Tampa: Second in hot topics among sulfur industry players behind the third-quarter price of molten sulfur at Tampa – previously announced at $136/lt DEL – was Mosaic Co.’s solid sulfur melting facility, set for construction at New Wales, Fla., in 2015.
Though Mosaic has so far declined to elaborate on its plan for the 1 million st/y plant, the facility was widely assumed to provide a hedge against future domestic supply volatility by allowing Mosaic the means to secure alternatively sourced product as needed, as well as provide the company with added leverage in future sulfur contract negotiations.
Mosaic representatives allowed that sourcing efforts had already begun for the plant, and solid material was expected to begin arriving for processing in June 2015.
Industry watchers believed, however, that Mosaic has already been importing solid sulfur into Galveston, Texas, from international sources, then melting and shipping the molten product via standard channels across the Gulf.
Sources said this internationally sourced product was acquired at a substantial premium to the domestic market, with the added costs justified by a perceived guarantee against possible supply shortages.
Refinery utilization rates for the two most recent reporting periods registered their highest levels since 2006, according to the U.S. Energy Information Administration (USEIA). A new USEIA report said refineries processed more barrels of crude oil for the weeks ending July 11 and July 18 than at any time since the government agency began keeping weekly records in 1990.
Increased domestic capacity, coupled with higher utilization rates, was responsible for the record outputs, even though the number of operating U.S. refineries fell from 254 in 1982 to 139 in 2013. Despite the decline in total facilities, combined production capacity actually rose to 17.7 million barrels per day from 16.1 million barrels per day in 1982.
Refinery operating rates fell slightly for the week ending July 25, the USEIA said. Production capacity was listed at 93.5 percent for the week, down 0.3 percent from 93.8 percent in the previous reporting period. The rate was higher than the 91.3 percent posted for the same week in 2013, and also beat the five-year average of 91.2 percent.
The price of molten sulfur delivered to Tampa was $136/lt for the third quarter.
U.S. Gulf: The price of sulfur exported from the Gulf of Mexico was static at $140-$145/mt FOB.
Vancouver: Sources estimated that the recent Chinese typhoons damaged or destroyed approximately 260,000 mt of sulfur, further restricting already tight supplies and lending additional price support to a market already said to be outpacing other international markets.
Spot prices at Vancouver were quoted in a range of $140-$170/mt, unchanged from the previous period. Third-quarter contract levels continued to trickle in, with preliminary figures pointing toward a range of $140-$160/mt FOB.
Following its most recent bout of suspended production stemming from hydrogen sulfide gas-related issues, the Alberta-based Syncrude 21 mega-refinery was working to resume loading by Aug. 3 at the latest.
The price of Alberta sulfur was unchanged at (-)$20-$80/mt.
West Coast: Sulfur sold from the West Coast was quoted in a range of $135-$145/mt FOB.
Benelux: Benelux sulfur traded in a range of $158-$172/mt for the third quarter.
ADNOC: The July price of ADNOC sulfur was $170/mt, though an updated price for August was expected soon.