Adnoc mulls further sulphur hike after record March

27 March 2008 15:36  [Source: ICIS news]

LONDON (ICIS news)--Major Middle East sulphur producer Abu Dhabi National Oil Co (Adnoc) is considering a further double-digit rise for its April sulphur price, although an exact number is yet to be decided, a company official said on Thursday.

 

Last week’s sale out of Iran at $666/tonne (€420/tonne) FOB (free on board) - $26/tonne above its March price - and a tight supply situation were expected to encourage Adnoc to raise its price to a new record level for April.

 

Adnoc’s March sulphur price was set at a record $640/tonne FOB, up $40/tonne from February.

 

Adnoc is gathering market information and is expected to announce its March price early next week, the official said.

 

Traders are expecting a further rise from Adnoc but note that it is already difficult to find buyers at the current $640/tonne FOB and that consumers in main markets India and China are strongly resisting higher prices.

 

Adnoc's monthly sulphur price is largely viewed as an indicator of global price direction.

 

($1 = €0.63)

By: Rebecca Clarke
+44 20 8652 3214

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