Tampa:
Sources reported the settlement of fourth-quarter Tampa molten sulfur negotiations on Oct. 7. Consumers and suppliers agreed to a $90/lt CFR contract price for the period, down 74.4% from $352/lt CFR in the third quarter, and in line with earlier expectations of a $90-$105/lt CFR settlement.
The prior Tampa contract was concluded just weeks before a dramatic tumble in international sulfur market pricing. A confluence of swollen supply, the easing of market uncertainties stemming from the war in Ukraine, and production cuts from several phosphate producers resulted in a greater number of sellers than willing buyers during the quarter.
On July 1, the US Gulf sulfur market – traditional guidepost for pricing at Tampa – was reported at $420/mt FOB, down from a recent $480/mt FOB high. Prices plummeted to $10-$50/mt FOB for the week ending Aug. 12, a nearly 97.6% tumble from the start of the quarter, before bouncing to the last-reported $90-$110/mt FOB range. Many sources in recent weeks expressed a belief that the international markets had bottomed, and that neutral-to-firm demand from phosphate producers would support pricing in the short-to-midterm timeframes.
Some speculated the 4Q contract’s conclusion at the low side of the anticipated $90-$105/lt CFR spread may represent a concession from suppliers in response to Tampa’s outsized third-quarter price. “Yes, Tampa is low, I think,” one source said. “(Buyers) probably got some money back for overpaying in 3Q for so long.”
Others disagreed, however, arguing the contract’s $90/lt landing spot represented an accurate reflection of US Gulf values, adjusted for reduced production levels from US phosphate producers. “The lack of consumption (is) … making the domestic market way more sloppy than the rest of the world,” noted one source.
Following Tampa lower, pricing on molten sulfur delivered to Houston was indicated at $75/lt CFR, off from $337/lt CFR in the prior period, while NOLA indications softened to $79/lt CFR from $341/lt CFR.
Refinery utilization fell in the US for the week ending Oct. 7, the Energy Information Administration (EIA) reported. Operable capacity was noted at 89.9% for the period, a decline from the prior week’s 91.3% rate, but above both the year-ago 86.7% and the 85.2% five-year average.
Daily crude inputs fell to an average 15.683 million barrels/d during the period, a 278,000 barrel/d decrease from the previous weeek’s15.961 million barrels/d rate.
US Imports:
July-August sulfur imports softened 8.1% year-over-year, to 526,027 st from 572,145 st. Imports were up 17.3% in August, however, to 262,311 st from the year-ago 223,697 st.
US Exports:
Sulfur exports were up 81.1% in August, to 123,931 st from the year-ago 68,441 st. Exports totaled 337,200 st for July-August, rising 178.3% from the year-ago 121,154 st.
US Gulf:
Price ideas on the Gulf sulfur market continued in the $90-$110/mt FOB range, unchanged from last report.
Brazil:
Sources continued to note last-done Brazil spot in the $138-$158/mt CFR range, unmoved from the prior report.Fourth-quarter contracts for delivery to Brazil were quoted at $119-$138/mt CFR.
Vancouver:
Sources continued to describe recent Vancouver pricing in the $95-$100/mt FOB range, unchanged from last week. Increases reported at China for the current week could prompt a lift at Vancouver in the next round of business, however.
Alberta:
Alberta sulfur price indications softened to (-)25-$25/mt FOB, falling from $25-$282/mt FOB in the prior report. The range included molten tons contracted into Tampa at the low side, while netbacks from prilled material selling internationally through the Vancouver export market established the high.
West Coast:
West Coast pricing was even with Vancouver at $95-$100/mt FOB, unchanged from one week earlier.Contracts for molten sulfur loading from West Coast refineries were reported settling in the $75-$79/lt FOB range for the fourth quarter, falling from $370-$385/lt FOB in 3Q.
China:
China import sulfur values reportedly firmed to the $145-$150/mt CFR range following the Oct. 1-7 Golden Week holiday, a $10/mt increase from $135-$140/mt CFR reported previously.
ADNOC:
Abu Dhabi National Oil Co. solid sulfur postings for October were heard at $103/mt FOB Ruwais, up $11/mt from $92/mt FOB reported for the prior month.
Qatar:
Qatar-loading prills were posted at $104/mt FOB Ras Laffan for loading in October, an increase of $15/mt from $89/mt FOB in September.