Tampa:
Genscape reported increased activity levels from a 56,000 barrel/d distillate desulfurizer unit (DDU) at the BP Whiting, Ind., plant on the morning of July 29, followed by a successful unit restart on July 31. The DDU was reported shutting down on July 12.
The BP/Cenovus plant at Toledo, Ohio, saw restarts of several units on July 28, including a 120,000 barrel/d crude distillation unit (CDU), a 55,000 barrel/d fluidic catalytic cracking unit (FCC), and a 27,500 barrel/d coker. The units were reported going offline on April 20-21 as part of a planned 60-day turnaround.
Following a shutdown reported on July 20, Citgo restarted a sulfur plant at its Lemont, Ill., refinery on July 30. Additionally, a 28,000 barrel/d catalytic reformer was taken offline on July 26, while a 189,000 barrel/d crude section and an 18,000 barrel/d coker have been shut down since July 12, Genscape reported.
Third-quarter contracts for molten sulfur delivered to Tampa were settled at $352/lt CFR, down $129/lt from the second quarter’s $481/lt CFR agreement.
Refinery utilization moved down for the week ending July 29, the U.S. Energy Information Administration (EIA) reported. Refineries ran at a combined 91.0% capacity through the period, a 1.2-point decline from 92.2% reported one week earlier. The current rate trailed the year-ago 91.3% while topping the five-year average of 90.2%.
The EIA reported average daily crude inputs falling below 16 million barrels/d for the first time since the week ending May 13. Inputs for the week registered at an average 15.853 million barrels/d, down 174,000 barrels/d from the week-ago 16.027 million barrels/d.
U.S. Gulf:
Genscape noted restarts of the 73,000 barrel/d No. 2 CDU and a 30,000 barrel/d vacuum distillation unit (VDU) at the Calcasieu Lake Charles, La., refinery during the afternoon of July 28. The units were reported shutting on July 27.
Shutdowns of the 97,000 barrel/d Pipestill 8 CDU and a 44,000 barrel/d VDU were observed at the ExxonMobil Corp. facility in Baton Rouge, La., on the morning of Aug. 8. The outages were accompanied by significantly reduced activity at the plant, Genscape noted.
Gulf sulfur pricing continued to slide for the week. Offers reported around the $100/mt CFR range into Brazil indicated Gulf netback potential up to $60/mt FOB, below the $150/mt FOB level reported previously, while a cargo was rumored selling out of the Gulf during the week in the neighborhood of $40/mt FOB. Players understood the recent low to land around the $10/mt FOB mark, based on a previously rumored cargo selling into China.
Sources traced the declining values to a mix of overflowing seller inventories butting up against a lack of nearby demand. Those conditions were reportedly present in numerous markets worldwide.
Brazil:
With price levels continuing to show declines worldwide, spot values at Brazil were reported in the $90-$100/mt CFR range, falling from $130-$185/mt CFR for the prior week. Players noted bids returning closer to $50/mt CFR.
Due to the market’s continued volatility, Brazil players were reportedly abstaining from entering into purchase contracts for delivery in the third quarter.
Vancouver:
Sources noted solid sulfur pricing out of Vancouver softening to the $55-$60/mt FOB range for the week, a decline from $90-$100/mt FOB at last report.
Alberta:
Alberta combined solid and molten sulfur netbacks were indicated in a wide (-)$15-$282/mt FOB range for the trading period, falling from the week-ago $20-$282/mt FOB. Molten tons contracted into the U.S. market set the top of the range, while solid material selling internationally through the Vancouver export market established the low.
West Coast:
West Coast prill levels were indicated at $55-$60/mt FOB, down from the prior week’s $90-$100/mt FOB. Third-quarter molten contracts were reported at $370-$385/lt FOB, $5/lt below the $375-$390/lt FOB range published for the second quarter.
China:
Import sulfur values at China were noted at $90-$100/mt CFR, falling from $115-$120/mt CFR one week earlier. A projected 4.5-5 million mt year-over-year reduction in phosphates exported from China in 2022 could translate to an additional 1.2-1.8 million mt of sulfur supply available internationally in second-half 2022, sources said.
ADNOC:
Abu Dhabi National Oil Co. posted sulfur prices for August were heard at $85/mt FOB Ruwais, an 80% decline from $428/mt FOB posted for July.
Qatar:
Sources described August price postings from Qatar Petroleum marketing arm Muntajat at $77/mt FOB Ras Laffan. The July posted price was referenced at $428/mt FOB, an 82% decline.