Aramco raises sulphur prices by $500/tonne

08 April 2008 14:07  [Source: ICIS news]

LONDON (ICIS news)--Sulphur producer Saudi Aramco has increased prices for April-September 2008 shipments to Brazil by over $500/tonne (€320/tonne) as a result of global price increases, a company official said on Tuesday.

 

The major Middle Eastern producer has concluded contracts with Brazilian fertilizer producer Fosfertil at $650/tonne FOB (free on board) Jubail for shipments made in the second and third quarters, up from $135/tonne FOB for shipments made in the October 2007-March 2008 period.

 

Freight from Jubail to Brazil is estimated at around $60/tonne which indicates delivered prices of around $710/tonne CFR (cost and freight).

 

Fosfertil has also confirmed that prices had been agreed but did not reveal the price level.

 

Sulphur prices have jumped over the past six months on the back of strong demand from China and India and also from phosphate fertilizer producers, while at the same time supply has been short.

 

Brazilian buyers had been expecting substantially higher prices for April-September 2008 given the rises in international numbers since their contracts were last agreed, but were attempting to limit the extent of the hike.

 

However, Aramco had pointed out that if the Brazilians did not agree to their price offers, there were plenty of other outlets for the sulphur.

 

Canadian suppliers shipping to Brazil have not yet agreed prices for April-September, but are reportedly targeting a price close to $700/tonne CFR.

 

($1=€0.64)

By: Rebecca Clarke
+44 20 8652 3214

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