India sulphur prices to fall $80/t on weak demand

19 August 2008 12:10  [Source: ICIS news]

LONDON (ICIS news)--Indian sulphur prices are set to drop around $80/tonne on the back of subdued demand in India and China when public sector enterprise MMTC makes an award under its 11 August sulphur tender, a trader source said on Tuesday.

 

MMTC is in discussions with trader Swiss Singapore for the supply of 18,000 tonnes of sulphur for second half of August delivery to Vizag and is expected to make the award shortly.

 

The price under discussion is reported at $755/tonne CFR (cost and freight), down from last reported business in India at $835/tonne CFR.

 

MMTC initially received five offers under the 11 August tender from traders in the low-$780s/tonne to mid-$790s/tonne CFR but then requested that the traders resubmit offers. 

 

Sulphur prices have started to correct downwards due to a drop-off in demand, particularly from main market China, on the back of high prices, a virtual ban on phosphate fertilizer exports and subsequent high stock levels.

 

Indian buyers have also been reluctant to pay the high prices on offer for sulphur and demand is currently also seasonally weaker.

 

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By: Rebecca Clarke
+44 20 8652 3214

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