Nitrogen+Syngas 366 Jul-Aug 2020
31 July 2020
PROJECT LISTING
A round-up of current and proposed projects involving non-nitrogen synthesis gas derivatives, including methanol, hydrogen, synthetic/substitute natural gas (SNG) and gas- and coal to liquids (GTL/CTL) plants.
Nickel is becoming increasingly important to the sulphur and sulphuric acid markets, with Indonesia now a key importer.
The fragile ceasefire between the United States and Iran broke down at the start of July, just three weeks after the signing of the June memorandum of understanding, after Iran fired at several vessels who had failed to notify them of their transit of the Strait of Hormuz, and the US retaliated with a missile barrage. While the two month negotiation period it had specified to solve all of the outstanding issues between the two parties had always seemed over-ambitious, market participants had at least expected to have that grace period to arrange for new cargoes and tranship them through the Strait. Now that the ceasefire has ended early, markets are truly entering uncharted waters.
Peter Harrisson, Principal, Sulphur & Sulphuric Acid Market Services, provides a brief snapshot of the global sulphur market at the end of June 2026.
• The market has paused as bearish buyer sentiment has not yet translated into lower spot prices. The direction of the next major deal is now the critical test. This will either initiate a downward price correction, validating buyer caution, or force a recognition of the market’s underlying tightness and bring purchasers back to the table at current levels.
The global sulphur market has entered a holding pattern, as a wave of bearish sentiment has so far failed to move stubbornly high spot prices. The departure of a significant volume of product from the Middle East has emboldened buyers and shifted market sentiment firmly towards bearish, but at time of writing this has so far failed to translate into lower prices. With sellers in no hurry to lower prices and spot availability still tight, the market has stalled as both sides wait for the other to blink first.
