09 April 2013 15:44 [Source: ICIS news]
LONDON (ICIS)--Sulphur buyers are facing increases for second-quarter 2013 contracts as first settlements saw a $10/tonne (€13/tonne) rise, market sources said on Tuesday.
Kuwait Petroleum Corporation (KPC) is the first producer to report quarterly agreements, settling contracts with traders servicing markets including India, as well as end-users in China, at $155/tonne FOB (free on board), an increase from the first quarter’s $145/tonne FOB.
Abu Dhabi National Oil Co (Adnoc) has yet to reach any settlements, but continues discussions this week. Meanwhile, Aramco Trading in Saudi Arabia has switched from quarterly price negotiations to posting a monthly price for all its term contract customers for all markets.
Global sulphur suppliers are optimistic on firmer prices in expectation of increasing demand from the fertilizer sector in China and other markets. However, spot prices in China and India have yet to reflect higher netbacks. Chinese end-users have been relatively inactive in the spot market, with sulphur inventory levels continuing to escalate, and estimated at more than 2m tonnes at the nine major ports.
($1 = €0.77)
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