Adnoc expects to raise sulphur price further in May

22 April 2008 15:49  [Source: ICIS news]

LONDON (ICIS news)--Major Middle East sulphur producer Abu Dhabi National Oil Co (Adnoc) is set to raise its May sulphur price to traders to around $700/tonne amid continued tight supply, a company official said on Tuesday.

The producer is currently gathering market information and watching with interest for an award under this week’s Iranian spot sales tender, whose award will give an indication of price levels.

However, the official said that a price not less than $700/tonne (€441/tonne) FOB (free on board) Ruwais was expected.

Adnoc set its April price to traders at $670/tonne FOB, up $30/tonne from the March price.

Middle East sulphur supply is currently extremely tight, with suppliers only being able to cover contract shipments and no spot availability. Some suppliers have been forced to supply minimum contract volumes and even delay some shipments.

Adnoc will set its May price at the start of next month.

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

($1 = €0.63)

By: Rebecca Clarke
+44 20 8652 3214

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