30 April 2010 10:55 [Source: ICIS news]
LONDON (ICIS news)--Middle East sulphur producers are targeting South and North American buyers for second quarter shipments in order to offset weaker demand in China and the prolonged disagreement on contract prices with Chinese buyers, market sources said on Friday.
Producers have started concluding second quarter business in the $150s/tonne (€110s/tonne) FOB (free on board) with buyers in South and North America as well as ?xml:namespace>
An official at Abu Dhabi National Oil Co (Adnoc) said it had finalised all its second quarter sulphur availability in the $150s/tonne FOB for shipment to South and
Current Chinese price ideas are in the $150-160/tonne CFR (cost and freight) range, which given current freight indications around $40/tonne would imply a net back of around $110-120/tonne FOB.
Meanwhile, Saudi producer Aramco said it had concluded more second quarter contracts this week, with buyers in
The producer said availability which was not agreed under contracts would be diverted to
At the same time, Kuwait Petroleum Corp (KPC) said it had renewed some sulphur contracts for the second quarter at $150-160/tonne FOB, but had yet to conclude all its contracts as negotiations were progressing with remaining buyers in
An official at Qatari sulphur seller Tasweeq said it had begun concluding its contracts with buyers and traders from
Traders and Chinese buyers who were yet to agree second quarter contracts with Middle East producers said prices in the $150s/tonne FOB were too high for a market that has been severely impacted by bad weather conditions and lower downstream phosphates production.
There were also expectations that the South and North American markets could not replace the high volume Chinese market, particularly as Brazilian spot demand has recently slowed down due to a nearly full inventory. As a result, producers may have to alter their price ideas in order to secure some business to
($1 = €0.76)
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