Tampa: Speculation on the third-quarter price of molten sulfur delivered to Tampa began to gain traction last week, with most sources expecting a rollover from the second-quarter contract price of $132/lt.
After a blistering run-up in the China spot market earlier in the year, international prices have largely held flat throughout the second quarter. Prices from producers in the Middle East have inched a few dollars higher in July, though many attribute those changes to fluctuations in the currency markets rather than a shift in sulfur market fundamentals.
Third-quarter negotiations had not begun as of June 18, sources said.
Domestic refinery capacity fell for the week ending June 12, according to the U.S. Energy Information Administration (EIA), sinking to 93.1 percent. Despite the decrease, a 1.5 percent dip from the 94.6 percent utilization cited in the previous report, the numbers represent the highest second-week June total since 96.7 percent utilization was recorded on June 10, 2005.
Current capacity was higher than both the year-ago 87.1 percent and the five-year average of 89.5.
Average daily crude inputs fell to 16.282 million barrels/d, a decrease of 294,000 barrels/d from 16.576 million barrels/d at last check.
U.S. Gulf: Price ideas in the Gulf offshore market were in the $125-$135/mt FOB range, unchanged from last report.
Vancouver: Major players in Vancouver, who were awaiting direction from either the China spot market or a third-quarter settlement at Tampa, called prices flat at $128-$138/mt FOB last week.
Sources said Alberta refiner Syncrude 21 resumed loading last week after an unplanned shutdown that halted production earlier in the month. The facility briefly restarted in late May following a planned 45-day turnaround, but quickly froze production when issues with off-spec hydrogen sulfide resurfaced at load-out.
Canadian Natural Resources Ltd. remained on turnaround last week.
Alberta netbacks were called (-)$10-$85/mt.
West Coast: Prilled sulfur sold from the West Coast continued to be quoted in the $125-$130/st FOB range. Second-quarter molten contracts fell in a range of $90-$130/lt FOB.
ADNOC: June offers from the Abu Dhabi National Oil Co. were quoted at $145/mt FOB Ruwais, $5/mt higher than the May price of $140/mt FOB.
Aramco: Saudi Aramco’s July price of formed sulfur was $144/mt FOB Jubail, a $2/mt increase from June levels of $142/mt FOB.
Aramco plans to close its 88,000 barrel/d Jeddah refinery before the end of 2016, according to reports. Eroding profit margins resulting from prolonged weakness in the crude market were cited as the reason for the planned closure.
Tasweeq: The June price of Qatar sulfur was listed as $141/mt FOB.