Tampa:
A firming international market relative to the start of Q4 has left the Tampa molten contract price at a discount to some markets, sources said, incentivizing suppliers in the US Gulf and Alberta to send as much product offshore as possible.
Domestic US demand was described as improving for the week, thanks in part to the recent completion of repairs at hurricane-damaged phosphate production and mining facilities in Florida, leading some to describe current domestic fundamentals as firm-to-balanced.
Rising logistics costs could influence 2023 contract discussions, some said. A looming logistics increase could also spur front-loaded buying ahead of 2023.
The fourth-quarter Tampa molten sulfur contract was valued at $90/lt CFR, falling from $352/lt CFR in the prior period.
Nationwide US refinery utilization moved lower for the week ending Oct. 21, the Energy Information Administration (EIA) noted, a third consecutive week of falling capacity levels stretching back to Oct. 7.
Utilization was reported at 88.9% for the week, down from 89.5% one week earlier, but ahead of both the year-ago 85.1% and the 84.6% five-year average.
Daily crude inputs also softened, moving to an average 15.436 million barrels/d for the period, falling from the week-ago 15.550 million barrels/d rate.
US Gulf:
Projected price increases at Brazil were likely to press the US Gulf market higher in the next round of business, with some pinpointing potential new values approaching the $130s/mt FOB. The market was most recently reported in the $100-$120/mt FOB range.
Brazil:
While no new trades were reported for the week, a purchase tender reportedly opened by CMOC will likely move the market higher in the next round of business, sources said. “Brazil tender with (CMOC) upcoming may test $170 delivered,” said one player. The market was most recently reported in the $139-$158/mt CFR range.
Contracts for delivery in the fourth quarter were quoted in the $119-$138/mt CFR range.
Vancouver:
Price increases in China pushed the Vancouver market up to $130-$135/st FOB for the week. Values were previously reported at $115-$120/mt FOB.
Alberta:
Alberta netbacks were indicated in the (-)25-$65/mt FOB range, firming from the prior week’s (-)25-$50/mt FOB level. Solid tons exported through the Vancouver market continued to occupy the top of the range, while molten material contracted into the US market set the low side.
A Suncor sulfur forming facility anticipated to start operations in the near-term will likely increase the share of tons headed offshore versus into the US market, some argued.
West Coast:
Solid sulfur loading from the West Coast was indicated in the $130-$135/mt FOB range, above the prior week’s $115-$120/mt FOB. Contracts for molten sulfur loading from West Coast refineries were reported in the $75-$79/lt FOB range for the fourth quarter, falling from $370-$385/lt FOB in the prior period.
China:
Granular sulfur delivered to China was reported firming to $170-$175/mt CFR for the week, a rise from the prior $150-$160/mt CFR level.
ADNOC:
Abu Dhabi National Oil Co. (ADNOC) solid sulfur offers were heard at $103/mt FOB Ruwais for October lifting, $11/mt above the $92/mt FOB level published for September.
Qatar:
Muntajat sulfur postings for October were reported at $104/mt FOB Ras Laffan. Sources noted the Qatar market at $89/mt FOB in September, a $15/mt difference.