Sulfur Market in Brief The granular sulfur prices for CFR delivery increased for the first time since October for new business. This increase may be considered in two different points of view: -This shall be a short term rebound, with current import demand being driven by higher domestic RMB/MT river port prices, although a week near term outlook for the finished fertilizer market will likely drive CFR prices back down. -With the Middle East prices holding flat to firm together with the very few available cargoes to be loaded in March, prices will hold this new level or maybe increase in the coming weeks with the March Trade continues. Active Forces in the Market -As Iranian loading cargoes usually indicate the low end of China’s granular price range, the increase in Iran’s price of FOB delivery is probably going to impact China’s prices of CFR delivery. -Prices soften in the Baltic and Black Seas as spot sales release new tons to muted end-users West of Suez. -With the flat to firm prices of Middle East in March, the market may be encouraged to be stabilized. Market Outlook in Next Month Studying historical data of early-April, prices tend to hold flat-to-soft trend. By observing current market indications, it is understood that the seasonal trend is not far. Asia China As earlier anticipated, the industry conference in Wuhan has not muted this week’s market totally. The offers are said to be thin and firm bids are also around USD 120s/MT CFR delivery based on a March loading cargo of ex-Middle east origin. The south is a whole different story. Some enquiries are available with the limited end-users who are not in a hurry to buy for now. There are two main approaches regarding this market: First, the market rebound may be short lived since this is the first time this year which real buying interest has been heard of. Second, expectations that the price level is to stay here, with the previous port prices on RMB basis are more expensive than imported products with the current exchange rate and regional FOB prices which are also supporting these CFR levels. Offers of crushed lump bulk cargoes are still thin. Jumbo bags are more widely available. Prices at around USD 110 CFR have been said to be realistic for lump cargoes by end-users at the moment. There are thin offers for bulk crushed lump cargoes whereas jumbo bags are widely available. The realistic prices about USD 110 for CFR delivery for lump cargoes are the ones by end-users currently. Domestic Market Stable port prices are likely to be encouraging stable Puguang prices, but market participants indicate that stocks at the site are high. Yangtze River port prices are continuing to hold at RMB 1,080/MT with a CFR equivalent of low-USD 130s/MT. Domestic crushed lump sulfur is priced around RMB 60-70/MT below granular prices. India Following conclusion of spot business for full size cargoes last week and discharge of previous purchases ongoing, no new business is heard in Indian Market. However, despite the current lack of buying interest, notable increase in consumption from companies which have the capacity to produce sulfuric acid has been noted because of the softening sulfur prices. Middle East The Kuwaiti state owned refiner and sulfur supplier KPC has set its March price at USD 106.5/MT FOB Kuwait. The Qatari state owned marketer, Muntajat has increased its monthly Qatar sulfur proce for the first time since October. The March price has been set at USD108/MT fob Ras Laffan/Mesaieed, an increase of USD 1/MT on the February price. Abu Dhabi state-owned sulfur producer Adnoc has rolled over its February official selling price of USD 108/MT FOB Ruwais to March. On the spot market, prices are held steady at USD 104-108/MT FOB on no new reported spot business and monthly lifting prices also holding within this range. Iran The Khark Island sales tender for 30,000 MTof granular sulfur is understood to have been awarded at USD 94/MT FOB Khark Island. A trader is heard to have secured the cargo and the award price increases fob Iran prices to USD 84-94/MT. Freight between Iran and China is currently indicated at USD 30-35/MT on a north/south port divide. Pars Oil and Gas Company, operator of the South Pars Phase 13 development project has said that the new liquefied petroleum gas (LPG) units have come on-stream in the onshore refinery of the phase. Africa A spot sale of around 40,000t of ex-FSU product has been concluded for shipment to a key North African end-user, and an FOB price in the mid-USD 80s/MT FOB has been attached. The cargo is for end-March loading. With freight assessed at USD 25-27/MT for shipment between the Baltic Sea and North Africa, a CFR price of USD110-112/MT is implied. For smaller end-users, prices are still placed in the low-to-mid-USD 120s/MT CFR. The North Africa price has been adjusted downwards to USD 105-125/MT CFR with the top-end supported by prices achievable for smaller buyers and the low-end assessed down notionally to reflect crushed lump pricing. Egypt Offers are still the same as previously concluded for CFR deliveries to Egypt with Saudi Arabian red sea loading cargoes. Smaller operators are currently inquiring for around 1,000-3,000t in bags or containers, and seeking sellers able to commit to these requirements each month. South Africa Issues at fertilizer major Foskor’s sulfur burner at Richards Bay are widely reported to be restraining the company’s import demand. It is unclear when the company will return to the spot market. Overall port inventories are discovered to be plentiful in South Africa, but some buyers are informally inquiring for imported material, if cargoes can be achieved at more favorable prices than current domestic ones. Tunisia Fertilizer producer Group Chimique Tunisien is currently operating at 50-60pc of capacity. There are two inquiries in the freight market for cargoes loading at Poti port, Georgia for shipment to Sfax or Gabes. One is for 5,500 MT and the other is for 6,000 MT, both with loading dates of 27 February to 9 March. Freight Market Summary After a peak towards the end of last week, Supramax fertilizer freight rates dipped this week. This occurred due to cargo volumes decline and the upcoming public holidays encourage owners to fix as quick. With the beginning of Easter/Mardi Gras/Carnival, several places in the Atlantic, Brazil specially, will be absent for public holidays for large portions of next week. This has made some vessel owners anxious to book cargoes prior to charterers stepping away from market towards the end of this week. Also many have quickly agreed on slightly lower rates. Fertilizer fixtures were limited during the week but Pacific Basin did pick up the Handysize Zhe Hai 2 from the Mideast Gulf to the east coast of India with a sulfur cargo.
