Tampa:
BP on Aug. 8 announced the sale of its 50% stake in the BP-Husky Refinery in Toledo, Ohio, to JV partner Cenovus for $300 million, plus inventory costs. The deal is projected to conclude later in 2022. The refinery has a nameplate capacity of 160,000 barrels/d.
Molten sulfur contracts for tons delivered to Tampa were concluded at $352/lt CFR for the third quarter. Contracts were reported at $481/lt CFR in the second quarter, a $129/mt difference.
US refinery utilization moved up for the week ending Aug. 5, the Energy Information Administration (EIA) reported, lifting to 94.3%, a 3.3% rise from the week-ago 91.0%. The rate pushed ahead of both the year-ago 91.8% and the 92.0% five-year average.
Crude inputs also moved higher, recording an average 16.581 million barrels/d for the week, a 728,000 barrel/d increase from the previous week’s15.853 million barrels/d rate.
U.S. Imports:
July-June sulfur imports softened 11.4% year-over-year, to 3.17 million st from 3.57 million st. June imports fell 12.6%, to 235,873 st from the year-ago 269,817 st.
U.S. Exports:
Sulfur exported from the US in June was up 174.0%, to 145,806 st from the prior year’s 53,207 st. Exports totaled 1.59 million st for July-June, rising 51.6% from the previous year’s 1.05 million st.
U.S. Gulf:
Genscape reported significant unit outages from the country’s second and third largest refineries during the week.
The 145,000 barrel/d FCC-3 fluidic catalytic cracking unit was reported shutting at the Marathon Galveston Bay, Texas, refinery on Aug. 7, triggering a flaring event. At 593,000 barrels/d, the refinery is the nation’s second largest.
Marathon’s refinery at Garyville, La., the third-largest refinery in the country at 585,000 barrels/d, suffered an abrupt shutdown of the 325,000 barrel/d CDU 210 crude distillation unit and an associated 148,500 barrel/d vacuum distillation unit (VDU) early on Aug. 9. The CDU was reported restarting later in the day on Aug. 9, while the VDU was restarted on Aug. 10.
A 96,000 barrel/d FCC was noted shutting down on Aug. 8 at the Valero Corpus Christi (West), Texas, refinery. The event was accompanied by significant decrease in activity, according to Genscape. The unit was successfully restarted on Aug. 10.
Sources reported a 15,000 mt sulfur sale out of the Gulf during the week. The material was priced at $50/mt FOB, with loading scheduled for September.
Based on recent reported trades, the Gulf sulfur market was seen in a wide $10-$50/mt FOB range, softening from $10-$60/mt FOB reported previously.
Brazil:
Sources described little change in the Brazil import sulfur market. Recent offers continued to be heard at $90-$100/mt FOB, with bidding quoted closer to $50/mt FOB. With the market’s major players described as flush with inventory, there was little motivation for buyers to increase bids anytime soon.
Vancouver:
A price bump at China saw the Vancouver market strengthening to the $60-$65/mt FOB range, sources said. Values were previously reported at $55-$60/mt FOB.
Alberta:
Due to rising values at Vancouver, Alberta sulfur netbacks edged into the (-)$10-$282/mt FOB range, lifting from (-)$15-$282/mt FOB one week earlier.
West Coast:
Price ideas for solid tons loading from the West Coast followed Vancouver to $60-$65/mt FOB, up from $55-$60/mt FOB at last report. Molten contracts were noted at $370-$385/lt FOB for the third quarter, down from $375-$390/lt FOB in the prior period.
China:
Sources reported sulfur import values at China bouncing slightly to the $95-$105/mt CFR range, up from $90-$100/mt CFR at last report. Bids were noted tracking around $95/mt CFR, while retail pricing was heard lifting to a $110/mt CFR-equivalent.
The market has remained in a state of uncertainty following its recent and rapid price drops, players said. “I think all are still in shock over the dramatic decrease in price in such a short period of time,” said one source. “The price decrease has caused some demand to freeze its buying, as (buyers) work out from underneath higher-priced inventory.”
ADNOC:
Abu Dhabi National Oil Co. offers for August were heard at $85/mt FOB Ruwais, down 80% from July’s $428/mt FOB posting.
Qatar:
August Muntajat prill offers were posted at $77/mt FOB Ras Laffan, sources indicated, falling 82% from $428/mt FOB offered in July.