China 2009 sulphur prices may improve - consultant

03 November 2008 14:17  [Source: ICIS news]

ROME (ICIS news)--Chinese sulphur prices may rebound moderately in early 2009 on a pick-up in demand, a consultant said at the Sulphur 2008 conference on Monday.

A projected fall in domestic diammonium phosphate (DAP) prices and buying for the spring season could trigger an increase in phosphate fertilizer demand and, consequently, demand for sulphur, said Isaac Zhao, a consultant with British Sulphur Consultants.

Although sulphur prices may see a slight rebound, Zhao said he put the ceiling at around $100/tonne CFR (cost and freight).

In addition, added Zhao, expectations for the New Year were that the Chinese government would change its policy towards phosphate fertilizer exports, which are currently subject to a 120% export tax until the end of the year.

Zhao said that current thought was that Beijing might put an export quota in place for 2009.

The sulphur market and prices were expected to remain weak until the end of this year due to large stock levels, weak domestic phosphate fertilizer demand and the inability to export phosphates, said Zhao.

Last business in China was reported at $50-70/tonne CFR, down from the peak earlier this year of around $800/tonne CFR.

The Sulphur 2008 conference runs from 2-8 November in Rome, Italy.

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By: Rebecca Clarke
+44 20 8652 3214

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