Magazine: 401 Jul-Aug 2022

Chinese refinery output has been steadily falling this year as covid-related lockdowns impact upon the economy. Figures from the National Bureau of Statistics showed that refinery output fell to 13.8 million bbl/d in April – down 2% year on year – then took a sharp fall in May to 12.6 million bbl/d, more than 10% down on the same time in 2021, when output stood at 14.1 million bbl/d. May’s figure was 12.7 million bbl/d, a modest increase on April, but still 1.6 million bbl/d down compared to May 2021. Refining margins have also been hurt by high oil prices due to the Ukraine conflict, dropping close to zero or even negative according to industry estimates.

The past couple of years have been quite the wild ride, with major global events dominating markets outside of the usual concerns of broad market supply and demand. It seems like a long time ago now, but this time last year, the price of a barrel of Brent crude was about $75. Go back two years, in the wake of the onset of covid restrictions, and that barrel would have cost you $40 (and just $25 a couple of months before that). In the wake of Russia’s attack on Ukraine, you could easily have paid $130, and it has been hovering around $110/bbl for the past few months. The last time oil spent any time at that level was in 2014, just before the Chinese economy ran out of steam and prices slumped by 70%.

At the end of June a three day strike among workers at Chilean state mining company Codelco paralysed copper output at the world’s largest copper producer. The strike was in protest at the threatened closure of the Ventanas smelter, which was the site of an alleged leak of sulphur dioxide on June 6th. Chile’s environmental regulator subsequently provisional measures for both Codelco and power company AES Chile after numerous people in the nearby towns of Quintero and Puchuncavi in central Chile, including hundreds of high school students and staff, showed signs of sulphur dioxide poisoning. The measures include the installation of a new temperature sensor to measure potential thermal inversions. Both companies have denied responsibility for the leak; Codelco says that its air quality stations recorded normal levels of SO2 during the time of the incident.

Meena Chauhan , Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.

The ongoing recovery from Covid-19 has led to an uptick of sulphur from refineries in regions including the US compared with a year ago. As travel around the global improves, increasing fuel demand points to higher operating rates and improved sulphur recovery.

More than 400 representatives from across the global sulphur community convened in Abu Dhabi from 24-26 May 2022 for an exciting new event, the Middle East Sulphur Conference, devoted to exploring best practice operations across the entire sour gas and sulphur value chain.

The Sulphur Institute’s (TSI’s) annual Sulphur World Symposium was held in Tampa, Florida this year, from May 9th-11th.

E. Almeida and B. Ferraro of Clark Solutions discuss how regular monitoring by simple testing of the towers in sulphuric acid plants can improve the reliability and lifespan of the plant.

Clariant has announced a reorganisation into three global business units instead of the previous five, with the business unit presidents to be located in the regions with the largest customer base and highest growth potential for the respective businesses. It will also create a new executive steering committee that will include the CEO, the CFO and the presidents of the new business units. The company says that the new structure aims to reduce hierarchical layers, foster greater accountability, speed up decision-making processes and enhance customer proximity, while strengthening diversity.

M. Rameshni and S. Santo of Rameshni & Associated Technology & Engineering (RATE USA) report on advanced catalysts for increasing the sulphur recovery efficiency of new and existing sulphur recovery units to meet stricter environmental regulations.