Magazine: Sulphur

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

Global demand for oil products has seen strong recovery in 2021, but depressed kerosene demand from the aviation sector continues to be a major barrier to full recovery, according to data and analytics company GlobalData. The company’s analysis of oil product flows suggests that when kerosene is excluded, oil product demand in Q3 2021 had fully recovered compared to the same period in 2019. However, demand for kerosene, mostly used for jet fuel, has hovered at around two thirds of pre-Covid-19 levels throughout the year, and when that is taken into account, total oil product demand was 3% below pre-Covid levels for Q3 2021. Kerosene demand saw the greatest impact from Covid-19 due to restrictions on air travel. While the sector recovered, to an extent, in the second half of 2020, recovery stalled in 2021 due to new waves of infections and restrictions, with new restrictions linked to the Omicron variant likely to have hit demand again in Q4.

Catalytic converters are the heart and hub of sulphuric acid plants. Converter replacement of equipment that has come to the end of its life is an opportunity to make improvements to the performance, productivity, reliability, durability and plant emissions. NORAM discusses design and project execution considerations for SO2 catalytic converter replacement and Chemetics considers the challenges and opportunities of converter retrofits.

Sulphur processing from sour gas fields dominates regional production, but the geographical remoteness of the area from end use markets and restrictions on sulphur storage means that producers often opt to reinject acid gas into oil and gas wells.

China’s private sector Shenghong Petrochemical refining complex is targeting a startup in late November, following the receipt of its first cargo of crude in October. The greenfield refining complex in the eastern Lianyungang petrochemical zone has a capacity of 16 million t/a, including a 320,000 bbl/d crude unit – the largest single stream CDU in China – and a 76,000 bbl/d naphtha reformer. Product capacities include 56,000 bbl/d of gasoline, 41,000 bbl/d of diesel and 32,000 bbl/d of jet fuel. Construction began in mid-2019, delayed from 2018 by late approval of its environmental impact assessment, but has been achieved within two months of the scheduled completion date in spite of the coronavirus pandemic. Shenghong Petrochemical is owned by Eastern Shenghong, a producer of petrochemical products and chemical fibres.

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

A seasonal decline in weather conditions in the eastern Atlantic will hinder operations at Jorf Lasfar in Morocco through the end of 2021 and into 2022. In South Africa, port congestion problems were challenging at Richard’s Bay with vessels subjected to 15 day wait times, increasing demurrage costs.

As sulphur recovery units operate at progressively higher temperatures, creep stress in the furnace refractory lining can lead to deformation or even failure of the bricks and require the shutdown of the SRU. UK-based DSF Refractories have developed a product which minimises creep stress damage at high temperatures, for a longer-lived furnace lining.

Sulphur is becoming an increasingly important crop nutrient, due to a combination of lower airborne sulphur emissions, the increasing prevalence of high analysis fertilizers, and higher cropping intensities.

Th e past year has seen an extraordinary run-up in sulphur and sulphuric acid prices, the former from a low of around $50-70/t f.o.b. in mid-2020 to more than $100/t higher than that at the end of Q1 2021. Prices then plateaued for much of this year, but they have begun moving inexorably upwards again in the past couple of months, drawn by rapidly rising phosphate prices, and Middle East sulphur rates recently breached price levels not seen since 2012.