Tampa:
Russia’s invasion of Ukraine on Feb. 24 layered a curtain of uncertainty over the U.S. sulfur markets, sources indicated, leading many to predict increasing values in the weeks ahead.
While non-Asian markets largely stood pat during the week, some speculated that a confluence of pre-invasion price increases, rising international supply uncertainty, and both planned and unplanned refinery outages in the U.S. Gulf could push Tampa to a sizable increase in the second-quarter contract.
First-quarter Tampa molten contracts were negotiated at $282/lt CFR, up $99/lt from $183/lt CFR in the prior period.
Refining capacity in the U.S. moved up for the week ending Feb. 18, according to the Energy Information Administration (EIA), as refinery production in the Gulf and Midwest showed signs of recovery from Winter Storm Landon.
Utilization was reported at 87.4 percent of nationwide capacity for the period, a 2.1-point increase from the previous week’s 85.3 percent. The rate topped both the year-ago 68.6 percent and the 84.2 percent five-year average.
Daily crude inputs were also higher, bouncing above the 15 million barrel/d mark to an average 15.246 million barrels/d for the week, up 344,000 barrels/d from the 14.902 million barrels/d total posted one week earlier.
U.S. Gulf:
A Feb. 21 hydrocracker explosion at the 578,000 barrel/d Marathon Garyville, La., refinery injured five and sparked a 4-5 hour fire, Reuters reported. Despite heavy emissions observed at the time of the event, Genscape reported no immediate unit shutdowns in the wake of the event, although a 114,000 barrel/d hydrocracker and a 35,000 barrel/d coker on turnaround since Feb. 8 remained offline. Prior to the explosion, a catalytic reformer and a naphtha hydrotreater were reported restarting on Feb. 20.
Valero on Feb. 18 suffered the shutdown of a 96,000 barrel/d fluidic catalytic cracking unit (FCC) and a 22,000 barrel/d alkylation unit at the company’s Corpus Christi (West), Texas, facility. Both units at the 192,000 barrel/d plant were restarted on the evening of Feb. 19.
A 116,000 barrel/d crude distillation unit (CDU) was restarted on Feb. 18 at the Chevron refinery in Pasadena, Texas, after going offline on Feb. 5 due to a boiler malfunction.
The Marathon Galveston Bay, Texas, refinery successfully restarted production at the plant’s 145,000 barrel/d FCCU3 FCC on Feb. 19, and followed with a restart of the 78,000 barrel/d Ultraformer 3 catalytic reforming unit on Feb. 20. The 128,000 barrel/d Pipestill 3A vacuum distillation unit (VDU) was powered down on Feb. 22. Operations were completely halted at the plant on Feb. 4 due to extreme cold.
Marathon shut a 72,000 barrel/d CDU and a 17,000 barrel/d VDU at its El Paso, Texas, plant on Feb. 21.
The TotalEnergies Port Arthur, Texas, refinery restarted the 80,000 barrel/d ACU-2 crude section on the morning of Feb. 22. The unit was reported going offline on Feb. 19.
Members of the United Steelworkers (USW) local 13-243 union voted on Feb. 21 to ratify a new employment contract at the 369,000 barrel/d ExxonMobil Corp. refinery at Beaumont, Texas, Reuters reported, ending a nearly 10-month lockout. As of Feb. 21, no date had been determined for a return to work.
Pricing continued to be reported at $300-$305/mt FOB out of the Gulf, unmoved from one week earlier. The range included a 10,000 mt prilled sulfur load reported at $302/mt FOB, destined for a Pacific port in Latin America.
Brazil:
Last-done at Brazil continued to be reported in the $357-$360/mt CFR range, steady from the prior report.
Vancouver:
Vancouver values were reported lifting to $320-$340/mt FOB following increases at China. Levels were last noted in the $300-$305/mt FOB range.
Alberta:
Rising values at Vancouver lifted Alberta netbacks to an indicated $167-$270/mt FOB, up from $167-$235/mt FOB reported previously.
West Coast:
West Coast prill indications followed Vancouver to a general $320-$340/mt FOB range. Sources tagged first-quarter molten sulfur contracts at $230-$245/lt FOB.
China:
China was noted reentering the spot import sulfur market for the first time since the country’s Feb. 1 Lunar New Year holiday, with players calling the updated market at $360-$370/mt CFR, up from $335/mt CFR reported previously.
ADNOC:
February Abu Dhabi National Oil Co. offers were quoted at $320/mt FOB Ruwais, up $20/mt from $300/mt FOB in the prior month.
Qatar:
Qatar prills were reportedly offered at $315/mt FOB Ras Laffan for loading in February, an increase of $14/mt from January’s $301/mt FOB level.
Kuwait:
Sulfur loading from Kuwait was noted at $315/mt FOB for the February period, up $15/mt from $300/mt FOB reported one month earlier.