17 January 2007 23:23 [Source: ICIS news]
HOUSTON (ICIS news)--Mosaic has begun to settle its first-quarter 2007 liquid sulphur contracts in Tampa down by $5 at $54-56/long ton (€42-43/long ton), a company source said on Wednesday.
The initial settlement comes after buyers pushed for decreases of $6/long ton and $8/long ton. One long ton equals 1.016 tonnes.
Buyers contended the market was well supplied amid shipments of Canadian sulphur to the US and weak demand for the phosphate sector. Sulphur is used in the production of phosphate fertilizers.
Producers had targeted a smaller decrease of $2-3/long ton. They argued that demand was strong, and supply was tight amid refinery turnarounds.
Shell’s Deer Park refinery in Texas is in a turnaround until mid-February and producing at 25% of capacity, sources said.
PotashCorp, another sulphur buyer involved in the negotiations, said it has not yet settled its contracts.
No producers have yet confirmed settling. ExxonMobil, Shell and Valero are among the major suppliers involved in the negotiations.
($1 = €0.77)?xml:namespace>(Additional reporting by Rebecca Clarke in London)
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