Tampa: Opinions on the state of the domestic sulfur market were sharply divided last week. With less than a month remaining in the first quarter, Middle Eastern producers moved new offer levels to a range of $87-$90/mt FOB, inviting interpretation from all corners of the market.
Some believed the new pricing was a sign that international markets had found a floor, while others called the move a precursor to yet another round of price cuts. “They’re consolidating,” said one market player. “I don’t think things look good for Q2 or Q3 unless there is a major outage somewhere.”
Still others interpreted the new pricing as a function of the currency market. Renewed strength in the dollar, coupled with steep declines in the Chinese yuan, have contributed to weaken worldwide commodities levels, sources said.
“Prices have been most affected by currency changes,” said one contact. “It appears currency has stabilized, and it would appear (sulfur) pricing has stabilized. I believe March will see substantial movement of volumes internationally.”
The first-quarter contract price of molten sulfur delivered to Tampa was $95/lt, down from $110/lt in fourth-quarter 2015.
Refinery utilization rose for the week, according to the U.S. Energy Information Administration. Capacity was put at 88.3 percent for the week ending Feb. 26, a 1.0 percent increase from the prior week’s 87.3 percent, and also higher than the year-ago 86.6 percent recorded and the five-year average of 86.2 percent.
Average daily crude inputs also grew. Inputs averaged 15.852 million barrels/d, 167,000 barrels/d below the previous week’s 15.685 million barrels/d.
U.S. Gulf: Falling international pricing was echoed in the Gulf market. Fresh price ideas were reported in the $75-$80/mt FOB range, a decline from $85/mt FOB at last report.
Vancouver: A softening Chinese spot market pushed Vancouver values lower last week, sources said. Last-done spot cargoes were reported in the $75-$85/mt FOB range, down from $80-$90/mt FOB at last report.
The China price fell as well, to $85-$90/mt CFR from $90-$95/mt CFR.
Alberta netbacks were unchanged at (-)$27-$60/mt FOB.
West Coast: Tracking Vancouver lower, West Coast prills were quoted in the $70-$80/mt FOB range, down from $75-$85/mt FOB at last report.
Molten sulfur contracts fell in the $65-$115/lt FOB range for the first quarter.
ADNOC: The Abu Dhabi National Oil Co. lowered prices last week. March cargoes were offered at $88/mt FOB Ruwais, a $17/mt FOB decline from the February price of $105/mt FOB.
Aramco: Saudi Aramco valued prill cargoes at $90/mt FOB Jubail for March loading. The February offer was $115/mt FOB, $25/mt above current-month levels.
Tasweeq: Qatar adjusted offer levels downward for March loading, to $87/mt FOB Ras Laffan, a $2/mt drop from $89/mt FOB in February.