NewsFlashAdnoc March sulphur up $40/t to record

03 March 2008 11:39  [Source: ICIS news]

LONDON (ICIS news)--Middle East sulphur producer Abu Dhabi National Oil Co (Adnoc) has set its March price to traders for shipments to India at a new record of $640/tonne (€422/tonne), up $40/tonne from February on continued strong demand and tight supply, the company said on Monday.

 

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

 

Prices have now risen a massive $586/tonne since the start of 2007, when Adnoc's January price was set at $54/tonne FOB Ruwais.

 

A price around this level had been widely expected following a spot sale from Iran last week at $642/tonne FOB. However, initial expectations had been for a price around $650/tonne FOB.

 

Although still a large step up in prices, market sources noted that the rate of increase had slowed. The March price was $40/tonne higher than the previous month, while February was $105/tonne higher than January and January $135/tonne higher than December.

 

Middle East sulphur prices have soared over the past couple of months due to strong 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 = €0.66)

By: Rebecca Clarke
+44 20 8652 3214

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