Sulfur Market in Brief
By the spot trading being relatively subdued this week, prices in east and west of Suez market have been kept flat. Stock levels in China were healthy and the consumer maintenance in India in progress, resulted in the inactivity of east of Suez. Moreover the Morocco and Brazil’s progressive contract negotiations have led to inactivity in the west.
Most of the activities in the last week’s market has been witnessed within Mediterranean, with the Greek products on offer and recent purchases from Turkish buyers firmed at low price levels.
Active Forces in the Market
Market Outlook in Next Month
The market outlook continues to be bearish with a weak end-product market hampering any potential gains in sulfur values. Also, the return of Russian sulfur to the North African supply chain will help satiate some of the region's appetite.
Asia
China
The Argus Asia Fertilizer conference has kept spot activity on a CFR basis low this week. There are some bids in the granular market in the low- USD 120s/MT CFR but these are understood to be for small parcels or part cargoes and are being made by domestic traders and market speculators.
No interest is heard for full size cargoes and end-users report being very comfortable at the moment. Inventories in the south are well stocked and one key south end-user is holding maintenance across May and the first-half of June. This, in hand with the continually weak sentiment in the phosphate market, is keeping buyers' appetites sated. But, there is also very little on offer and some sellers are understood to have sold forward for June delivery in some
instances.
When it comes to crushed lump sulfur, buying interest is lacking and availability is limited, particularly with current prices not allowing Turkmen sulfur to be railed the Iranian port of Bandar Abbas for onward shipment and sale to Chinese consumers. The sulfur CFR China price is held flat at USD 100-118/MT.
Domestic Market
Sinopec has increased the Puguang Wanzhou price by Yn20/MT to Yn980/MT but Dazhou tons are priced flat on the week at Yn910/MT. At the start of the week port tones were being offered as high as Yn1,030/MT to the market but at press time prices were indicated to be USD 1,010-Yn1,020/MT at port with a sale of 5,000MT having been made at the Yn1,020/MT level.
In the paper market, prices for June have moved down to Yn1,011/MT.
India
India’s import demand remains limited because of ongoing maintenances at various sulfur consuming companies in the country. Buying interest on a CFR India basis is not expected to
increase until next month. India’s MRPL has not yet awarded its export tender for 15,000 MT of granular sulfur. The tender closed on 15 April and the company expects an award in the coming week.
MRPL will undergo a month long maintenance, starting 15 April. Sulfur availability will not be impacted significantly from this, with the company's warehoused inventory currently healthy.
Domestic demand from the sulfuric acid sector is healthy but one supplier has noted some difficulty in distributing material to buyers because of licensing constraints for sulfur trucking operations.
Middle East
Second quarter contract prices are indicated to be ranging USD 80-104/MT fob. The bottom end is supported by netbacks of settlements so far heard with North Africa whilst the top end is supported by the confirmed contracts between UAE's Adnoc and traders.
Tons for Brazil are in the USD 80s/MT fob on netbacks so far. Some confirmations of settlements from North African consumers and Middle East producers are required for assessments to be made. In the spot market there are mixed reports of availability with some producers understood to have spot tones for May loading. But no new spot market business has been heard and confirmed concluded this week keeping prices steady at USD 100-105/MT fob.
Iran
IGCC issues April sulfur sales tender Iranian sulfur producer IGCC has returned to the spot market this week with a tender to sell 50,000 MT of granular sulfur, loading from Assaluyeh port in the second half of April.
The tender is scheduled to close on 15 April and the company expects offers to remain valid for no longer than 3-5 days after the closing date, but the exact date has not been confirmed. IGCC's term-contract sulfur negotiations are continuing. The company is discussing an appropriate formula price and expects to settle on a price by the end of the second quarter.
Iranian refiner and sulfur producer Khark Petrochemicals (KHIPC) has issued a tender to sell 30,000 MT — plus or minus 10pc — of granular sulfur. The cargo will load from Kharg Island port on 23-30 April. Freight between Iran and China is still estimated at USD 30-35/MT.
Qatar
State-owned marketer Muntajat is widely expected to issue its monthly 35,000 MT granular cargo to the spot market in the coming week.
UAE
The Adnoc Logistics and Services owned MV Butinah, which has a deadweight of 57,347 MT, was scheduled to arrive at Ruwais port for 10 April.
Africa
North Africa CFR second quarter contracts are currently priced in the range of USD 80-105/MT CFR. The top end prices are understood to be linked to cargoes for shipment to Tunisia's GCT but confirmation from the buy-side is pending. Tons of Middle East origin are supporting top end settlements so far. Russian sulfur is understood to be priced in the USD 90s/MT CFR for granular and in the USD 80s/MT CFR for crushed lumps. The bottom end is supported by product of Mediterranean origin. The range cannot be assessed yet with some supplier and consumer confirmations of contract conclusions not quite complete.
Egypt
Bids for granular sulfur are heard in the low-to-mid-USD 100s/MT CFR. Crushed lump bids are around USD 10/MT below this.
South Africa
A 30,000 MT cargo is understood to have discharged at Richards Bay port last week. The cargo is thought to be for fertilizer producer Foskor, but remains unconfirmed. At Foskor, strike action is widely understood to be underway, which is anticipated to result in company operations halted for up to two months. Freight between the Middle East to South Africa was last
assessed at USD 15-17/MT.
Freight Market Summary
Fertilizer freight rates ticked lower this week as charterers remained largely out of the market. Several fertilizer charterers in northern Europe were reportedly seeking vessels in the Baltic and northern Europe as milder weather and the receding winter ice made it easier to export from the region. But elsewhere in the Atlantic and Pacific basins, there were few cargoes under discussion and rates on most routes ticked lower.
Public holidays in India and the Middle East were a major factor in the shortage of available charterers with few ships booked to these regions. One charterer, Prime Transport, was briefly active and booked the Supramax Anya from the US Gulf to west India at USD 16,900/d while Norvic and Bainbridge Navigation booked Ultramaxes from Indonesia to India at around USD 8,000/d.
Few cargoes were booked in the Atlantic basin though EMR did pick up the Supramax Qu Shan Hai between the UK and Turkey at USD 8,500/d and Oldendorff booked the Nika from South America to Lebanon at USD 13,000/d.
Despite charterers seeking ships for fertilizer cargoes, fixtures were limited this week and charterers might be waiting for lower levels — likely next week — before concluding deals.
Report By: MohammadReza Barakchian
