Global sulphur spot prices held steady this week amid minimal trading. Anticipation of a second round of phosphate export quotas in China spurred some buying there, while other global markets opted to wait-and-see with most buyers covered in the short-term.
In China, amid expectations of a second round of phosphate export quotas, the domestic price registered increases for most of the week until 16 July when it started to cool off. The current domestic price suggests a level around $283/t CFR, but the latest purchases of international material have stayed below the $280s/t CFR level. The price range narrowed this week on the lower end.
No transactions were reported into Indonesia this week with buyers able to hold off on purchases as they are covered through at least July, according to multiple market members.
The market is likely to hold off until clarity emerges on China’s new phosphate export quota.
Spot prices in the Middle East were assessed unchanged on the last transaction to take place into China. Availability is understood to be healthy in the region and despite the latest transactions, these purchases could represent specific circumstances and clarification regarding the volumes on the second round of phosphate export quotas will be key in defining a future price direction for sulphur, according to industry sources. Quarterly contracts settled at $239-265/t FOB.
The Mediterranean market is very quiet with buyers covered and very limited demand for sulphur. With no transactions reported this week, the prices were assessed unchanged. In the broader European region, molten sulphur quarterly contracts rose by $16/t from Q2.
In the Americas, prices in the US Gulf, Vancouver, and Brazil where assessed unchanged with limited activity taking place.
In Brazil, the latest CMOC tender which is scheduled to arrive at Santos during the second half of August, was expected to be sourced from FSU, but could instead be sourced from the Middle East, according to local industry sources, although this remains unconfirmed.
Demand in India has weakened and market indications are reflecting a decrease. Despite this, demand is not expected to return until around mid-august as inventory levels are understood to be sufficient, according to market participants.
Short-term outlook Global sulphur prices are likely to hold at broadly similar levels until clarity on a potential second round of phosphate export quotas in China emerges. With Indonesia mostly covered through at least July, they are likely to wait-and-see. Although China could enter the international market, their stock level is likely to prevent a demand surge for international sulphur.
