Indian sulphur prices jump on tender awards

20 February 2008 12:06  [Source: ICIS news]

LONDON (ICIS news)--Indian sulphur prices have jumped up by close to $80/tonne (€54/tonne) in tender awards held this week amid a tight market and strong demand, market sources said on Wednesday.

Indian state trading house MMTC Limited tendered on 18 February for three lots of granular sulphur for February-April delivery to India.

MMTC agreed one 15,000 tonne cargo with trader Swiss Singapore at $676.20/tonne CFR (cost and freight) for end February/early March shipment from the Middle East to Cochin. A second cargo for shipment to Cochin was not agreed.

MMTC also agreed a 15,000 tonne Iranian cargo with trader Havi at $679/tonne CFR for first half March shipment to Vizag.

Last business done in India was reported at around $600/tonne CFR.

The shipment to Cochin in Kerala is for fertilizer manufacturer Fertilizers and Chemicals Travancore Limited (FACT), while the delivery to Vizag in Andhra Pradesh in is for Steel Authority of India Limited (SAIL) for its Bokaro plant.

FACT said earlier this week that it would shut production at two of its plants at Cochin due to a sulphur shortage and that they would restart once towards the end of March once the cargo offered under the MMTC tender arrived.

Sulphur prices are strong due to strong demand from major market China and expectations of reduced availability from major producers in Canada, the Middle East and the Former Soviet Union (FSU) this year.

($1 = €0.68)

By: Rebecca Clarke
+44 20 8652 3214

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