Tampa:
Increasing price ideas in a number of international sulfur markets precipitated a sharp increase in speculation surrounding the Tampa molten market’s next contract.
With Brazil imports tentatively expected to see a 15-20 percent jump in the next round of business, players said Tampa could rise $130-$150/lt from the market’s current $282/lt CFR contract, rising from week-ago expectations of a $70-$100/lt increase.
U.S. refinery utilization ticked upward for the week ending March 18, the U.S. Energy Information Administration (EIA) reported. Refiners operated at a combined 91.1 percent capacity for the period, a 0.7 point increase from the prior week’s 90.4 percent rate. The current rate remained ahead of both the year-ago 81.6 percent and the 88.1 percent five-year average.
Daily crude inputs also moved up, to an average 15.878 million barrels/d, a 277,000 barrel/d increase from the week-ago 15.601 million barrels/d.
U.S. Gulf:
Prices on sulfur loading from the U.S. Gulf continued to be heard in the $365-$375/mt FOB range. Should the Brazil market rise as expected, sources expect significant near-term increases in the Gulf.
Brazil:
With the Brazil import market continuing to be heard in the $410-$415/mt CFR range, players expected a pending CMOC purchase tender to lift the market into the $480s/mt CFR in the next round of business.
Vancouver:
A March 20 train derailment in North Vancouver caused solid sulfur to leak onto Canadian National Railway (CN) property, local news outlets reported. At least two railcars containing solid sulfur were involved in the accident, CN told CTV News. The cause of the derailment remained under investigation on March 21.
Vancouver prill values were seen lifting to the $390-$400/mt FOB range, rising from $380-$390/mt FOB at last report.
Alberta:
Alberta netbacks climbed to $167-$330/mt FOB based on rising Vancouver prices. Alberta was previously noted in the $167-$320/mt FOB range.
West Coast:
A breakdown in contract negotiations and a resulting plan to strike by employees at the Chevron Corp. refinery in Richmond, Calif., prompted the company to preemptively remove approximately 500 United Steelworkers (USW) Local 5 union members from the premises on March 20, Reuters reported.
The 245,000 barrel/d plant’s previous employee contract expired on Feb. 1. Two offers for an updated contract were voted down by union members, leading to a planned work stoppage.
Prilled sulfur loading from the West Coast was indicated in the $390-$400/mt FOB range. The first-quarter molten sulfur price was contracted at $230-$245/lt FOB, players said.
China:
Spot pricing at China continued to be noted at $430-$435/mt CFR, players said. Ongoing turmoil in the international markets was expected to push values higher in the short-term.
ADNOC:
March prill offers were heard at $335/mt FOB Ruwais from the Abu Dhabi National Oil Co. (ADNOC), a $15/mt increase from February’s $320/mt FOB level.
Qatar:
Muntajat offers for March were reported at $333/mt FOB Ras Laffan, up $18/mt from $315/mt FOB in February.
Kuwait:
Solid sulfur cargoes loading from Kuwait were described at $343/mt FOB for March. Sources put prices at $315/mt FOB for February, a $28/mt difference.
Russia:
A multiyear plan to modernize Russia’s Soviet-era oil refinery system could be delayed due to international sanctions, Platts reported.
The delay proposal from Russia’s energy minister was made in response to export controls levied by both the U.S. and Japan in response to Russia’s invasion of Ukraine. Both countries banned the export of refining technology to Russia in early March. Similar sanctions proposed by the EU were granted preliminary approval.
Russia’s refinery modernization project began in 2007 and has completed its first phase. The effort’s final phase was due to be completed in 2026, but is now likely to be delayed to at least 2028.