IFA '08: Middle East sellers target sulphur hikes

19 May 2008 14:34  [Source: ICIS news]

VIENNA (ICIS news)--Middle East sulphur producers are targeting large hikes for second half 2008 contracts in North Africa on the back of continued tight supply and strong demand, market players said on Monday.

 

One producer was looking for a number well in excess of $900/tonne (cost and freight), while another said it was seeking a price about $1,000/tonne CFR, both speaking on the sidelines of the 76th International Fertilizer Industry Association conference.

 

First half 2008 contracts with North African buyers were agreed at $420-445/tonne CFR.

 

Substantial increases were justified given the large rise in prices witnessed since the start of the year and expectations that prices would continue to rise for the rest of the year due to tight supply and strong demand, the producers said.

 

Additionally, North African buyers were achieving high prices for their phosphates, phosphoric acid and phosphate rock exports, they said.

 

Negotiations are expected to start between contract partners in mid/late June.

 

The IFA conference runs from 19-21 May.

 

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By: Rebecca Clarke
+44 20 8652 3214

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