Tampa:
Citing a newly bearish tone in the offshore markets, steady onshore sulfur supply, and softening prices observed in a number of international markets, players generally expected a mild decline in the third-quarter contract price of molten sulfur delivered to Tampa.
Some voiced speculation of a $20/lt downward move from the second-quarter $481/lt CFR contract. Most agreed that the prospect of a rollover from the prior quarter, discussed as recently as one week ago, was likely off the table.
U.S. refinery utilization ticked lower for the week ending June 10, according to the Energy Information Administration (EIA). Refineries operated at 93.7% of capacity for the period, a 0.5 point decrease from 94.2% in the prior report. The current-week values remained ahead of both the year-ago 92.6% and the 89.8% five-year average.
Crude inputs fell slightly to an average 16.320 million barrels/d through the period, a 67,000 barrel/d decrease from the prior 16.387 million barrel/d average.
U.S. Imports:
Sulfur imports for July-April were off 11.0% from the year-ago, to 2.69 million st from 3.02 million st. April imports moved 41.5% lower, to 195,922 st from the prior 334,887 st.
U.S. Exports:
Sulfur exports rose 47.3% in July-April, to 1.30 million st from the year-ago 880,435 st. Shipments were counted at 187,885 st for April, lifting 181.0% from the year-ago 66,860 st.
U.S. Gulf:
Valero shut a 96,000 barrel/d fluidic catalytic cracking unit (FCC) at the company’s Corpus Christi (West), Texas, refinery on June 11, Genscape reported. A decrease in overall refining activity was observed at the time of the shutdown.
Several units were reported going offline at the Calcasieu Lake Charles, La., refining facility on June 11. The outages were accompanied by “significantly” reduced activity levels. Multiple units were previously observed offline between May 25 and June 8. The plant’s 34,000 barrel/d No. 5 crude distillation unit (CDU) was noted restarting on June 14, followed by restarts of the 73,000 barrel/d No. 2 CDU and an associated 30,000 barrel/d vacuum distillation unit (VDU) on June 15.
ExxonMobil Corp. was noted shutting down the 225,000 barrel/d Pipestill 10 crude section at its Baton Rouge, La., refinery on June 13. Pipestill 10 was previously observed offline on June 7-9.
Recent business out of the U.S. Gulf was observed pressuring values to the $470-$475/mt FOB range, below $470-$480/mt FOB in the prior report.
Brazil:
The Brazil import market was seen softening to a $515-$520/mt CFR range for the week, off $5/mt from the prior week’s $520-$525/mt CFR. While a rumored late-week trade below the $500/mt CFR mark went unconfirmed on June 16, many expected the Brazil market to track in the high-$400s/mt CFR in the next round of business.
Prilled sulfur contracts for second-quarter delivery were pegged at $480-$485/mt CFR.
Vancouver:
Softening at China was heard to weigh on Vancouver exports, with players noting recent values in the $470-$475/mt FOB range. The market was previously reported at $475-$480/mt FOB.
Alberta:
Alberta netbacks were quoted at $366-$411/mt FOB, unmoved from the prior report.
West Coast:
Solid sulfur loading from the West Coast was indicated in the $470-$475/mt FOB range, falling from the week-ago $475-$480/mt FOB. Molten sulfur contracts for the third quarter were reported at $375-$390/lt FOB, an increase from $230-$245/lt FOB in the prior period.
China:
Import cargoes sold into China were softer at $520/mt CFR, falling from $520-$525/mt CFR reported previously. A reported move below the $500/mt CFR-equivalent mark in the country’s domestic electronic and retail sulfur markets indicated likely further declines in the next round of business, sources said.
Buyers were heard rejecting new import offers in the $505-$510/mt CFR range during the week, while approximately 30,000 mt of material was rumored in talks at a $480/mt CFR price point.
ADNOC:
Abu Dhabi National Oil Co. offers for June were heard at $480/mt FOB Ruwais. A number of large buyers were heard to reject pricing at this level, indicating possible softening in the market’s July offer.
Qatar:
Qatar solid sulfur tons were priced at $490/mt FOB Ras Laffan for June loading, up $30/mt from May’s $460/mt FOB offer. A sealed tender from Qatar Petroleum marketing arm Muntajat was rumored to return bids in the $420-$440/mt FOB range, although that price level remained unconfirmed on June 16.