Tampa:
First-quarter Tampa molten sulfur contracts were negotiated at $282/lt CFR, rising $99/lt from $183/lt CFR reported for the prior period. Sources were keeping an eye on possible impacts to the Tampa import market stemming from ongoing tensions between Russia and Ukraine.
Refinery utilization shifted lower in the U.S. Energy Information Administration’s (EIA) latest report, a reflection of operational struggles suffered by Gulf Coast refineries in the wake of Winter Storm Landon. Capacity utilization was reported at 85.3 percent for the week ending Feb. 11, a 2.9-point decrease from the week-ago 88.2 percent. The current-week rate remained ahead of the prior-year 83.1 percent, while failing to match the five-year average of 86.7 percent.
Daily crude inputs were reported averaging 14.902 million barrels/d through the period, falling 675,000 barrel/d from 15.577 million barrels/d posted previously.
U.S. Gulf:
Valero’s Houston, Texas, refinery on Feb. 11 began ramping up operations on a 95,000 barrel/d crude distillation unit (CDU) and a 38,000 barrel/d vacuum distillation unit (VDU), Genscape reported. The CDU and VDU were reported offline on Feb. 6 ahead of a refinery-wide shutdown triggered by a power outage on Feb. 7, while a sulfur recovery unit was noted shutting down on Feb. 9. All three units returned to normal operation on Feb. 12.
Valero’s Texas City, Texas, plant restarted an 85,000 barrel/d fluidic catalytic cracking unit (FCC) and a 110,000 barrel/d gas oil hydrotreater on Feb. 14. Both units were knocked offline amid a total refinery shutdown on Feb. 4.
Marathon restarted the 243,000 barrel/d Pipestill 3B crude section at the company’s Galveston Bay, Texas, refinery on Feb. 10, after the section’s CDU and VDU began ramping up on Feb. 9. Increased activity was also observed from the facility’s 280,000 barrel/d Pipestill 3A crude section starting on Feb. 10, ahead of a full restart achieved on Feb. 14.
Several additional units at the Galveston Bay refinery, including an SRU, were noted restarting on Feb. 13. A ramp-up of the plant’s 145,000 barrel/d FCCU3 FCC was ongoing on Feb. 14. The refinery was expected to continue slowly restarting units through approximately Feb. 19, following a complete Feb. 4 shutdown due to power loss.
Gulf export price ideas were typically reported in the $300-$305/mt FOB range, rising from the week-ago $290-$300/mt FOB due to rising offshore values. “Messiness” in the Gulf resulting from the recent Winter Storm Landon was described as complicating the current market.
Brazil:
Bucking expectations of a softening market, Brazil spot pricing was seen moving higher for the week, firming to the $357-$360/mt CFR level. Spot levels were previously reported at $355-$357/mt CFR.
Vancouver:
Sources called last-done Vancouver levels higher, lifting to $300-$305/mt FOB from $300/mt FOB reported previously.
Alberta:
Sulfur produced in Alberta was indicated netting back in a wide $167-$235/mt FOB range, up from $167-$230/mt FOB at last report.
West Coast:
West Coast prilled sulfur indications lifted slightly, to $300-$305/mt FOB. Molten contracts were pegged in the $230-$245/lt FOB range for delivery in the first quarter, up from $160-$170/lt FOB reported for 4Q 2021.
China:
Last-done at China continued to be pegged at $335/mt CFR, steady from one week earlier. Values were generally expected to rise in the next round of business.
ADNOC:
Sources quoted February ADNOC pricing at $320/mt FOB Ruwais, a $20/mt increase on January’s $300/mt FOB price.
Qatar:
Muntajat offered prills at $315/mt FOB Ras Laffan for February loading, players said, rising $14/mt from $301/mt FOB offered in January.
Kuwait:
Kuwait sulfur was heard at $315/mt FOB for February. Cargoes were noted at $300/mt FOB in the prior month.