/mt from June’s $183/mt FOB price.
Kuwait:
The Kuwait solid sulfur market was reported at $180/mt FOB for July loading, a $3/mt decrease from $183/mt FOB in the previous month.
Benelux:
Third-quarter molten sulfur contracts in the European Benelux region were reported firming to the $202-$222/lt range, up from $190-$210/lt in the second quarter.