11 October 2013 16:43 [Source: ICIS news]
HOUSTON (ICIS)--US Tampa sulphur contracts for the fourth quarter settled down by 21% to $75/long ton ($56/long ton), buyers PotashCorp and Mosaic confirmed on Friday.
The contract is agreed on a cost and freight (CFR) basis.
PotashCorp was reported to be the first buyer to settle sulphur contracts in Tampa for the second quarter in a row. Sources said Mosaic is usually the first to settle.
A drop in price was expected, with declining global sulphur prices caused by continued thin demand in the global phosphate market. Lagging phosphate demand is attributed to a weaker market in India and the seasonality of demand in North America.
The size of the decrease surprised some sources, as expectations had been for a $10-15 drop. The drop is significantly less than the Q3 decrease, as sulphur prices dropped $60/long ton in July.
The price is down 53% year-on-year, as last October 4Q contracts settled at $160/long ton.
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