Section: CRUSU Market & Features

• Sulphur prices have been revised higher in the latest forecast after supply from the Middle East was lower than expected in February, and buyers with uncovered demand were forced to chase prices upwards. UAE sulphur exports normally fall at the start of the year due to scheduled maintenance, but sales in February this year were 200,000 tonnes short of what is typical. Prices may climb more than expected as buyers scramble to cover their shorts. If supply is slower to return than currently anticipated, momentum may push prices even higher in the short term.

Sulphur’s key role as a plant nutrient means that its use as a fertilizer continues to be a major area of demand.

Tight supply limits availability as China maintains export restrictions.

Global sulphur benchmarks rallied at the end of February, underpinned by strong demand in Indonesia and stock drawdowns in China as fresh European sanctions on Russia targeted the port of Ust-Luga. Chinese buyers paid up to $225t/t c.fr for a cargo, with unconfirmed rumours of business at even higher levels. However, delivered prices still lag domestic port spot prices in China, which are now assessed at a delivered-price equivalent of around $242/t c.fr. China’s delivered sulphur price jumped significantly as port inventories declined, and new arrivals were limited. Only two new cargoes were reported in the last week of February, one from a mainstream source into southern China at $205/t c.fr, and the second at $225/t c.fr by a phosphate producer for the Yangtze River. The sulphur port spot transaction price is reported at around 2,0402,050 yuan/t FCA ($281-283/t), with the low-end up $26/t and high-end up $25/t compared with previous settlements. That port price indicates delivered values at around $242/t c.fr, which is $17/t higher than the import price on the Yangtze. Phosphate producers need to purchase more sulphur to meet the increased buying activity in northeastern market and the improving spring application season demand in northern China. Still, market sales availability is limited, as most port tonnes are held by traders instead of end-users, while traders are selling limited quantities now to push prices higher. Chinese total port inventory dropped to 1.89 million tonnes by 26 February 2025. The quantity at Yangtze river ports declined 59,000 tonnes to 633,000 tonnes, while Dafeng port inventory decreased 20,000 tonnes to 450,000 tonnes.

Rapidly increasing lithium production is projected to require several million t/a of sulphuric acid in the next few years, with China, the USA and Australia the main consumers.

Building on the success of its previous conferences, SulGas Mumbai 2025 brought together 154 sulphur and gas treating stakeholders, representing 68 companies for its 7th technical forum in the Indian subcontinent. We report on some of the key topics on the agenda.

The first installed combination of a regenerative SO2 scrubbing system with a sulphuric acid plant using Worley Chemetics’ CORE™ reactor technology started up in November 2022. The combination of these technologies allows production of high-grade sulphuric acid from gases with low and/or fluctuating SO2 concentrations. C. Trujillo Sanchez and R. Dijkstra of Worley Chemetics report on the design concepts of this integrated process, highlight where it is most effective and report on the start-up and first years of operation of the plant.

Apart from having a good plant design, good maintenance practices and good operational discipline are key to optimise the performance of an acid plant and to protect it from corrosion and achieve a long life. B. Mumba, T. Mwanza and P. Ng’ambi of Kansanshi Mining PLC explore the Kansanshi sulphuric acid plant operations and the key parameters monitored and practices adopted that have helped to extend the catalyst campaigns from two years to four years.

Preventing regenerator amine carryover to the sulphur recovery unit can have catastrophic consequences and must be avoided at all costs. B. Spooner and M. Sheilan of SGS Amine Experts detail how by correctly interpreting operating data, having proper instrumentation and good chemical analysis, amine carryover can be prevented.

Global sulphur prices were mostly assessed flat in mid-January, with only slight changes for China, Indonesia and India, while the first quarter contracts for the Middle East, North Africa and Tampa increased from the previous quarter. Overall, the number of transactions taking place globally has declined as subdued demand has limited trading activity in most delivered markets. The current sulphur price environment has been shaped by the combination of rising Chinese demand and higher Middle East f.o.b. prices in the second half of last year. As a result, some consumer markets such as Indonesia and India have been subject to upward pressure in order to remain attractive destinations. But demand remained lacklustre across delivered markets, leaving prices relatively stable.