Brazil’s Vale scraps sulphur purchase tender on price uncertainty

11 March 2014 16:30 Source:ICIS News

LONDON (ICIS)--Brazil-based mining company Vale has cancelled its purchase tender for 30,000-40,000 tonnes of sulphur for April loading because offers were too wide and time frames could not be met, a company source said on Tuesday.

“We are going to communicate with our suppliers and we will cancel this process - we have received a few offers, but not for the time frames we would like,” the source said.

Vale thought a price range of $200-260/tonne CFR (cost and freight) Brazil was too wide and pointed to some price uncertainty in the market.

“We have cancelled because the price is too high. At such a wide range we would be crazy to do anything.

“With such a wide range of [price] proposals we prefer to get out,” the source added.

Vale sent out bids on 21 February enquiring about availability. It said it would take two weeks before the tender was finalised because of several national holidays scheduled for 1-5 March.

In addition to Vale confirming cancellation of its tender, India’s FACT is reported to have scrapped its purchase tender for 15,000-25,000 tonnes of sulphur for April arrival following news that Saudi Aramco Trading has reduced its April price by $10/tonne.

By Julia Meehan