Tampa: Mosaic and PotashCorp settled with their sulfur suppliers on a price for the second quarter, the companies announced separately, agreeing to pay $133/lt for molten sulfur delivered to Tampa. The new price represents a $23/lt DEL increase over the first-quarter price of $110/lt DEL.
The speed of the settlement took many observers by surprise, as many assumed phosphate producers might choose to delay negotiations closer to the traditional third-quarter lull in phosphate and sulfur prices to leverage a better deal.
Speculation on the causes of the swift settlement varied widely. Some said sulfur suppliers weren’t sold on the strength of the phosphate market and sought to capitalize before prices fell. Others said a pronounced drop in sulfur prices internationally, though still well above the Tampa price, translated to unstable prices domestically. Still others said sulfur suppliers’ first offer was low and was snapped up right away.
Alternatively, some sources believed conditions were simply returning to a more stable and predictable cycle. One source said protracted quarterly sulfur negotiations were a relatively recent development, and had only become the norm in the last several quarters.
Regardless of why, the rapid timing of the settlement lent credence to the notion that buyers and sellers were “more or less on the same page,” as one source said.
Operating rates at U.S. refineries fell slightly for the week ending April 4, according to the U.S. Energy Information Administration, dipping to 87.5 percent from the previous week’s 87.7 percent. The operating rate was ahead of the 86.8 percent posted for the same week of 2013, and also ahead of the five-year average of 84.8 percent.
U.S. Gulf: The price of prilled sulfur in the Gulf was pegged at $150-$160/mt FOB, unchanged from the previous week.
Vancouver: The spot price of sulfur at Vancouver was quoted in a range of $140-$180/mt FOB.
Sulfur delivered from Alberta rose to (-)$30-(+)$60/mt, based on the new Tampa price.
West Coast: West Coast sulfur was said to trade in a range of $145-$160/mt FOB, down from the previous range of $150-$165/mt FOB.
Benelux: Sources said negotiations for the second-quarter Benelux price had not concluded as of April 10, and the price remained at $130-$144/mt.
ADNOC: The price of sulfur from ADNOC was $170/mt for April, a decrease from the March price of $180/mt.