Sulphur prices in export regions rose this week, but uncertainty persists over where these volumes will be placed. With reduced demand in major buying markets, the price increase may struggle to gain momentum. Still, higher FOB prices may rest on a potential demand boost in Asia, driven by updates on phosphate export quotas in China and/or sustained demand in Indonesia.
Despite rising prices in supplying regions, delivered sulphur prices into Asia have remained stable, with weak international demand in China and Indonesia refraining from further purchases after last week's transactions.
Indonesia is a likely candidate to absorb those volumes, though recent price increases in the Middle East would imply a delivered price of around $320/t CFR. Over the past month, Indonesia has avoided paying $300/t FOB for material, though it came close. After several purchases into the country last week, no further international material has been bought since.
The same applies to China, where no fresh imports were reported this week. With domestic prices indicating a delivered level of around $300/t CFR, still below current Middle East FOB prices, there is little incentive for buyers to purchase internationally. Still, demand for sulphur could rise if market rumours about an upcoming phosphate export quota announcement prove correct.
In the Middle East, the latest market transaction was the award of the Qatar tender within the newly published range of $300-305/t FOB, with a Kuwait tender also believed to have been awarded within this range, according to market participants. The trend seen last month, where monthly prices are set lower than the latest tender, continued this month, with QatarEnergy setting its May price at $285/t FOB and Kuwait posting its KSP price at $286/t FOB, both reflecting an increase of $8-10/t from the previous month.
The price range for sulphur into Brazil has widened, with a recent CMOC tender said to be awarded below the previously published price. The material is understood to be sourced from the Baltic Sea region, prompting price indications to be adjusted accordingly for that region too.
The Vancouver and US Gulf FOB prices were also indicated slightly higher as the markets adjusted to the global bullishness across supplying regions, although transactions from these regions remained scarce.
Adnoc's OSP for May emerged late 1 May at $290/t FOB, up $10/t month on month, and the change will register next week.
