Several benchmark sulphur prices recorded increases this week as global markets react to strengthening demand in Asia. Imported sulphur values rose in China and across most supplying regions.
The Mediterranean experienced the most pronounced movement, with prices rising by approximately $20/t following recent tender activity. In contrast, prices held steady in the Middle East and Indonesia.
Import prices in China increased as activity picked up after around three weeks of limited transactions, with deals reported around the $310-315/t CFR level. Domestic prices had been rising, reaching levels suggesting $310/t CFR last week, as discussions about export quotas kicked off. Still, domestic activity slowed this week as the market awaited final confirmation of the quotas, causing prices to decrease to RMB2,570-2,600/t FCA, or about $308/t CFR. Import transactions are expected to rise once the quotas are finalised, though the current domestic stockpile of 2.06 Mt may limit the upside for international prices.
Sulphur prices in Vancouver have also risen, with at least one transaction of Canadian material bound for China, according to local market participants. Since late last year, the region has been a key supplier to meet growing demand in Asia, and the market remains optimistic about the potential for increased demand from China.
The Middle East recorded stable prices on at least one reported sale of material to China.
While the region has consistently supplied China, the recent slowdown in Chinese purchases has made Indonesia its predominant delivery location. The flow of material from the Middle East to China, although likely to increase as demand increases, will depend on China’s willingness to buy at current price levels or instead opt for Canadian material, and on whether Indonesia, whose delivered price was assessed unchanged this week, is willing to compete for volumes.
Prices in the Mediterranean on both FOB and CFR bases increased by around $20/t as a result on a number of tenders being awarded. The market has had consistent demand across the region while supply has been tightening further. The price remains slightly bullish although trading activity could slowdown if the latest tenders covered enough demand, according to market sources.
In India, the range narrowed to $300-310/t CFR from last week’s $290-310 despite limited activity and subdued demand as offers firm, putting pressure on the market to compete with other delivered locations. Although buyers are likely to re-enter the market in the coming weeks, the force with which they do so is underpinned by a cautious sentiment and monitoring supply availability, according to market members.
