01 April 2008 10:27 [Source: ICIS news]
LONDON (ICIS news)--Middle East sulphur producer Abu Dhabi National Oil Co’s (Adnoc) April price has been set $30/tonne above March’s to hit a record high of $670/tonne (€422/tonne), amid continued tight supply, a company source said on Tuesday.?xml:namespace>
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 $616/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 recent spot sale from ?xml:namespace>
Traders had been expecting a further rise from Adnoc but noted that it was already difficult to find buyers at the March price of $640/tonne FOB and that consumers in main markets India and China were strongly resisting higher prices.
Although still a large step up in prices, market sources noted that the rate of increase was slowing. The April price was $30/tonne higher than the previous month, while March was $40/tonne higher than February and February $105/tonne higher than January.
It was also noted that although the dollar price had risen by $30/tonne, on a euro basis the price was the same as in March due to the strengthening of the euro against the dollar.
Middle East sulphur prices have climbed over the past few months due to strong demand from
Traders ship some 35,000-40,000 tonnes/month of Adnoc sulphur to buyers in
($1 = €0.63)
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