India sulphur prices down 5% on weak China/Brazil demand

24 June 2011 15:41  [Source: ICIS news]

LONDON (ICIS)--Latest Indian sulphur business has dropped by nearly 5% from the last purchase tender award, prevailed by weak demand in other major import markets, trader sources said on Friday.

This week an $11/tonne (€8/tonne) drop has been seen in India, where a sale has been reported at $232/tonne CFR (cost and freight), down from last tender business by Paradeep Phosphates Ltd (PPL) under its 7 June purchase tender award.

The new business is understood to be agreed between sulphur buyer Indian Farmers Fertilizer Cooperative (IFFCO) and trader Mitsubishi, trader sources said.

A 30,000-tonne sulphur cargo will be supplied from Qatar in mid-July, sources added.

Another Indian fertilizer manufacturer Fertilizers and Chemicals Travancore Ltd (FACT) closed a purchase tender on 21 June, for 25,000 tonnes of product for July delivery.

Trader Swiss Singapore submitted the lowest offer at $231.50/tonne CFR Cochin, but no further information is immediately available.

The fall in Indian prices is likely due to continuously weak demand in major import markets China and Brazil.

“Traders who have not been able to place their cargoes in China and Brazil probably tried to offer at a lower price to India in order to divert their cargoes,” a Chinese trader said.

Chinese diammonium phosphate (DAP) producers have sulphur inventories that will last until the end of July, and hence are comfortable and not in a hurry to purchase.

Major buyers in Brazil are also fully stocked at least until July. They are likely to rely on contractual deliveries, now priced at $256-258/tonne CFR, for the second half unless the difference between spot and contract prices is Brazil.

Export business out of India has also been agreed at lower prices due to weaker market sentiment. Reliance Industries made an award to Japanese trader Mitsui price under its 17 June sales tender. The agreed price is below its 26 May tender award, a source close to the producer said.

The 26 May tender was awarded at below $225/tonne FOB (free on board).

($1 = €0.70)

For more on sulphur visit ICIS pricing fertilizers

By: Freda Gordon
44 208 652 3214

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