06 February 2012 16:02 [Source: ICIS news]
LONDON (ICIS)--UAE’s Abu Dhabi National Oil Co (Adnoc) has acknowledged weakness in sulphur prices and lowered its February official selling price by $10/tonne (€7.60/tonne) from the previous month, an Adnoc source said on Monday.
The February price is set at $180/tonne FOB (free on board) Ruwais, applicable to the Indian market only through traders, the source added.
The new price reflects a delivered price in the low-$200s/tonne CFR (cost and freight) India, which is nearly $20/tonne above last concluded business under the Paradeep Phosphates Ltd (PPL) 27 January purchase tender award.
The price is also above KPC Kuwait’s first-quarter sulphur contracts in the $170-180/tonne FOB Shuaiba range, which is applicable to the Indian market.
This has raised the question as to how realistic Adnoc’s monthly sulphur selling price is.
Adnoc did not make a bigger downward adjustment because it had not sold any spot tonnes at below $180/tonne FOB, the source added.
Sulphur prices have been trending downwards due to weaker downstream phosphate fertilizer demand.
($1 = €0.76)
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