Demand in Asia has sustained a month-long bull run in the sulphur market. Last week purchases in Indonesia pushed prices higher and this week, after two weeks of inactivity, China committed to two transactions at a higher price level with transactions also recorded into Indonesia and India.
The sulphur price environment has recently risen as in addition to the demand in China and North Africa, supply has tightened as a result of limited supply of FSU and Saudi Arabian material as well as logistical constraints in both Iranian ports and railway capacity to Black Sea ports.
After two weeks of limited imports, two higher-priced purchases were concluded this week in China. The upward trend is being supported by phosphate producers, who have kept operating rates relatively high, and by replenished port stocks. Domestic prices are around $316/t CFR, with production expected to remain high in the coming weeks, sulphur demand is unlikely to ease until the end of the month when the autumn application season ends.
At least one transaction was concluded into Indonesia this week with the price range increasing slightly as a result. Last week a total of around five full size cargoes were transacted and demand is expected to be relatively constant in the short-term. Still, these most recent purchases could be connected to the slower-than-expected purchasing activit during August in which operations were affected by a monsoon season, according to market participants.
Prices in the Middle East have risen as a result of Asian demand but although at a lower pace, the sentiment remains bullish. Availability in Saudi Arabia tightens during the summer months but in addition to this, industry participants indicate that a number of alternative sources such as Iran, the Baltic Sea and the Black Sea are experiencing limited availability and/or logistical constraints at ports. This has redirected demand towards the Middle East, putting upward pressure in prices.
In Canada, the price has moved up in line with the global bullish sentiment. Although transactions into Asia have been limited in the last two weeks, the region was previously instrumental in meeting Asian demand. Still, market participants consider that the tariff situation between Brazil and the US Gulf may cause Canadian material to be transacted into Brazil with at least one purchase already concluded.
India saw activity this week in at least one purchase at a higher level. Although a transaction at higher prices than currently published was heard, it could not be verified at the time of writing. India’s sulphur market has entered a bullish phase, with offers moving higher on tightening availability and competition from regional buyers. Offers are now quoted in the mid-$330s/t CFR, according to industry sources.
