US Q3 sulphur settlement looms at industry meet

30 July 2007 00:49  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--Buyers and sellers will seek to settle contentious third-quarter sulphur contract negotiations in the US at the Southwestern Fertilizer Conference (SWFC) that got underway on Sunday, sources said.

Market participants are weighing the effects of extraordinarily tight supply and soaring international values.

Buyers Mosaic and PotashCorp have already settled some contracts at a $17-20/long ton increase from the second-quarter prices of $60-62/long ton, according to global chemical market intelligence service ICIS pricing.

But producers and other industry observers said these settlements were limited in scope. The sellers are trying to boost prices by as much as $40/long ton.

Producers have contended that without sufficient increases, they can export their sulphur to more lucrative markets.

One source downplayed the international influence, though, saying that access to machines that prill liquid sulphur for export was limited.

Refinery issues and a relatively narrow gap between light sweet crude oil and the more sulphur-rich sour crudes have tightened sulphur supply this year, market sources said.

ExxonMobil, Shell and Valero are among the major suppliers involved in the negotiations. Mosaic and PotashCorp are consumers.

The SWFC ends on Tuesday.

By: Mark Quiner
+1 713 525 2653

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