Adnoc’s Feb sulphur price up $105/t to new record

04 February 2008 09:46  [Source: ICIS news]

LONDON (ICIS news)--Middle East sulphur producer Abu Dhabi National Oil Co (Adnoc) has set its February price to traders for shipments to India at a new record of $600/tonne (€408/tonne), up $105/tonne from January on continued strong demand and tight supply, the company said on Monday.

 

News of a new spot sale out of Iran at the weekend at $620/tonne FOB had encouraged Adnoc to raise its price further.

 

The monthly price, agreed on an FOB (free on board) Ruwais basis, is largely viewed as an indicator of global sulphur price direction.

 

Prices have now risen a massive $546/tonne since the start of 2007, when Adnoc's January price was set at $54/tonne FOB Ruwais.

 

Traders had been expecting a price in the mid-$500s/tonne FOB following a recent spot sale out of Iran at $559/tonne FOB.

 

Adnoc itself said last week that the February price would be in line with the Iranian sale but the weekend deal caused the company to further up values.

 

Middle East sulphur prices have soared over the past couple of months due to increased demand from India and China over fears of a supply shortage in 2008.

 

Traders ship some 35,000-40,000 tonnes/month of Adnoc sulphur to buyers in India.

 

($1 = €0.68)

By: Rebecca Clarke
+44 20 8652 3214

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