Tampa:
Brief outages of the 76,000 barrel/d crude distillation unit (CDU) and the 25,000 barrel/d vacuum distillation unit (VDU) were observed at the CVR Coffeyville, Kan., refinery on June 26, according to Genscape.
Sources continued to expect softer third-quarter contract values in the Tampa molten sulfur market, citing recent and rapid price erosion in a number of international markets, as well as steady supply in the U.S. domestic market.
Speculation surrounding a $20-$50/lt decline from the second-quarter $481/lt CFR contract voiced last week sharpened to a possible $80-$100/lt decline in the current week, players said, based primarily on recent softening in the Gulf and Brazil. Contract talks were said to have “not really even started” on June 30.
Refinery utilization moved up for the week ending June 24, the U.S. Energy Information Administration (EIA) reported. Operable nationwide refining capacity stood at 95.0% for the period, a 1.0 point increase from the previous week’s 94.0% rate and ahead of both the year-ago 92.9% and the 91.0% five-year average.
Daily crude inputs were also higher, moving to an average 16.666 million barrels/d through the week, a 403,000 barrel/d increase from the prior week’s 16.263 million barrel/d average.
U.S. Gulf:
ExxonMobil Corp. on June 25 experienced the shutdown of a 76,000 barrel/d catalytic reformer at its Baton Rouge, La., refinery, Genscape noted. The unit successfully restarted on the morning of June 29.
Last-done on the Gulf sulfur market was noted at $420/mt FOB. Falling values at Brazil and other applicable international markets were likely to push the Gulf near $400/mt FOB in the next round of business, some players argued.
Brazil:
Sources reported a Brazil-bound $435/mt CFR cargo concluding on June 30. Consisting of 35,000 mt and slated for loading at the end of July, the sale was described as originating from the “West Coast of North America.”
Including other recent business noted at $458-$460/mt CFR, players labeled the recent Brazil import price in a wide $435-$460/mt CFR range, down from $458-$600/mt CFR in the prior report. A CMOC import tender expected to conclude imminently will clarify the near-term market further, sources indicated.
Second-quarter contract pricing was quoted in the $480-$485/mt CFR range. Values were expected to move lower in the third quarter.
Vancouver:
Softer pricing out of China pulled the Vancouver export market down to $410-$425/mt FOB, falling from $440-$450/mt FOB at last report.
Alberta:
Combined molten and prilled sulfur pricing was indicated netting back $340-$411/mt FOB to sellers, softening from $366-$411/mt FOB one week earlier. Prilled tons trading out of Vancouver set the low of the range, while molten material contracted into the U.S. market established the high.
West Coast:
West Coast solid sulfur indications were noted in the $370-$425/mt FOB range, below the previous $440-$450/mt FOB level, and included a vessel reportedly bound for Brazil.
Players announced the settlement of third-quarter West Coast molten sulfur contracts during the week, reporting agreements at $370-$385/lt FOB, $5/lt below the prior $375-$390/lt FOB range. Individual contracts were noted softening $0-$10/lt compared to the second quarter, with average values landing at $377/lt FOB.
China:
The China import market reportedly fell below the last reported $480-$490/mt CFR level, slipping to the $440-$455/mt CFR range in recent trading, with the lower end of the range coming later in the week. Some players predicted the next round of business moving as low as $400-$420/mt CFR.
Qatar:
Posted Muntajat prices were noted at $428/mt FOB Ras Laffan for July loading, a $62/mt decline from $490/mt FOB reported for June.