Forecast price sulphur

Sulfur upward trend until the end of the year

This week's activities focus on contract negotiations for the first quarter of 2022; With figures that started on Tuesday at the level of Middle East offers for the first quarter release. As of Thursday, that amount had been adjusted to $ 285 per tonne FOB Middle East, which is thought to be at least part of the market for the first quarter supply with some tons of Middle East, which to date has ended at $ 280-285 FOB. It has arrived, it has been accepted, it has not been confirmed, and some negotiations are expected to continue. End users in North Africa and Brazil also continue to negotiate quarterly contracts from several sources. In the spot market, sentiment rose as Kuwaiti tendered bids from $ 290 / tonne fob to over $ 300 / tonne fob. This level was related to some sales positions of traders in the market; With several end users, there was also a delayed demand and in some cases a deficit in January delivery. In the Baltic region, the final result of 50,000 tons of Russian products pushed the tender above $ 290 per tonne of Baltic FOB.

30-60 day perspective of sulfur market

The company's sulfur supply is expected to be limited in January 2022, supporting the year that begins with corporate pricing.

In addition, CFR deferred demand is expected to support the next round of trading and figures with higher levels of FOB; Especially after the stagnation observed in the cash market in the midst of contract negotiations in recent weeks.

Reduce CFR import shipments

All CFR grades are between $ 150-350 / ton CFR. No offers for new shipments were reported this week, and most market participants described them as stable. A Formosa bidding shipment from Mailiao for less than $ 300 / tonne fob in late January was linked to a Chinese businessman. Taking into account the shipping cost of about $ 27 / ton to southern China, this figure is around $ 330 / ton CFR or higher; A level unprecedented to date. Reports of the purchase of a Middle East Spot shipment by a southwestern manufacturer at a price of approximately $ 316-318 / ton CFR were denied. The port inventory today increased to 1.66 million tons. The price of molten sulfur is still low; With reports of $ 150-160 import bids, some Chinese tonnage suppliers, as well as some refineries, are adding more tonnage of molten sulfur to current contracts to prevent their molten sulfur stockpiles from accumulating.

Several ships carrying molten sulfur diverted to the Yangtze River due to bad weather in Shandong Port. China imported 999,600 tonnes of sulfur in November, up 87 percent from a year earlier. However, despite the fact that last year we saw the impact of quarantine on the demand rate, imports are still lower than last year. Imports in the last two years are 26% lower than in 2019, mainly due to reduced storage and increased domestic production of sulfur. Reducing operating rates has also played an important role in this process. The domestic market raised the level of offers on Monday. Announced 400 yuan / ton; However, after last Friday's sale in the range of 2,380-2,400 yuan / ton from the factory, no sales took place. Tuesday and Wednesday trading in the former market was between 2,390-2,400 yuan / ton. Sinopec raised prices for Wangzhou and Dajoj by 20 yuan / ton this week; Wangzhou is 2,010 yuan / ton of the former factory and Dajoj is 2,000 yuan / ton of the previous prices.

Delivery of sulfur in Oceania

Sulfur (sulfur) delivery in the first eleven months of the year increased by 16 percent compared to the same period last year and reached 160,500 tons with more imports than the main import destinations of Canada and Oman. New Zealand imported 133.700 tonnes of sulfur from Canada from January to November this year, up 24% from last year; Imports from Oman increased by 3% to 17,600 tons per year. Deliveries from South Korea fell 5 percent year on year to 5,800 tonnes from 6,600 tonnes in January to November.

The increase in the price of FOB Spot is in the middle

The FOBSPOT price in Middle East (excluding Iran) is estimated at $ 292-302 / ton FOB, which was estimated last week at $ 16-12 per ton. The offers of traders reached the same level. Negotiations for a Middle East 2022 supply contract continue; With an accepted level of $ 285 / ton FOB Middle East for traders, after the initial market offer of $ 290 per ton FOB. Some market participants indicate a possible range of $ 280-285 per tonne FOB. Iran's FOB range is estimated at $ 235-245 / tonne stable FOB. Sulfur producer and marketer IGCC has issued a tender for the sale of 60,000 tons for loading in the second half of January from Assaluyeh. 40,000 tons of this total shipment is granular, while the remaining 20,000 tons is a combination of dark scales. The tender closes on December 28-29 (January 7-8). 

