China Q4 sulphur to plunge as buyers bid at $100/t

09 October 2008 16:13  [Source: ICIS news]

LONDON (ICIS news)--Chinese sulphur prices could plummet by up to $680/tonne (€496/tonne) or 87% in the fourth quarter on the back of lacklustre demand and falling global prices, market sources said on Thursday.

Chinese buyers are reported to be bidding Canadian suppliers at $100/tonne CFR (cost and freight) for fourth-quarter deliveries, while Canadian suppliers are heard offering at $200/tonne CFR.

Expectations are that a compromise figure will be found. However, Chinese buyers will be encouraged by reports of a sale into India at $115/tonne CFR. 

Limited quantities were agreed for third-quarter shipment at $750-780/tonne CFR. 

Price ideas in China have plunged on the back of weak demand due to restrictions on phosphate exports.

Port sulphur inventories are reported at around 800-850,000 tonnes and phosphates inventory levels at ports are around half a million tonnes.

Sulphur imports dropped to just 322,000 tonnes in August, down more than 500,000 tonnes from the previous month. 

Year-to-date imports were down 8% from January-August 2007 levels at 6.045m tonnes.

($1 = €0.73)

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By: Rebecca Clarke
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