Iranian sulphur hits new high following spot sale

21 September 2007 11:50  [Source: ICIS news]

LONDON (ICIS news)--Iranian sulphur prices have hit a new record high following a spot sale at $215/tonne (€153/tonne) a $10/tonne, rise market sources said on Friday.

 

The higher price came amid continued tight supply and strong demand from India.

 

Kharg Island Petrochemical Co sold 25,000 tonnes of granular sulphur to trader Havi at €155/tonne FOB (free on board) equivalent to $215/tonne for late September or early October lifting from Kharg Island.

 

This business followed a sale a couple of weeks ago by Iran Petrochemical Commercial Co (IPCC) at $205/tonne FOB for end September lifting from Bandar Imam Khomeini.

 

Iranian sulphur prices have risen from the mid-$50s/tonne FOB since the start of 2007, according to global chemicals market intelligence service ICIS pricing.

 

Traders commented, however, that it remained to be seen where this cargo would be shipped to, with the price deemed too high for either the Indian or Chinese markets.

 

Although there is outstanding demand in India, buyers are not yet ready to pay $240/tonne CFR (cost and freight) and above for sulphur.

 

With freight Iran-India indicated in the mid/high-$20s/tonne, the price would land above the $240/tonne mark.

 

Meanwhile, Chinese buyers are unwilling to pay more than $210/tonne for sulphur at present, making shipments from the Middle East unworkable at current levels.

 

($1 = €0.71)

By: Rebecca Clarke
+44 20 8652 3214

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