Iran sulphur sold on renewed Chinese demand

19 November 2008 16:24  [Source: ICIS news]

LONDON (ICIS news)--Iranian sulphur has been sold after private negotiations on renewed Chinese buying interest, but the price was well below previous levels, market sources said on Wednesday.

Iran Petrochemical Commercial Co (IPCC) said it had sold 80,000 tonnes of granular sulphur in two parcels to two traders for November/December shipment from Bandar Imam Khomeini (BIK) at $45-50/tonne (€36-40/tonne) free on board (FOB).

One parcel of 50,000 tonnes was being shipped in three lots to China. Two of the lots have already been shipped, while the third is waiting to load.

The second parcel of 30,000 tonnes will be shipped to China or India at the end of November or early-December.

IPCC had previously not sold any sulphur since September due to weak market conditions, primarily because major buyer China stepped out of the market.

Instead, the producer has been putting sulphur into domestic sulphuric acid production, while watching the international sulphur market for any pick-up in demand.

IPCC’s last done business was at $350/tonne FOB BIK for September shipment to Turkey.

However, last done business out of Iran was in October following a sale by Kharg Island Petrochemical Co (KHPC) at $100/tonne FOB.

In the past few weeks, enquiries for sulphur from China have picked up.

This was due to the anticipated and subsequent announcment by the Chinese government that it was introducing a new scheme for phosphate-fertilizer exports, which brought a reduction in the export tax.

IPCC said it would continue to watch the market. If the level of enquiries were sustained, it said, the company might issue a sales tender next month.

($1 = €0.79)

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By: Rebecca Clarke
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