Amoot Iranian Trading Company

Many marketers are seeking for a clear guidance and market direction, as in the global market the buying trade price is at a minimum. The trade continues to be all but absent in big markets of West of Suez, having only small lots been transacted in North Africa and the Mediterranean.

In the east, China is still supporting some trade but this is diminishing as offers with decrease with sellers having sold their cargo forward and the monthly price announcements from Middle East produces awaited in the next week. The announcements of May selling prices is hoped to provide some guidance on the market for the near term.

It is expected that the next serious purchase to be from India, as end users coming out of their April plant turn-around s.

• The Mediterranean FOB prices fall progressively while most other markets stay stable as Mediterranean prices move at the traditional lag to bigger sulphur markets.
• When buyers do finally return to the market, they may be forced to pay up as suppliers have forward sold their May and even some June loaders..
• Sulphur supplier IGCC has discarded its 60,000t granular sales tender and issued another for 50,000t after receiving bids below its target price.

By approaching the end of the second quarter, marketers are looking towards the state of finished fertilizer market due to its being the key fundamental influencing factor for the majority of the year so far. Prices in the fertilizer market will probably influence discussions of the third quarter starting the end of second quarter.

China

Passing another slow and quiet week, sulfur prices have often drifted sideways. A traders sold a May loading cargo with Middle East origin to China buyer in the high –USD110s/MT CFR. Moreover, an international trader has sold an 8,000 MT lot of Vietnamese sulfur in the low -120s/MT and a south end user secured a small cargo at USD 120/MT CFR. Both of the foresaid lots are too small to be considered for assessment.

There also has an unconfirmed report been received for an end user purchase of a full size cargo in the low –USD 120 per MT CFR.

On the bid/offer front, prices have been spanning high –USD110s CFR to mid –USD120 per MT CFR but it is consistently reported that the number of bids and offers are minimal with end-users still largely covered and suppliers either sold for near-term loaders or awaiting May lifting price announcements before making fresh offers.

There is also an awareness that several granular cargoes purchased earlier, largely in the high-USD110s/MT CFR, will be arriving soon. This is limiting the desire to accept much higher values and has capped price gains this week. Most of the albeit limited granular buying interest is focused on Iranian loading cargoes as prices are still available below USD120/MT CFR.

For crushed lumps, prices are placed around USD110/MT CFR at a maximum, and a major south end-user purchased a mixed cargo last week at around USD117/MT CFR for May shipment.

Domestic Market

Sinopec has kept prices flat at Puguang this week. Dazhou tones continue to be priced at Yn860/MT and Wanzhou tones are at Yn980/t for a second week. Production is at a stable level of 5,000MT/d at Puguang. At port, offers were still heard just over Yn1,000/MT at the start of the week but buying interest was minimal. Prices slipped to Yn985-Yn995/t by press time, reflecting the low/mid-USD120s/MT CFR.

The paper market is in contango with May at Yn992/MT, June around Yn1,008/MT and July at Yn1,015/MT. Official port stock figures are at 1.24mn MT down by around 80,000t on the week. The last time inventories fell below 1.3mn t was in late-January as the market approached the New Year holiday and had been through a very limited period of spot buying. By press time it was understood that stocks had fallen below 1.2mn t.

India

In the spot market, there is a report of a sale having been made in the high USD 100s/MT however, as the trade has not been confirmed it cannot be included for assessment.

Iran

This week the FOB prices are still range-bound at USD 78-88 per MT, no business being occurred. The granular sulphur sales tender from supplier IGCC for 60,000 MT, which closed on 22 April, has now been scrapped. A new sales tender has been issued for 50,000 MT of granular, which will close 30 April and provide the next clear test for the Iran fob price.

Regarding logistics, the US' announced termination of Iran sanctions waivers this week is understood to be making it more difficult for suppliers to secure vessels to charter from Iranian ports. Freight price indications from Iran to south China are now heard to have increased to the mid-USD30s/MT.

Qatar

In the freight market there is an inquiry for 35,000 MT loading Ras Laffan 3-9 May for shipment to Zhenjiang, China. Trader BGN is loading the MV Alrayan with 50,000 MT at Ras Laffan for shipment to China against an old spot sale.

UAE

The MV Bunun Wisdom has been loaded with 40,000 MT at Ruwais port by trader BGN and is expected to arrive at Gresik, Indonesia on 1 May. This is a contract cargo. The company is also loading the MV Kiran Marmara with 50,000 MT for shipment to Aqaba, Jordan, against contract.

 

The North Africa CFR price has been assessed down to USD 95-110/MT as firm bids and offers continue to slide in the region. The lack of buying interest from key consumers is driving down prices in the region..

Egypt

Concluded business in the country is at low-USD 90s/MT CFR for crushed lumps and low-USD100s/MT CFR for granular sulphur. Three cargoes have been sold in to the country at this range across the week. All lots were under 10,000MT.

Libya
Sulphur supplier NOC has awarded its spot tender in the mid- $70s/t fob Mellitah and the cargoes are likely to discharge in Egypt.Trader BGN is currently loading 8,000t on the MV Queen
 Zein for shipment to Egypt, against an old purchase.

Morocco

Morocco has imported 1.08mn t in the year to February, up by 21pc on the year, as capacity expansion at fertilizer producer OCP’s Jorf Lasfar phosphates hub continues to boost sulphur import demand. Argus data shows 697,000t were delivered to Jorf Lasfar port alone in the reported period.
 Middle East origin supply now dominates Morocco's imports, accounting for 70pc of the overall volume, from just 43pc last year. This reflects UAE state-owned Adnoc’s longterm supply agreement with OCP, which was signed in 2018. UAE imports totalled 536,000t, up by 49pc. Saudi Arabian imports also increased to 227,000t, up from just 59,000t on the year.

Sentiment shifted in the Supramax freight markets this week despite several fixtures below previous levels as charterers made a rush of new cargoes available on Tuesday and Wednesday. The move prompted US Gulf transatlantic voyages to northern Europe to USD12,500/d while east  coast of South American to Mediterranean cargoes were booked at USD14,000/d on Supramaxes and USD17,000/d on Ultramaxes.

Upcoming public holidays in China and Japan for most of next week could dampen any new activity. Fronthaul voyages to India were priced higher at USD19,000/d, at a slight premium over Asia-Pacific bookings because the vessel might have to sail a significant distance for its next cargo.

In the fertilizer market, Seacoast put the Poseidon S on subjects at USD 7,000/d from the Mideast Gulf to the east coast of India, loading as soon as possible. 

Report By: Parya AhmadPour