Tag: Prices

After many years of slow decline, Canadian sulphur exports have begun to rise slightly, but dwindling US markets are seeing a move towards more sulphur forming to expand export opportunities.

Construction work has begun on a new hydrocracking complex for the Assiut refinery in Egypt, in the central Nile valley, according to TechnipFMC plc, who won the $1 billion engineering, procurement, and construction (EPC) contract for the project. The contract involves construction of new processing units including a vacuum distillation unit, a diesel hydrocracking unit, a delayed coker unit, a distillate hydrotreating unit and a hydrogen production unit which will use TechnipFMC’s proprietary steam reforming technology.

The global pandemic and new wave of lockdowns in some regions continue to pose a level of uncertainty to oil demand and in turn sulphur recovery. There are positive signs in the macro economic picture on the back of the vaccine rollout but significant question marks remain.

Metal markets are used to ups and downs, and, as we discuss elsewhere in this issue, this year has seen more than most, mainly thanks to the virus that is still keeping us indoors – as I write this, the UK has just moved back into a second national ‘lockdown’. However, this year has seen the fortunes of one metal in particular simply rise and rise – nickel.

A look back at some of the major events of 2020 for the sulphur and sulphuric acid industries, as well as a look forward as to how 2021 might look.

Demand for oil in developed countries was already falling before the coronavirus outbreak, and consumption growth is slowing in the developing world. Peak oil demand may arrive in the next decade. Coupled with more reinjection of sour gas rather than sulphur extraction, could we be seeing falling elemental sulphur production in a decade or so?

Production cuts globally at refineries have left supply tight heading into the fourth quarter, firming prices. This has been compounded by major exporters in the Middle East prioritising sulphur tonnes to contracts before spot sales.

Matt Langworthy, Analsyt for Argus Media, assesses price trends and the market outlook for sulphur.

Market Insight courtesy of Argus Media

The late autumn gloom has darkened in recent weeks, as Europe slipped back into a lockdown that seemed as inevitable as the encroaching winter.