Tag: Prices

In China, domestic prices are expected to come under significant downward pressure, with seaborne indications already following suit, with buyers said to have rejected offers around the $375/t c.fr mark.

Ammonia benchmarks west of Suez remain supported by limited availability at key regional export hubs amid increased potential for cargoes to arrive from the East, where availability is far healthier, and prices appear under pressure. The disparity in prices was illustrated towards the end of August, when Nutrien sold 25,000 tonnes to multiple buyers in NW Europe for 1H September delivery at $550-555/t c.fr. When netted back to Trinidad, the price marks a sizeable premium on the $375/t f.o.b. last achieved by Nutrien back in late June, although given that last business in Algeria was fixed at $520/t f.o.b., it appears there is room for delivered sales into Europe to move up further. Regional availability is still limited, with extreme weather conditions in the US Gulf and North Africa potentially impacting supply further over the coming weeks.

This year will be the 40th Sulphur – now Sulphur + Sulphuric Acid – Conference to be held. From its beginnings in Canada to this year’s meeting at the Hyatt Regency hotel in Barcelona, much has changed, but its mission – to be an essential annual forum for the global sulphur and acid community – remains the same.

In the last two years there have been significant changes to the level and location of sulphur inventory, which has caused swings in short-term supply availability. Inventory plays a necessary role in balancing the sulphur market but exactly when, where, how, and why inventory enters the market can trigger a diverse range of price responses. In this insight article, CRU’s Peter Harrisson looks at how inventory change influences sulphur availability and pricing.

At the end of August, the Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) tendered for 35,000 tonnes of sulphur for September loading from Ras Laffan, with offer prices reported at or around $130s/t f.o.b., according to market sources. Bids were received at multiple levels, with market participants initially anticipating awards around the mid-$120s/t f.o.b. The tender result was higher than market expectations and would equate to delivered prices to key Asian markets at $150-155/t c.fr. But prices in China and Indonesia remained lower this week at around $140-145/t c.fr, with India at $145-150/t c.fr. Prices have increased steeply since Muntajat’s 25 June session, which was indicated awarded in the mid-$80s/t f.o.b.. and Muntajat posted its Qatar Sulphur Price (QSP) for September at $125/t f.o.b., up $19/t from $106/t f.o.b. in August. This represents the highest QSP since March 2023 at $133/t f.o.b., and reflects delivered levels to China nearing $150/t c.fr at current freight rates. Tight supply and strong downstream demand have pushed tender prices higher. Muntajat tenders were previously awarded at $92/t f.o.b. in April, up from $88/t in March and the low $80s/t f.o.b. in February.

Refinery sour water strippers are an often overlooked resource of low GWP ammonia. Martin A. Taylor and Charles L. Kimtantas of Bechtel Energy Technologies and Solutions, Inc. (BETS) show the results of a study on reusing an existing SWS as one of the major systems in a SWSPlus unit for the recovery of ammonia for sale. Relative cost factors will compare a complete SWSPlus unit versus reusing an existing SWS.

One of the biggest areas for new sulphuric acid demand in the past few years has been in nickel processing plants, particularly in Indonesia. A decade ago, incoming president Joko Widodo took a strategic decision that the country needed to try and capture more of the value chain from its mining and mineral industry, which was focused at the time on exports of aluminium, copper and nickel ores and concentrates, mainly to China. Over the past 10 years, the export of raw ores has been progressively restricted and companies instead compelled to build downstream processing plants for the metals. With China the main recipient of Indonesian ores, much of the investment in metals processing in Indonesia has been via Chinese companies.

Muntajat announced its QSP for September at $125/t f.o.b., an increase of $19/t from its August price. This was following its tender earlier this week, which market sources indicated to have achieved at or around $130s/t f.o.b. Over the past two weeks, KPC in Kuwait closed two sales tenders, with both indicated awarded in the high $120s/t f.o.b. Middle East spot f.o.b. prices are at their highest level since March 2023 and have climbed 58% over the past two months.

China’s acid production continues to grow as new smelters come on-stream. But high domestic demand from phosphate production as export restrictions are lifted and a shortage of copper concentrate may limit the potential for acid exports.

Sulphur prices are expected to recover from declines in May and June and continue climbing over the coming months, though good availability will limit upside.