Iranian sulphur prices down 4% on weak demand

10 December 2010 16:14  [Source: ICIS news]

LONDON (ICIS)--Iranian sulphur prices have dropped by nearly 4% following recent granular sulphur sales concluded at around $165/tonne (€125/tonne) on weak demand, market sources said on Friday.

Iranian prices were agreed on a free on board (FOB) basis. The latest indications were $6/tonne, or 3.5%, below last done business at $171/tonne FOB under Iran Gas Commercial Co’s (IGCC) 22 October sales tender.

Iran Petrochemical Commercial Co (IPCC) awarded its 17 November sulphur sales tender in the mid $160s/tonne FOB to an undisclosed buyer, sources said. The cargo of 30,000 tonnes has not yet been lifted from Bandar Imam Khomeini (BIK).

IGCC recently sold 25,000 tonnes of sulphur to trader Havi at $166/tonne FOB, for first half December loading from Assaluyeh, sources added.

Kharg Island Petrochemical Co’s (KHIPC) latest offer on the Iran Mercantile Exchange (IME) also reflected weak buying sentiment. Last week, the producer failed to attract any bids on the IME twice for 25,000 tonnes of sulphur, according to a company official.

The official said it had then offered the same amount of sulphur for first half December shipment under a private tender. The tender has not yet been awarded.

The drop in Iranian prices was largely due to weaker demand in major import markets, including China and India. While uncertainty over China’s phosphate fertilizers export tax regime for 2011 continued to put buying on hold, most major Indian buyers were already covered.

Additionally, Abu Dhabi National Oil Co (Adnoc) recently announced a decrease in its monthly sulphur lifting price to reflect softer prices. Its December sulphur price was set at $165/tonne FOB Ruwais, $10/tonne below the November price of $175/tonne FOB.

($1 = €0.76)

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By: Freda Gordon
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