China sulphur inventories increase for first time in seven weeks

12 June 2014 15:45 Source:ICIS News

LATVIA, Riga (ICIS)--Chinese formed sulphur inventory levels increased for the first time in seven weeks on the arrival of new cargoes, sources confirmed on Thursday.

This week’s 77,000 tonne increase was not a sign of a weak market or a drop in demand, rather the need for downstream producers to start drawing on stocks, market sources said.

“The build does not mean the market is weaker, the market is stronger. Things are getting better and you see prices are firming,” an international trader commented.

“So we’ve seen a slight increase but cargoes have arrived. Essentially the market is tight – just look at stocks this time last year they were over two million tonnes,” said another trader.

The largest builds were seen in Fangcheng and Nantong. 

Chinese Formed Sulphur Inventory Levels 
(’000 tonnes)

 

12 June

5 June

Fangcheng

340

300

Zhanjiang

130

107

Beihai

41

62

Zhenjiang

170

180

Nantong

430

375

Qingdao

170

180

Rizhao

0

0

Longkou

10

10

Tianjin

2

2

Total

1,293

1,216

By Julia Meehan