Tampa:
Major Tampa molten sulfur market buyers and sellers on July 11 announced the conclusion of third-quarter contract negotiations, quoting updated contract values at $352/lt CFR, a $129/lt decline from $481/lt CFR in the second quarter.
The settlements came amid a flurry of tumbling prices reported in the international markets, as fears surrounding supply uncertainty stemming from the Russian invasion of Ukraine appeared to abate.
Significantly lower spot prices were reported out of key markets such as Brazil and China in the weeks leading up the settlement, with key supply markets Vancouver and the U.S. Gulf posting correspondingly lower pricing.
Strong refinery runs both nationwide and along the Gulf Coast added further downside pressure, sources said.
Following Tampa lower, contract indications for U.S. Gulf molten deliveries softened to $341/lt CFR from $470/lt CFR in the second quarter, while Houston contract values were indicated falling to $337/lt CFR, down from 2Q’s $466/lt CFR.
Nationwide refining capacity ticked higher for the week ending June 8, according to the U.S. Energy Information Administration (EIA). Utilization was reported at 94.9% of capacity through the period, a 0.4 point increase from 94.5% in the prior week. The current week’s rate outpaced both the year-ago 91.8% and the 91.2% five-year average.
Crude inputs were observed at an average 16.640 million barrels/d for the week, a 202,000 barrel/d increase from the prior week’s 16.438 million barrels/d.
U.S. Imports:
Imported sulfur totals were off 13.9% in May, falling to 242,720 st from the year-ago 281,865 st. July-May import totals stood at 2.93 million st, off 11.3% from the year-ago 3.30 million st.
U.S. Exports:
Sulfur exports for July-May firmed 45.0%, to 1.44 million st from last year’s 992,631 st. Totals were noted at 102,056 st for May, however, down 8.3% from 111,243 st in May 2021.
U.S. Gulf:
Based on reported trades and offers, U.S. Gulf sulfur pricing was noted in the $350-$375/mt FOB range through the week. Rumored additional international softening could drag the Gulf lower in the short-term, players suggested.
Brazil:
Recent Brazil spot levels were quoted in the $418-$425/mt CFR range, below the $419-$435/mt CFR range reported previously. Players noted a rumored trade concluding at $399-$400/mt CFR, but were unable to confirm that pricing.
Limited third-quarter contract numbers were understood to land in the $418-$425/mt CFR range. Due to the market’s prevailing weak conditions, some consumers were reported to forego entering into updated 3Q contracts for now. Contracts were reported at $480-$485/mt CFR in the second quarter.
Vancouver:
Falling values at China pressured the Vancouver export market into at least a $340-$350/mt FOB range, players said. A rumored price drop out of China would signal further declines in Vancouver if confirmed.
Alberta:
Based both on falling Vancouver prices and the softer third-quarter Tampa molten sulfur contract, combined netbacks on prilled and molten sulfur loading from Alberta dropped to the $237-$282/mt FOB range, down from $300-$411/mt FOB in the prior report.
West Coast:
West Coast prills trailed Vancouver to the $340-$350/mt FOB range, below the prior week’s $370-$375/mt FOB. Molten sulfur trucks loading from the West Coast were contracted in the $370-$385/lt FOB range for the third quarter, players said, below $375-$390/lt FOB reported for 2Q.
China:
Sources quoted the recent China import market lower at $370-$385/mt CFR, falling from the prior week’s $420/mt CFR. A trade rumored at $280/mt CFR went unconfirmed on July 14.
The quick price decline has reportedly deterred some from entering the market as players wait for the dust to settle. “[There is] very little [price] discovery right now, as buyers are hiding,” one market watcher said.
ADNOC:
Solid sulfur offers from the Abu Dhabi National Oil Co. were heard at $428/mt FOB Ruwais for loading in July, down $52/mt from June’s reported $480/mt FOB level.
Qatar:
Posted sulfur pricing from Qatar stood at $428/mt FOB Ras Laffan for July. Offers were posted at $490/st FOB in June, players said, a $62/mt difference.