Sulphur prices advanced further in Asia and the Middle East as the Chinese market enters a weeklong period of limited activity due to the Golden Week celebrations. Meanwhile, buyers in Indonesia are resisting current price levels.
Last week, prices in the Middle East increased as the latest QatarEnergy tender was awarded at $333/t FOB, according to market sources. This week, the price range consolidated on the $320s/t FOB level in the latest transaction into China. Still, a degree of uncertainty remains present, as although QatarEnergy has set its October QSP at $324/t FOB, Adnoc and KPC are yet to release their monthly contract prices.
In China, the market had been registering limited activity into Yangtze River ports but buyers in Southern China had kept purchasing material. With the market headed into a period of limited activity due to Golden Week holidays, the last transaction, which involved Middle East material, is understood to have taken place around $345/t CFR, increasing the benchmark this week.
Indonesia registered limited activity this week but offers have moved up and are now also in the $340s/t CFR, with prices below this considered unviable by the global market. Still, buyers have signalled their intention of switching to sulphuric acid or putting operations into maintenance as a response to the current sulphur price level. Offers of material as high as $360/t CFR were heard this week but could not be verified.
Prices in Canada were unchanged this week, but their current level has been sustained by the tightening of FSU material, which has prompted enquiries from Brazilian buyers. At least two transactions have taken place in the last month, and more are expected to be closed shortly, according to local market participants.
Prices in Brazil have risen on transactions involving Canadian material. Tight FSU supply and the risk present in trading with the US have boosted interest in sourcing sulphur from Canada, according to industry sources. While Canadian availability is ample, Brazil will likely have to compete with other delivered markets to remain an attractive destination, though local industry sources points towards Canada also having to compete with other regions to meet Asian demand
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.
