US Q4 sulphur contracts down 21% on weak phosphate demand

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.

Sulphur is a key raw material in the production of phosphate fertilizers, including diammonium phosphate (DAP) and monoammonium phosphate (MAP).

By: David Tonyan
+1 713 525 2653

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