Tag: Prices

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.

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.

Market Insight courtesy of Argus Media

Market Insight courtesy of Argus Media

The first half of 2021 has been characterised by tight supply in the ammonia market, exacerbated by plant outages in Europe, Trinidad, Saudi Arabia and Indonesia. At the same time, higher spot demand has fuelled significant price increases in both the eastern and western hemispheres. Low inventories and reduced export availability in the Far East forced Indian phosphate producers and industrial consumers of ammonia to source product from other locations.

China is the world’s largest importer of sulphur, mainly to feed domestic phosphate production. Sour gas in Sichuan and new refinery production, coupled with rationalisation in the phosphate sector are all leading to reduced imports, while new smelters are increasing sulphuric acid production and reducing the need for pyrite-based and sulphur burning acid production.

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

The processed phosphates market view is supporting sulphur demand. The average DAP price for Morocco f.o.b. is forecast to rise significantly on 2020 levels. As the leading end use for sulphur consumption and trade, this has implications for pricing. The expected downward correction in DAP in 2022 will likely lead to a parallel decline in sulphur, at a time when supply is expected to improve in the oil and gas sector, adding further pressure for prices to ease.

Market Insight courtesy of Argus Media