Sulphur market winds down with Middle East February prices under pressure

Sylvia Traganida

03-Feb-2017

Focus article by Sylvia Traganida

LONDON (ICIS)–The sulphur market remains subdued for another week as Chinese players are out of the market due to the Lunar New Year holiday, according to sources on Friday.

Phosphates producers have covered their requirements to meet the healthy domestic demand and average operating rates are low due to environmental issues. As a result Chinese buyers are unlikely to be in a hurry to make purchases from next week after the holidays.

Chinese-formed sulphur inventories have not changed since last week due to the Lunar New Year holiday and remain at 1.451m tonnes.

In the Middle East, the market was dominated this week by the announcements of the February price from the three major producers. All kept prices unchanged or decreased on the back of a lack of demand globally and low activity.

In India, the market remains subdued with one deal concluded by Green Star Fertilisers and no other new tenders heard. Buyers are reluctant to make purchases also due to the devaluation of the rupee.

In Europe, the market is lacklustre due to a lack of availability from Russia as Gazprom Export continues to have production issues and no product available. First-quarter contracts have been settled and no new spot business has been heard, with some oversupply in Benelux.

West of Suez, the sulphur market in the US remains subdued due to the Lunar New Year holiday and a lack of business. A cargo was heard loading from the US Gulf to Vale at $100/tonne CFR (cost and freight), but this price has not been confirmed.

Meanwhile, Vale in Brazil has still not confirmed the settlement of its contract with the US. There has been no new spot business this week, as product availability remains tight.

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