The spot tender was also issued on Tuesday by Razi Petrochemical with a volume of 25,000-30,000 tons of granular sulfur for loading in January; It is believed that the tender was awarded today but no information on its price is yet available. A bulk shipment of 20,000 tonnes of Turkmen was sold this week to a buyer off the west coast of India for delivery in December. Clump sulfur was also sold to buyers off the west coast of India for $ 180 / ton FOB, with one buyer offering up to $ 210 per ton FOB. In addition, granular sulfur was sold to buyers in the same area for $ 200 / ton FOB. 

The 30,000 tonnes of lump sulfur, originally offered as bulk cargo, have recently been sold in smaller quantities in large bags instead of containers. The cargo loaded at Umm Qasr has been sold to the West Indies coast as well as Egypt in recent months. 1,000 tons of granular sulfur were exported for loading in January; It is believed that the tender was awarded today but no information on its price is yet available. A bulk shipment of 20,000 tonnes of Turkmen was sold this week to a buyer off the west coast of India for delivery in December. Clump sulfur was also sold to buyers off the west coast of India for $ 180 / ton FOB, with one buyer offering up to $ 210 per ton FOB. In addition, granular sulfur was sold to buyers in the same area for $ 200 / ton FOB. The 30,000 tonnes of lump sulfur, originally offered as bulk cargo, have recently been sold in smaller quantities in large bags instead of containers.

 The cargo loaded at Umm Qasr has been sold to the West Indies coast as well as Egypt in recent months. 1,000 tons of granular sulfur were exported for loading in January; It is believed that the tender was awarded today but no information on its price is yet available. A bulk shipment of 20,000 tonnes of Turkmen was sold this week to a buyer off the west coast of India for delivery in December. Clump sulfur was also sold to buyers off the west coast of India for $ 180 / ton FOB, with one buyer offering up to $ 210 per ton FOB. In addition, granular sulfur was sold to buyers in the same area for $ 200 / ton FOB. The 30,000 tonnes of lump sulfur, originally offered as bulk cargo, have recently been sold in smaller quantities in large bags instead of containers. The cargo loaded at Umm Qasr has been sold to the West Indies coast as well as Egypt in recent months. 1,000 tonnes of Turkmen were sold this week to a buyer off the west coast of India for delivery in December. 

Clump sulfur was also sold to buyers off the west coast of India for $ 180 / ton FOB, with one buyer offering up to $ 210 per ton FOB. In addition, granular sulfur was sold to buyers in the same area for $ 200 / ton FOB. The 30,000 tonnes of lump sulfur, originally offered as bulk cargo, have recently been sold in smaller quantities in large bags instead of containers. The cargo loaded at Umm Qasr has been sold to the West Indies coast as well as Egypt in recent months. 1,000 tonnes of Turkmen were sold this week to a buyer off the west coast of India for delivery in December. Clump sulfur was also sold to buyers off the west coast of India for $ 180 / ton FOB, with one buyer offering up to $ 210 per ton FOB. In addition, granular sulfur was sold to buyers in the same area for $ 200 / ton FOB. 

The 30,000 tonnes of lump sulfur, originally offered as bulk cargo, have recently been sold in smaller quantities in large bags instead of containers. The cargo loaded at Umm Qasr has been sold to the West Indies coast as well as Egypt in recent months. The 1,000 tonnes of lump sulfur, originally offered as a bulk consignment, have recently been sold in smaller quantities in large bags instead of containers. The cargo loaded at Umm Qasr has been sold to the West Indies coast as well as Egypt in recent months. The 1,000 tonnes of lump sulfur, originally offered as a bulk consignment, have recently been sold in smaller quantities in large bags instead of containers. The cargo loaded at Umm Qasr has been sold to the West Indies coast as well as Egypt in recent months.

