22 January 2010 16:54 [Source: ICIS news]
LONDON (ICIS news)--Major US phosphates producer Mosaic has adjusted initial first quarter liquid sulphur contracts up by $20/long ton (€14/long ton) on the back of the rapid rise in international sulphur prices alongside continued tight supply and strong demand, the company said on Friday.
Mosaic agreed initial first quarter contracts up $40/long ton taking prices to $70/long ton CFR (cost and freight) ?xml:namespace>
However, the company said that its price ideas had changed and as such initial settlements were adjusted and all contracts were agreed at plus $60/long ton.
“During the course of first quarter negotiations, Mosaic has modified its price ideas, adjusted previous settlements and has now closed with all suppliers we negotiate with at a $60/long ton increase,” said a company official.
Prices are now at $90/long ton CFR
Fourth-quarter 2009 contracts were agreed at $30/long ton CFR, up $20/long ton from July-September levels.
Contracts had been expected to rise significantly for January-March 2010 due to reduced refinery operating rates in the US Gulf, which tightened sulphur supply.
At the same time, demand from the phosphates industry was expected to be strong due to good export demand and an anticipated strong domestic spring season.
Additionally, international sulphur prices have risen rapidly over the past month.
($1 = €0.71)
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