30 November 2011 15:18 [Source: ICIS news]
LONDON (ICIS)--Taiwan’s Formosa Petrochemical Corp (FPCC) expects to issue a sulphur sales tender on 1 December, a company source said on Wednesday.
The producer plans to offer 15,000 tonnes of granular sulphur for early January shipment from Mailiao, the source said.
Many export cargoes from Formosa are sold to China because of advantageous freight rates, recently estimated to be in the low-$10s/tonne. As a result, recent price drops in China are expected to be reflected in the new tender.
“It will be no surprise if this awarded price is very low,” the source added.
The producer last sold 15,000 tonnes of sulphur to Japan-based trader Mitsui at $227.50/tonne (€170.60/tonne) FOB (free on board) for shipment to Vietnam under its 30 September sales tender.
With its sulphur production now running at normal rates, Formosa is returning to the export market, after shutdowns at its Mailiao refinery caused by fires at the hydrogen and propylene pipelines in late July.
“Our sulphur production is all in order, at around 35,000 tonnes/month,” according to the source.
Chinese sulphur prices fell in recent weeks as a result of lower downstream demand and prices, including for sulphuric acid and phosphate fertilizers. Chinese sulphur sales dropped to $215/tonne CFR (cost and freight) this week, from the low-$230s/tonne CFR in late October.
($1 = €0.75)
For more on sulphur, visit ICIS pricing fertilizers
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