Tampa:
With prices in the US Gulf and Brazil reported holding largely steady in recent weeks, some players voiced speculation that an updated Tampa molten sulfur contract – if settled today – could roll over or firm slightly from the first-quarter’s $130/lt CFR level. Recent softening from international markets such as China could change that calculus, however, should the trend continue into April.
Refinery capacity utilization pressed higher for the week, the Energy Information Administration (EIA) reported. Refiners operated at a combined 88.2% of nationwide capacity for the period ending March 10, up 2.2 percentage points from 86.0% posted one week earlier. The rate lagged the year-ago 90.4% while topping the 85.7% five-year average. Gulf Coast refiners were “getting closer” to 90% utilization for the week, the EIA said, rising from 89.1% one week earlier.
Daily crude inputs firmed to an average 15.398 million barrels/d during the period, a 431,000 barrel/d increase from 14.967 million barrels/d reported previously.
US Imports:
Sulfur imports softened 18.8% in July-January, to 1.61 million st from the prior-year 1.98 million st. Imports were down 43.7% in January, to 188,424 st from the year-ago 334,411 st.
US Exports:
January sulfur exports moved 289.0% higher year-over-year, rising to 192,828 st from 49,570 st. July-January exports firmed 44.8%, to 1.27 million st from 878,317 st in the prior July-January.
US Gulf:
Genscape reported the March 14 restart of a sulfur recovery unit at Valero’s refinery in Houston, Texas. The unit had been offline since Feb. 5.
Recent US Gulf pricing was reported in a $125-$130/mt FOB range, above $120-$125/mt FOB for the prior week.
Brazil:
Players continued to describe the Brazil spot sulfur market in a wide $135-$160/mt CFR range. Tons sourced from Russia were said to trade at the low of the range.
First-quarter contracts were understood to range $172-$186/mt CFR. Minimal tonnage was reportedly acquired under contract pricing during the quarter.
Vancouver:
With China pricing on the decline, players expected Vancouver to soften in the next round of business. For the moment, however, concluded prices remained unchanged from the last-reported $120-$125/mt FOB.
Alberta:
Netbacks to sulfur suppliers in Alberta were indicated at $15-$60/mt FOB, unmoved from one week earlier. The range included prilled tons exported through Vancouver, as well as molten sulfur contracted into the US market.
West Coast:
West Coast prills were indicated at $120-$125/mt FOB, unchanged from the previous report.
Sources put molten contracts at $125-$135/lt FOB for the first quarter, above $75-$79/lt FOB in the previous quarter.
China:
Sources noted softening in the China spot import market, with prices reportedly falling into the $140s/mt CFR, off from $150-$158/mt CFR at last check.
ADNOC:
Abu Dhabi National Oil Co. (ADNOC) prills firmed to $134/mt FOB Ruwais for loading in March, sources said, a $7/mt increase from $127/mt FOB in February.
Qatar:
March-loaded tons were posted at $133/mt FOB Ras Laffan, sources said. Qatar pricing was reported at $124/mt FOB in February, a $9/mt difference.