27 January 2012 12:14 [Source: ICIS news]
ICIS (LONDON)--India’s Paradeep Phosphates Ltd (PPL) closed a sulphur purchase tender for 35,000 tonnes on Friday, trader sources said.
The new Indian granular sulphur purchase tender will put spot sulphur prices to the test, said one Indian trader. PPL requested shipments to arrive between 1 March and 4 March, the source added. All offers are to remain valid until 31 January and an award is expected by early next week.
This is the first Indian sulphur purchase tender in 2012, and the winning offer is expected to bring clarity to spot sulphur prices, which have appeared divided in recent weeks.
The January official selling price for the Indian market, set at $190/tonne (€188/tonne) FOB Ruwais by Abu Dhabi National Oil Company (Adnoc), has been branded “unrealistic” by many buyers.
Additionally, Middle East sulphur producers, including Adnoc itself, claimed to have sold spot tonnes at $180–185/tonne FOB (free on board) in the past two weeks.
On a cost & freight (CFR) basis, the last Indian purchase by IFFCO (Indian Farmers Fertiliser Cooperative) was concluded at $186/tonne, netting back to around $160/tonne FOB Middle East
“[Because] no-one really knows what real price ideas are… I’m not surprised that we’re hearing contradicting numbers,” a European trader said.
Recent sulphur prices have been declining because of weaker demand from the phosphate fertilizer sector.
Sulphur is a raw material for the production of phosphate fertilizers.
($1 = €0.76)
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