Tampa:
Phillips 66 restarted a 68,000 barrel/d crude distillation unit (CDU), a 30,000 barrel/d vacuum distillation unit (VDU), and a 16,000 barrel/d coker at the company’s Wood River, Ill., refinery on the morning of July 22, Genscape reported.
The PBF Energy facility at Toledo, Ohio, suffered the shutdown of a 94,000 barrel/d CDU on July 21. The outage was accompanied by significant decreases in heating and furnace stack activity. The unit was reported to have restarted successfully on the evening of July 25.
Tampa molten sulfur contracts were reported at $352/lt CFR for the third quarter. Contracts were valued at $481/lt CFR in the second quarter, a $129/lt difference.
Operable U.S. refining capacity softened for the week ending July 22, according to the U.S. Energy Information Administration, slipping to 92.2% from the week-ago 93.7%. The rate was above both the year-ago 91.1% and the 89.9% five-year average, however.
Daily crude inputs slipped to 16.027 million barrels/d from 16.319 million barrels/d in the prior week, a 292,000 barrel/d decline.
U.S. Gulf:
The international sulfur markets were in a freefall during the week, the result of healthy worldwide supply contrasted against a reduction in near and medium-term demand.
Mid-$100s/mt CFR values reported out of Brazil during the week would leave U.S. Gulf indications in a wide $80-$150/mt FOB range, sources said. With Brazil inventories in good shape and the international markets facing downside pressure, sources said concluded Gulf price levels would likely register below the $100/mt FOB mark should new deals be confirmed.
A Gulf-originating cargo rumored selling into China at $10/mt FOB went unconfirmed on July 28.
Brazil:
Pricing at Brazil was heard dropping to at least $185/mt CFR, falling from recent values confirmed above the $400/mt CFR mark. Sources pegged firm offer levels down to $130/mt CFR on July 28.
Sources said prodigious supply and limited warehouse space in the U.S. Gulf market were fueling the softer market, while expectations of lower-than-average phosphate production from buyers in China and North Africa added pressure to markets worldwide.
While a negligible volume of short-term import contracts were reportedly concluded early in the third quarter at $418-$425/mt CFR, buyers were reported to abstain from securing full-quarter contract tons due to the market’s current volatile conditions.
Vancouver:
With Vancouver reportedly awash in sulfur and values dropping worldwide, recent price ideas were heard pressing below the $100/mt FOB threshold for the week. Further declines were likely in the short-term, sources said.
Alberta:
While the Alberta sulfur range was supported at the week-ago top end by third-quarter Tampa molten contracts, declining price ideas at Vancouver pushed netback indications down to a wide $20-$282/mt FOB range, below the $237-$282/mt FOB reported previously.
West Coast:
West Coast solid sulfur price ideas followed Vancouver lower to $90-$100/mt FOB. Molten sulfur agreements for the third quarter were quoted in the $370-$385/lt FOB range, down from $375-$390/lt FOB in the second quarter.
China:
The continuation of export controls on phosphates produced in China have sharply reduced demand in the world’s most prolific import sulfur market, players said, potentially adding more than 1 million mt to second-half 2022 supply.
As a result, traders described a number of unsold vessels previously expected to find buyers in China. Last-done pricing was reported in the $115-$120/mt CFR range for the week, with some suggesting $100/mt CFR to be right around the corner. The market was previously noted in the $250-$280/mt CFR range.
Middle East:
While no updated August prices were reported from ADNOC or Muntajat on July 28, players expected levels to drop by more than 50% from posted $428/mt FOB prices for July.
Russia:
Maximum sulfur export quotas announced by Russia on July 21 had little discernible impact on international market conditions through July 28, sources said.
Proposed by Russia’s Federal Antimonopoly Service (FAS) and approved by the Economic Development Ministry, the quotas will limit the total amount of sulfur exported from Russia to 1.1 million mt between Aug. 10 and Dec. 31.