Sulphur prices have risen globally as delivered markets adjust to increasing prices in supplying regions.
The current global sulphur price environment, characterised by steady demand from Indonesia, rising prices for delivered material to China, and supply from the Middle East and Canada, has seen prices increase in other regions to adjust to current market conditions.
This week a number of transactions that do not meet CRU’s methodology specifications for inclusion in the weekly assessment took place around the world. The main characteristic was in the purchased volumes as buyers opt to enter the market by reducing quantities and wait until they achieve a better position in the market.
The latest QatarEnergy tender is understood to have been awarded at $282.50/t FOB level, according to multiple market sources. Although the destination remains unverified, this level would place delivered prices into China and Indonesia around $300/t CFR.
China opted to instead purchase material from Turkmenistan at a level in the $270s/t CFR.
The price widened to $270-280/t CFR on upward pressure as prices in its favoured supplying regions increased but also the domestic port stock price is suggesting a delivered price around $290-291/t CFR.
No transactions meeting CRU’s methodology were reported into Indonesia, but it is understood that a recent 15,000 t Formosa Petrochemical Corporation tender was awarded at $280/t FOB and is bound for the Asian country, according to market participants.
In Brazil, prices rose significantly as a number of transactions were reported as occurring at the $280/t CFR level. Additionally, another transaction was reported at around $292/t CFR for 13,000-15,000 t which does not meet CRU’s methodology.
Along with the price increase in Brazil, the US Gulf, its primary supplying region, saw its price increase significantly. The market had been experiencing subdued demand, but with the return of demand in Brazil, the US Gulf FOB price adjusted.
Upward pressure is being felt by other delivered locations despite weakened demand and the limited number of transactions into those countries. Delivered prices to India increased as offers from the Middle East push any future purchases to compete with the levels seen in Asia.
Although the price assessment for Brazil remains flat, the market is bullish and the price is likely to change soon as a transaction from US Gulf into Brazil was suggested as taking place at the $270-280/t CFR level, according to market participants, but this could not be verified at the time of writing.
