Tampa:
The Tampa molten sulfur market kicked off the year on an upward trajectory, with the market’s largest buyer announcing concluded first-quarter contracts with suppliers at $282/lt CFR, a $99/lt increase over the prior quarter’s $183/lt CFR.
Both the quick settlement and the roughly 54 percent price jump took some players by surprise. Others saw the agreement more as a natural correction from the fourth-quarter price, which some viewed as out of step with the broader market at the time. “The large increase further substantiates that the price should have never gone down last quarter,” said one trader.
Others described the increase as a likely indicator of the forward market. “[Sulfur consumers] really want to keep the tons [onshore],” a source said. “They think international [values] will keep climbing, and maybe $282/lt CFR will end up looking like a good price by the end of the quarter.”
International sulfur market values have climbed steadily since October, with large import markets China and Brazil posting prices firmly above the $300/mt CFR level in recent trading, increasing competition for material produced in the U.S.
The market’s second largest buyer remained in negotiations on Jan. 6, although market players expected an eventual settlement at a similar level to the reported $99/lt increase.
Genscape reported multiple unit restarts at the HollyFrontier Tulsa East, Okla., refinery during the week, including the Dec. 31 restarts of a 76,000 barrel/d crude distillation unit (CDU) and a 16,000 barrel/d fluidic catalytic cracking unit (FCC). The restarted units had been offline since Dec. 15. A 91,000 barrel/d coking unit shut on Dec. 28 at the company’s Tulsa West facility was also restarted on Dec. 31.
Refinery utilization ticked upward in the U.S. Energy Information Administration’s (EIA) most recent report. Capacity was noted at 89.8 percent for the week ending Dec. 31, up 0.1 points from 89.7 percent reported previously. The rate topped the year-ago 80.7 percent rate, while tracking below the 91.8 percent five-year average.
Daily crude inputs also moved higher, to an average 15.867 million barrels/d, rising 164,000 barrels/d from the last reported 15.703 million barrels/d rate.
U.S. Gulf:
PBF restarted a 68,000 barrel/d FCC at its Chalmette, La., refinery on Dec. 31, Genscape reported. The unit was noted shutting down at approximately 5:00 p.m. on Dec. 27. Planned FCC and reformer turnarounds are scheduled at the plant through the first quarter.
Units successfully restarted on Dec. 30 at the Motiva refinery in Port Arthur, Texas, included a 210,000 barrel/d CDU, 85,000 barrel/d CDU, and a 100,000 barre/d vacuum distillation unit (VDU), Genscape said.
Marathon on Dec. 30 restarted a 78,000 barrel/d catalytic reformer at the company’s Galveston Bay, Texas, plant, shut since Dec. 25. A 55,000 barrel/d hydrotreater also taken offline on Dec. 25 resumed operation on Dec. 26.
TotalEnergies suffered an 80,000 barrel/d FCC outage at its Port Arthur unit on Dec. 31. On Jan. 1, the plant’s 80,000 barrel/d ACU-2 crude section was also noted going offline.
Last-done cargoes selling out of the U.S. Gulf were reported in the $250-$255/mt FOB range, firming from the last-reported $240-$250/mt FOB. Among the market’s recent business was a 25,000 mt cargo loading from Galveston/Beaumont and priced at $255/mt FOB. The tons were slated for loading in February.
Brazil:
Recent sulfur sales destined for Brazil were reported firming from the prior $299-$304/mt CFR to the $327-$340/mt CFR range. At least three Q1 cargoes were reported changing hands at the $327/mt CFR level.
Vancouver:
Vessels loading from Vancouver were noted firming to $255-$260/mt FOB, an increase from $245-$252/mt FOB at last report. The ongoing normalization of prior weather-related supply constraints led some to predict continued firming in the next round of business.
Alberta:
Rising values at Vancouver lifted the top end of indicated Alberta netbacks to approximately $190/mt FOB. The bottom of the range firmed to about $167/mt FOB, in line with the increase at Tampa.
West Coast:
Marathon on Jan. 2 restarted a 52,000 barrel/d FCC at its Anacortes, Wash., refinery, Genscape reported. The unit was noted going offline early on Dec. 27. Price ideas on West Coast solid sulfur tons followed Vancouver to a $255-$260/mt FOB range.
Molten sulfur contracts were reporting firming to $230-$245/lt FOB for the first quarter, a $70-$75/lt increase from the prior period’s $160-$170/lt FOB range. Most contracts were reportedly inked prior to the large price increases that came after the holidays.
China:
Sources described recent spot import business at China firming to $315-$320/mt CFR, up from $300-$305/mt CFR at last report.
ADNOC:
The Abu Dhabi National Oil Co. lifted January sulfur postings to $300/mt FOB Ruwais, sources said. The market was reported at $265/mt FOB in December, a $35/mt difference.
Qatar:
January prill offers from Muntajat were heard at $301/mt FOB Ras Laffan, a $36/mt increase from $265/mt FOB in December.
Kuwait:
Solid sulfur loading from Kuwait was noted firming to $300/mt FOB in January, increasing $33/mt from December’s reported $267/mt FOB offer.