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)

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By: Rebecca Clarke
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