Sulphur prices advanced further in the Middle East, despite limited activity in China and Indonesia, on increased buying in India and as the global market turns bullish due to the restricted availability of FSU material.
Prices in the Middle East advanced this week on the latest transactions into India. Although offers for the region’s material into China and Indonesia have increased to levels in the $360s/t FOB, these markets have not committed to transactions at these levels.
Monthly prices were released this week at $324/t by Adnoc and $325/t by KPC, while Q4 contracts have been settled at higher levels, including contracts for delivery into Brazil, which have been negotiated to cover the lack of FSU material in the market.
A number of transactions in India are reported as having taken place at higher price levels than previously published, although a single offer of material at an even higher level was heard on a tender but it was rejected leading to a retendering process, according to local market participants.
In China, the market registered limited activity this week due to Golden Week holidays but as activity resumed on 9 October, indications received points towards resistance to current Middle East offers. The benchmark was left unchanged this week.
Indonesia also experienced limited activity although not as a result of holiday but as buyers in the country have displayed a degree of push back to the current price levels. Some are understood to even be considering maintenance periods or purchasing sulphuric acid instead although import license requirements are unlikely to be met by all buyers thus lending support to higher offers into the country, according to market participants.
Prices in Canada were unchanged this week and activity was limited. Brazilian buyers are still enquiring in the region although short-term demand appears to be covered, according to market sources.
In Brazil prices were also unchanged but the latest price increases came as demand purchased Canadian material due the tightness of FSU material and trade uncertainty between the South American country and the US. Notably, Q4 contracts between Brazil and the Middle East have now been concluded.
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.
