UpdateAdnoc cuts Oct sulphur by 66% to $200/t

13 October 2008 12:23  [Source: ICIS news]

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LONDON (ICIS news)--Abu Dhabi National Oil Co (Adnoc) has dropped its sulphur lifting price for October by 66%, or $380/tonne, amid weak demand from key markets China and India and falling international prices, a company official said on Monday.

 

The price was set at $200/tonne FOB (free on board) Ruwais, down from the September price of $580/tonne FOB, added the official. 

 

This number is down from a peak of $820/tonne FOB in July this year.

 

The October price is also still $295/tonne lower than in January this year and is $20/tonne below the same month of 2007.

 

A large drop had been expected given the current state of the sulphur market. Initial trader indications had been for a drop to around $400/tonne FOB, however, since then prices on the international market dropped off significantly.  

 

Bids around $100/tonne CFR (cost and freight) were reported in China last week, while business in India was concluded at $115/tonne CFR.  

 

The setting of the October price had been delayed on uncertainty in the market and also due to Eid holidays and an industry conference. 

 

The Adnoc monthly price is largely viewed as an indicator of global price direction.

 

($1 = €0.74)

 

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By: Rebecca Clarke
+44 20 8652 3214

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