India sulphur drops below $700/t on Paradeep buy

21 August 2008 14:01  [Source: ICIS news]

LONDON (ICIS news)--Indian sulphur prices have dropped a further $75/tonne (€51/tonne) following a purchase by Paradeep Phosphate Ltd (PPL) amid weak global demand, trader sources said on Thursday.

PPL issued a buy tender on 19 August for 30,000-35,000 tonnes of sulphur for third week October delivery to Paradeep.

The tender attracted around five offers and an award was reportedly made to Swiss Singapore at $680/tonne CFR (cost and freight).

This price was down from the $755/tonne CFR paid by MMTC earlier this week for a cargo from Swiss Singapore, although this was for August delivery rather than October.

Traders said the purchase by PPL showed that prices were expected to fall over the coming months.

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 was also seasonally weaker.

Offers for Middle East and Russian tonnage were now reported below $675/tonne CFR.

Large buyer Indian Farmers Fertilizer Cooperative (IFFCO) was reported to be looking for an October cargo and its price ideas are around $600/tonne CFR.

($1 = €0.68)

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By: Rebecca Clarke
+44 20 8652 3214

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