Rising CFR spot prices in North Africa

The price of the CFR Spot in North Africa rose to $ 285-300 / ton, although this product was sold at the highest price with the Granel tonnage. Contract negotiations for the first quarter of 2022 are expected to be finalized by early January from several suppliers, including Middle East, Kazakhstan and Media. Egyptian CFR spot sales were reported below $ 280 / tonne, but have not been confirmed, noting that current trading is seeking immediate FOB price stability. Shipping inquiries for a small shipment of 5,500 tonnes from Iskenderun in Turkey to Esfax in Tunisia were issued on December 25-31 (January 24-30). The port is expected to close on December 23-28 due to unfavorable weather conditions in the port of Jorf Lasfar in Morocco. Negotiations for a contract in the first quarter of 2022 are likely to continue. Shipping inquiries were also issued for a shipment of 60,000 tons from Kuwait to Morocco on January 9-11 (January 12-20).

Sulfur deposits in Motanda and South Africa

The sulfur burner at the Motanda Glencore site currently produces 10,000 tons of sulfuric acid per month. The maintenance period at this site ended in October. Glencore predicts an annual production of 25-30 thousand tons of copper and 11 thousand tons of cobalt between 2022-2025. Sulfur bids are currently $ 640 / tonne delivered to Lycas. Sanhe, as a consumer and distributor of Copperbelt sulfur in the consignment market, delivered deliveries to Bira in Mozambique or Richards Bay in South Africa in January. A paper producer in South Africa is expected to request 15,000-20,000 tonnes in January. As a phosphate producer in the market, Foscor appears to be requesting a spot shipment with delivery in January; Loading conditions at Richards Harbor have improved this week.

The Impact of the Christmas Holiday on the Sulfur Market in the Mediterranean

Latest Sulfur News  Mediterranean CFR has risen to $ 290-300 per tonne after several weeks of recession; While the global market is strengthening, rising shipping costs are limiting cheap options. At least $ 50 / ton can be paid for shipping on most supply routes in the area. In the absence of low-cost products, buyers are accepting shipments with delivery in January. The Mediterranean FOB level has risen to $ 240-245 / ton, which is expected to strengthen significantly for much higher levels in future tenders in Turkey. Currently, the Black Sea granule product is $ 10 / ton higher than the Mediterranean FOB. Greek bidding process has calmed down ahead of the Christmas holidays. The most recent reported sale was a $ 7,000 tonne tender for Motor Oil for December, which was awarded $ 230 / tonne FOB. According to the latest GTT statistics, Greece's export volume in the first ten months of 2021 is close to 208. 00, which is about a third more than the annual rate. Undoubtedly, O-Micron will cause market disruptions in the new year, so it remains to be seen how this will affect 2022 trade volumes. But Greece's position in the Mediterranean gives producers access to a wide range of export partners. A sudden shutdown of production at the 65,000-ton Pulp Sulfur Refinery ceased on October 15 (October 23), but the plant resumed operations in late November. Gallup expects the plant to reach full capacity early next year, bringing more sulfur into domestic and export markets. Portugal exported a total of 19,000 tonnes from January to October, up 10% from last year; On the other hand, compared to the same period last year, it delivered three times more sulfur to France, but compared to 2020, it delivered less than half of that 2,000 tons of sulfur to Spain.

The sulfur market size was estimated at 61.88 million metric tons in 2020 and the market is expected to register a CAGR of more than 5% during the forecast period (2021-2026).

Due to COVID-19, there has been disruption in the supply of sulfur and decline in the demand in multiple end user industries such as metal manufacturing and chemical processing. Moreover, COVID-19 outbreak has completely disrupted the manufacturing and supply chains of fertilizers, which may hamper the market in short term. However, the condition is expected to recover, which will restore the growth trajectory of market studied during the latter half of forecast period.

