Tampa: Although negotiations for first quarter pricing for molten sulfur for Tampa began much earlier than normal, it may be near the end of January before a deal is finally done. It could even happen sometime in February.
Supply, which had been matched relatively closely to demand, fell out of kilter after Mosaic, PhosAgro, and OCP decided to reduce production. That was a game-changer. Previously, speculation was a for drop of about $20/lt, but sources said phosphate producers were seeking as much as $60/lt as a result of the reduction in phosphate production. More than likely, the price will be somewhere in the middle – $30-$40/lt – unless something else pops up and becomes part of the formula.
Refinery capacity operating rates last week increased 0.8 percent, from 84.2 percent to 85 percent.
Vancouver: Spot prices at Vancouver were running right around $180/mt FOB. A source said the Tampa molten price would have an impact at Vancouver.