Kuwait Petroleum agrees Q3 sulphur down $10-13/tonne

18 June 2009 14:52  [Source: ICIS news]

LONDON (ICIS news)--Middle East sulphur producer Kuwait Petroleum Corp (KPC) has agreed all of its third-quarter contracts at decreases of $10-13/tonne (€7-9/tonne) from the previous quarter due to a weaker market, a company official said on Thursday.

The official said that it had agreed third-quarter contracts for shipments to India, China and southeast Asia at $35-37/tonne FOB (free on board).

The producer reported agreeing contracts for April-June 2009 at $45-50/tonne FOB.

The drop in prices was attributed to a weaker sulphur market, with little demand outside of China and north Africa, and good supply, the KPC official said.

Price ideas have come down since China imposed a 17% import value-added tax (VAT) on sulphur, which is reported to add around $10/tonne to the price of sulphur.

Given the current state of the market, the KPC official said the prices it achieved were at a good level.

Other Middle East suppliers, such as Abu Dhabi National Oil Co (Adnoc) and Saudi Aramco, were also looking to target prices similar to KPC’s but had not yet agreed any contracts, market sources said. 

Suppliers had initially expected July-September 2009 prices to be similar to second-quarter levels, at around $40-50/tonne FOB.

($1 = €0.72)

Read Paul Hodges’ Chemicals and the Economy Blog
To discuss issues facing the chemical industry visit ICIS connect

By: Rebecca Clarke
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index