• Over the short term, major factors driving the growth of the sulfur market are the rising demand from the fertilizer manufacturing sector and increasing usage of sulfur for the vulcanization of rubber.
• On the flipside, stringent environmental regulations regarding emissions are expected to hinder the market growth.
• Usage of sulfur in cement polymer concrete is expected to act as an opportunity in the future.
• Asia-Pacific dominated the global market, with the largest consumption in terms of volume and value. The market is expected to witness substantial growth during the forecast timeframe.

The global sulfur fertilizers market was valued at $3.5 billion in 2018 and is projected to reach $4.1 billion by 2026, growing at a CAGR of 2.2% from 2019 to 2026. Sulfur is an important nutrient in the growth and yield of healthy crops. It is increasingly used in seed oil crops and is usually incorporated in the form of sulfur dusts or pesticides.

The traditional and conventional agriculture have led to soil deterioration over time. The soil that is now being used for agriculture purposes lacks several essential minerals that offer productive environment for crops. The minerals required are added in the form of fertilizers. The main deficiencies are of nitrogen and sulfur. Thus, the use of sulfur-based fertilizers is on the rise. As the sulfur-based fertilizers offer lowered pH level for alkaline soils and also help crops in retaining moisture, the use of such fertilizers drives the sulfur fertilizers market growth. Liquid sulfur fertilizers is a secondary nutrient liquid which acts as a good plant food supplement. It worked as a fungicide and growth promoter for plants. Additionally, It aids in improving productivity related issues and reduces sulfur deficiency in soil and plants.

 Petrotahlil - Pricing momentum in the global sulphur market was sustained for another week, with prices in the east rising to a 14-month high.

STRONGER PRICES IN MIDDLE EAST AND CHINA

In the Persian Gulf, Qatar’s Muntajat kicked off the November posted prices announcement with a $4/tonne increase on October’s price. The new price is the highest announced since August 2019. Market players await announcements from the region’s other major suppliers. In China, market players broadly confirmed prices are in the low/mid-$90s/tonne CFR, A level also last seen in August 2019.

Several cargoes were heard sold to the Yangtze river at $93-95/tonne CFR. International offer prices were further supported by stronger prices from the Persian Gulf, following the announcement of the Qatar Sulphur price.Domestic deals for spot granular sulphur were done at CNY755-760/tonne ex-works, up CNY5-10/tonne from the previous week. Each deal was for around 3,000 tonnes, with total volumes around 10,000 tonnes, as at 28 October. Sinopec Puguang Gasfield raised its offers by CNY30/tonne on October 27 to CNY810/tonne for shipments at Wanzhou port and to CNY780/tonne for truck cargoes. Tender activity continued in India, with FACT re-issuing a purchase tender for 15,000-25,000 tonnes for delivery in late-November to December. Coromandel (CIL) is understood to have closed a tender for a total of 50,000 tonnes but an award was not announced. The Mediterranean market has also picked up with higher prices in Turkey, Italy and.

ACTIVITY THIN IN NORTH AMERICA

In Canada, no new business was heard. Suncor’s sulphur plant in Montreal started a planned maintenance mid-September that was to last through the end of October. Suncor’s Edmonton refinery has also been undergoing maintenance. Refinery utilisation was 87% for the quarter. Pacific Coast Terminals started a three-week cleaning of its water storage tanks on 19 October, but it is not impacting sulphur operations at the terminal. In the US, the Gulf remains void of sulphur activity, and Hurricane Zeta made landfall on Wednesday afternoon south of New Orleans, Louisiana. Ports and refineries shut ahead of Zeta, the sixth named storm to make landfall on the US Gulf Coast this season. The Nord Amazon will load 15,000 to 18,000 tonnes of sulphur in Anacortes, California, in the first week of November. California inventories remain low.

Source : ICIS