Tampa:
Steady fourth-quarter firming observed from international sulfur markets was roundly expected to drag Tampa molten contracts “significantly” higher in first-quarter 2022. Fourth-quarter deals were pegged at $183/mt CFR.
Nationwide refining capacity ticked higher for the week ending Dec. 24, according to the U.S. Energy Information Administration (EIA). Refineries utilized a combined 89.7 percent of capacity through the period, firming 0.1 percentage points from the prior week’s 89.6 percent. The rate led the year-ago 79.4 percent, but trailed the 91.3 percent five-year average.
Crude inputs were noted lower, however, moving to an average 15.703 million barrels/d for the period, down 115,000 barrels/d from 15.818 million barrels/d logged one week earlier.
U.S. Gulf:
A Dec. 23 explosion and fire at the ExxonMobil Corp. Baytown, Texas, refinery near Houston injured four before being extinguished several hours later, local news outlets reported.
The unit involved in the incident remained shut down on Dec. 27, according to Reuters, resulting in reduced operating rates at the 560,000 barrel/d facility. A notice filed with the Texas Commission on Environmental Quality said the incident occurred in the plant’s Hydro Desulfurization Unit 1.
Genscape reported multiple unit restarts at the Shell Norco, La., refinery on Dec. 27, including a 250,000 barrel/d crude distillation unit (CDU); a 78,000 barrel/d vacuum distillation unit (VDU); a 110,000 barrel/d fluidic catalytic cracking unit (FCC); and a 40,000 barrel/d catalytic reformer. The units were taken offline on Aug. 28 ahead of Hurricane Ida. A previous restart was attempted over the Dec. 7-9 period.
Valero suffered the shutdown of a 96,000 barrel/d FCC and a 22,000 barrel/d alkylation unit at the company’s Corpus Christi (West), Texas, refinery on the morning of Dec. 29.
Recent Gulf export business was noted in the $240-$250/mt FOB range, steady from the prior report. December increases noted from key international markets could push pricing in the $260s/mt FOB in the next round of business, some players argued.
Brazil:
Pre-holiday spot trading into Brazil was noted in the $299-$304/mt CFR range. Contract volumes for delivery in the fourth quarter were quoted at $234/mt CFR, increasing from $221-$223/mt CFR in Q3.
Vancouver:
Players continued to quote the recent Vancouver market in the $245-$252/mt FOB range.
Alberta:
Molten and prilled sulfur selling from Alberta was indicated netting back to a wide $68-$182/mt FOB range, unchanged from the prior reporting period.
West Coast:
Genscape reported the shutdown of all monitored units at the HollyFrontier Puget Sound, Wash., refinery on the evening of Dec. 26. Among the units going offline were a 149,000 barrel/d crude section, a 58,000 barrel/d FCC, and a sulfur recovery unit.
Prills loading from the West Coast were indicated on par with Vancouver at $245-$252/mt FOB, unchanged from the prior report. Fourth-quarter molten sulfur contracts were noted at $160-$170/lt FOB. Values were projected to increase in Q1 2022.
China:
Solid sulfur spot imports at China were quoted in the $300-$305/mt CFR range in recent business.
ADNOC:
The Abu Dhabi National Oil Co. was reported offering December sulfur cargoes at $265/mt FOB Ruwais. Most sources expected a moderate price increase in January 2022.