The sulphur market retained its upward trend this week although the latest transactions would suggest a slower pace to these increases. Still, demand from Asia in the coming weeks is expected to remain present which is likely to prevent price decreases until Q4 rolls in.
Sulphur prices rose in early September. Strong demand in China, Indonesia and North Africa, together with tighter supply from the FSU and Saudi Arabia and logistical constraints at Iran’s ports and on rail routes to Black Sea ports pushed the market higher. Since then, the price environment has been sustained by demand from phosphate producers in China and Indonesian purchases after a slow August.
Purchases by China have most recently focused on Middle East material, both mainstream and non-mainstream sources but non-mainstream material is facing logistical constraints. As a result, offers from the Middle East have kept increasing and are now reported at $330-340/t CFR. Still, although unverified, the latest reported transactions were below those levels. The price was left unchanged this week.
A buyer in Indonesia is understood to have purchased up to four cargoes of material at a price higher than currently published, setting the new price benchmark. Demand for sulphur has been constant throughout the month with both prices and offers keeping an upward trend. Industry sources expect demand to continue in the short-term but demand for sulphuric acid has also risen in the country which has prompted discussions in the market about buyer’s possibilities to switch, sources have indicated.
The upper end of the Middle East price range edged higher, supported by the latest sale into Indonesia. Regional offers for delivered sulphur to both China and Indonesia have now moved above $330-340/t CFR. Still, this week’s increase was more modest than the $5/t to $10/t week-on-week gains seen recently. With non-mainstream supply still constrained, industry sources expect buyers to keep sourcing from the Middle East for as long as Asian demand is present.
Prices in Canada were unchanged, but the price had registered week on week increases for the last month, keeping in line with increasing offers globally. More of the region’s material is expected to be traded to meet Asian demand but beyond that, at least two Brazilian buyers have enquired about the possibility of purchasing material from the region, according to market sources.
Sulphur prices in Brazil were also unchanged but sentiment there is bullish. At least two buyers are understood to be looking for Q4 shipments. Offers are currently above the newly published price range but transactions are yet to be completed, according to local industry Short-term outlook Global sulphur prices are likely to register increases in the coming weeks as buyers in Asia purchase material. Still, the number of transactions is likely to gradually reduce leading to a stabilisation period for sulphur prices towards early Q4.
