Tampa:
Fourth-quarter molten sulfur contracts were reported at $183/lt CFR, down $12/lt from the prior $195/lt CFR agreement. Some players suggested the lower Q4 Tampa pricing, contrasted with rising international values, could prove an impediment to demand fulfillment in the U.S. domestic market.
“This dynamic is going to make it quite difficult to balance out U.S. (supply and demand), with Canada directed offshore for better netbacks and U.S. Gulf sulfur improving netbacks offshore,” said one source.
U.S. refining utilization moved higher for the week ending Oct. 22, the Energy Information Administration (EIA) reported. Capacity reached 85.1 percent for the period, a 0.4-point rise from 84.7 percent in the prior report, and topping both the year-ago 74.6 percent and the 84.9 percent five-year average.
Daily crude inputs also ticked higher, averaging 15.048 million barrels/d compared to the week-ago 14.990 million barrels/d, a 58,000 barrel/d difference.
U.S. Gulf:
Genscape reported increasing activity from the 110,000 barrel/d fluidic catalytic cracking unit (FCC) at Shell’s Norco, La., refinery starting on Oct. 21, although the unit remained below operational levels. A gradual restart of the facility has been underway in October, following a full shutdown on Aug. 28 ahead of Hurricane Ida.
A number of units were restarted at the Valero facility in Port Arthur, Texas, on Oct. 21, including a 100,000 barrel/d coking unit, a 57,000 barrel/d catalytic reforming unit, and a 55,000 barrel/d diesel hydrotreater. The returning units completed a restart of the facility after an Oct. 17 unplanned shutdown, triggered by a partial loss of power and third-party utilities.
A shutdown of the 106,000 barrel/d heavy gas oil hydrotreater at Marathon’s Garyville, La., refinery was reported on Oct. 26.
Sulfur market players typically noted Gulf export price ideas steady in the mid-$190s/mt FOB, unchanged from one week earlier.
Brazil:
Last-done on the Brazil spot market was heard flat at $244-$246/mt CFR. Indications for the next round of business were noted closer to $260/mt CFR. Q4 contracts at Brazil were quoted at $234/mt CFR, increasing from $221-$223/mt CFR in the third quarter.
Vancouver:
Rising international values were noted lifting the Vancouver export market to the $185-$200/mt FOB range, up from $180-$192/mt FOB in the prior report.
Alberta:
Alberta sulfur netbacks firmed to $68-$130/mt FOB on higher Vancouver pricing, players reported.
West Coast:
Genscape reported a complete shutdown of the Chevron refinery in Richmond, Calif., on Oct. 24. All monitored units were noted going offline, including the 257,000 barrel/d crude section, a 90,000 barrel/d FCC, and both of the facility’s hydrocrackers.
Price ideas on solid sulfur loading from the West Coast were noted firming to a general $185-$200/mt FOB range for the period, up from $180-$192/mt FOB in the prior report. Molten sulfur contracts were noted at $160-$170/lt FOB for loading in the fourth quarter.
China:
Recent China spot imports were reported firming to $240-$255/mt CFR. The market was last called $240-$250/mt CFR.
ADNOC:
Abu Dhabi National Oil Co. (ADNOC) prills stood at $193/mt FOB Ruwais for October, $13/mt above the September price of $180/mt FOB.
Qatar:
The Muntajat posting for October was noted at $192/mt FOB Ras Laffan. Qatar sulfur was reported at $178/mt FOB in the prior period, a $14/mt difference.