KPC awards sulphur sales tender at around $130/tonne FOB

12 May 2010 18:03  [Source: ICIS news]

LONDON (ICIS news)--Kuwait Petroleum Corporation (KPC) has awarded its 12 May sulphur sales tender at a price “similar to the current market level” amid a weak spot market, a company official said on Wednesday.

The Kuwaiti sulphur producer awarded 25-30,000 tonnes of sulphur to a trader at around $130/tonne (€103/tonne) FOB (free on board).

The company official said the cargo, for 4-6 June shipment from Shuaiba, will be shipped to the east. Freight rates to India were indicated at $28-33/tonne, and $34-35/tonne to China.

The spot cargo had come from KPC’s uncommitted sulphur availability for the second quarter. The producer concluded two-thirds of its contracts in the range of $150-160/tonne FOB.

KPC received six bids for this sales tender, of which the official commented: “Although the market remains quiet, we expected better and more offers.”

A weaker spot market has been evident in Asia. Last done business out of India was by domestic producer Reliance - an award to trader Transammonia under its 5 May sales tender at $135/tonne FOB, down from its last sale which was reported in the mid-$140s/tonne FOB.

Traders commented that Chinese spot buyers were rejecting offers above $150-155/tonne CFR (cost and freight).

($1 = €0.79)

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By: Freda Gordon
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