China Q2 sulphur contract prices set to jump

14 March 2008 15:41  [Source: ICIS news]

LONDON (ICIS news)--Second-quarter sulphur contract prices in China are set to jump on the back of higher spot values in a globally tight market, market sources said on Friday.

 

Although contract discussions are yet to begin in earnest, Middle East producers have indicated that they are looking for significant price increases of $150-200/tonne (€96-128/tonne) on first-quarter levels.

 

Such an increase would take prices to around $600-650/tonne FOB (free on board) Middle East. First-quarter prices were agreed at $440-450/tonne FOB

 

Freight from the Middle East to China is indicated at $40-45/tonne, suggesting delivered prices of $680-695/tonne CFR (cost and freight) for the second quarter.

 

A hike of this magnitude would bring prices into line with current spot values, sources said. Abu Dhabi National Oil Company (Adnoc) set its March sulphur price at $640/tonne FOB, while a recent spot sale out of Iran was concluded at $642/tonne FOB.

 

Spot prices have jumped so far this year on the back of strong demand from the fertilizer sector and reduced output from the Middle East and other major supply regions Canada and the Former Soviet Union this year.

 

($1 = €0.64)


By: Rebecca Clarke
+44 20 8652 3214



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