Sulphur price hikes continue in the Middle East above $140/tonne

18 August 2010 16:04  [Source: ICIS news]

LONDON (ICIS)--Sulphur prices in the Middle East have risen up by over $10/tonne (€7.80/tonne) following the latest spot sales by Abu Dhabi National Oil Co (Adnoc) and Saudi Aramco, as market demand remained strong, market sources said on Wednesday.

Adnoc was reported to have sold a sulphur cargo at more than $140/tonne FOB (free on board) for September loading, according to market sources. The amount of sulphur involved was not disclosed, but Adnoc had previously indicated that it had less than 30,000 tonnes of sulphur to offer in the spot market.

Meanwhile, an Aramco official confirmed that 35,000 tonnes of sulphur was awarded in the high $130s/tonne FOB to a customer for September loading from Jubail, under its 14 August sales tender.

Both sales have surpassed last week’s Kuwait Petroleum Corp (KPC) sulphur sales tender, awarded at $125-130/tonne FOB, for September shipment. The new high was also above Adnoc’s August sulphur lifting price, set at $110/tonne FOB.

Demand for sulphur has picked up in recent weeks, on the back of a strong diammonium phosphate (DAP) market, tight sulphur supply in the Middle East region, anticipated logistic problems over winter in Russia and Canada, and surging crop prices following Russia's and Ukraine’s announcements on grain export cuts.

The strong FOB prices in the Middle East have also spurred confidence in southeast Asia.

Pakistani sulphuric acid producer, International Petrochemicals, sold a 20,000 tonne cargo of Middle East sulphur to Thailand at $165/tonne CFR (cost and freight) Bangkok, the company official said.

Sulphur is a raw material for sulphuric acid, and hence phosphate fertilizer production.

($1 = €0.78)

For more on sulphur visit ICIS pricing fertilizers
To discuss issues facing the chemical industry visit ICIS connect

By: Freda Gordon
44 208 652 3214

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