The July QSP was announced at $132/tonne FOB (free on board).
The fall in the QSP comes despite tight global sulphur supply, and amid persistently weak demand from China in the second quarter – during what is typically the peak season.
China buyers remain on the sidelines of the market and continue to source predominantly on the domestic market.
Nevertheless, there has been talk of some China buyers needing to cover short positions in the coming weeks.
The drop in the QSP also comes despite ADNOC agreeing its third-quarter contract prices in the mid-$130/tonne FOB.
This had been expected to add additional upwards pressure on current spot prices amid the ongoing tight supply in the market if and when China demand returns, but the fall in the QSP now calls this in to question.