US Mosaic Q1 liquid sulphur contracts up $25/long ton

24 January 2011 10:17  [Source: ICIS news]

LONDON (ICIS)--US phosphate fertilizer producer Mosaic has agreed all first-quarter liquid sulphur contracts at $185/long ton (€135/long ton), a company source said on Monday.

Mosaic concluded quarterly contracts with all its suppliers on a cost and freight (CFR) basis late on 21 January, the source added.

The price was $25/long ton higher than the fourth-quarter 2010 price of $160/long ton CFR, the source said.

The fourth-quarter level was itself a $65/long ton increase from the contract price in the third quarter of 2010.

The latest increase fell within initial expectations of a $25-30/long ton rise, as market conditions remained tight. 

Refineries in the US were currently running at around 85% of capacity. However, with many refineries in the Gulf area planning their annual maintenance turnarounds in February-March 2011, domestic supply was expected to be short during that time.

Additionally, sulphur demand from both the industrial and fertilizer sides was expected to remain strong throughout the first quarter.

Other US phosphate producers such as PotashCorp were expected to conclude their quarterly liquid sulphur contracts at the same level.

Sulphur is a raw material for phosphate fertilizer production.

($1 = €0.73)

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

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