China restricts Kazakh sulphur ahead of Olympics

30 April 2008 15:57  [Source: ICIS news]

LONDON (ICIS news)--Chinese authorities have taken measures to restrict the movement of sulphur and other dangerous goods into the country ahead of the Beijing Olympic Games later this year, market sources said on Wednesday.

The movement of rail cars carrying sulphur over the border from Kazakhstan has been banned from the start of May until the end of August over concerns for border security during the Olympic Games.

Kazakh authorities are understood to be in negotiations with Chinese customs officials to try and overturn the decision.

Additionally, movement of sulphur and other dangerous goods through the north China port of Qingdao has also been banned as the Olympic yachting regatta is being held there.

Sources also speculate that there may be a clampdown on movement of sulphur by rail internally in China, especially after rail safety issues have been brought to the forefront by recent accidents.

These measures were expected to be more of a logistical issue than have much of an impact on the sulphur market, sources said.

Kazakh sulphur can be shipped rather than railed, while sulphur usually discharged in Qingdao can be easily diverted to other nearby ports.

If movement of sulphur within the country is also restricted this could cause more of a problem, but it remains to be seen whether any measures are taken.

This comes as China has effectively banned phosphates exports due to a potential domestic shortfall in phosphate fertilizer supply of around 2m tonnes, but at the same time producers are looking to curtail output due to high sulphur costs that they are unable to pass on to domestic buyers

Around 30,000-50,000 tonnes/month of flaked, bagged sulphur moves from Kazakhstan to China by railcar. China imported 9.65m tonnes of sulphur in 2007, up from 8.81m tonnes in 2006.

By: Rebecca Clarke
+44 20 8652 3214

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