Sulphur prices were assessed mostly stable globally with price changes only present for Brazil, Canada and the Baltic Sea. Global activity was muted. Indications of demand recovery were present in Brazil with buyers progressively reengaging in the market, but the Chinese market is on holiday due to the New Year celebrations and Indonesia has met its February requirements.
Since the beginning of the year, transactions globally have been limited as subdued demand set in to delivered markets. The current price environment which had been sustained by China’s continuous purchases of material towards the end of last year, has now stagnated as transactions have been limited globally. With China currently celebrating the Lunar New Year, many market participants are expectant of China’s purchasing behaviour following the celebrations as it could it have an impact in the prices globally.
For much of the current year Brazil has had limited demand. Still, appetite for sulphur was expected to pick up towards the end of January. This week prices were assessed higher as activity in the South American country has picked up as buyers progressively return to the market.
A recent CMOC tender was awarded at the low-to-mid-$190s/t CFR for FSU material, which has also assessed up the Baltic Sea price on an indicative basis to $165-175/t FOB. Despite the increase in activity in Brazil, sentiment is bearish as buyers expect prices to decrease as Q1 progresses.
Prices in Vancouver were also assessed up following indications that of the six recent purchases into Indonesia, at least one was Canadian-sourced material. The market is stable, according to participants. Canada also saw an increase in activity towards the end of last year as it provided cargoes into China, as did the Middle East.
Delivered prices into China were assessed flat with no activity. It was reported last week that local buyers were in no rush to procure fresh import cargoes. Additionally, offers reached the $190/t level following recent transactions into Indonesia, but this is higher than the $185/t CFR that Chinese buyers have indicated they are willing to pay.
Indonesia saw a flurry of transactions into the country have occurred at a level of $186-187/t CFR. Still, for this week, the market appears to have entered a quiet period with February requirements having been met and opting to wait for a fresh price signal from China. As a result, the market remains assessed at $180-187/t CFR.
Spot prices in the Middle East remained stable this week. The main delivered markets— India, China, and Indonesia—have slowed down its purchases. Up until now, the current price level was sustained by transactions to China at the end of last year, with activity shifting
