Sulphur prices in Asia and the Middle East advanced this week. The markets had remained relatively quiet as the week began but turned bullish by Wednesday due to the latest bids on the latest QatarEnergy tender.
The Middle East, China and Indonesia benchmarks are now at their highest level since the week of 14 July 2022.
Prices in the Middle East rose this week on bids for the latest QatarEnergy tender. The final award price could not be confirmed at the time of writing, but it is understood that most bids sat at $320-330/t FOB, with at least one slightly higher setting the week's top end. Market attention now shifts to the region’s monthly prices, but prices in the $310s/t FOB are no longer viable, according to multiple market sources.
Most markets are still to adjust to the latest Middle East price moves, but China was quicker to price them in. Domestic prices decreased early in the week but snapped back once the higher Middle East levels surfaced. Current port stock prices suggest a delivered price around $320/t CFR, a price lower than the latest transactions which have been driven by buyers in Southern China, while on the Yangtze River, buyers have taken a more cautious approach to the import market.
Following last week’s purchases by Huayou, QMB, and GEM, no transactions were reported into Indonesia this week, leaving the price unchanged. A slow August turned into an uptick in activity during September. A number of buyers in the country are understood to be considering purchasing sulphuric acid instead but the switch is not immediate and carries broader implications such as in the production and reutilisation of exothermic energy generated in the sulphur burning process, according to industry sources.
Prices from Canada have moved up this week. The price is bullish, and activity is expected to increase as prices in the Middle East move higher making Canadian material more attractive. No transactions out of Vancouver were reported this week, but additional enquiries by Brazilian buyers have supported increasing offers.
In the Mediterranean, prices also advanced with availability reported as tight. Prices in the region could increase further in upcoming tenders, according to industry sources.
Additionally, a drone strike affecting the Astrakhan gas processing plant in Russia is being closely followed by members of the market as supply could tighten further and put upward pressure in prices. The situation is evolving and any possible repercussion on the market is yet to materialise.
Short-term outlook Global sulphur prices could register increases in the coming weeks but at a slower pace as resistance to current price levels increases in Indonesia and demand for phosphate fertilisers decreases in China. Leading to the number of transactions gradually reducing and introducing a stabilisation period for sulphur prices towards early Q4.
