Sulphur prices advanced further this week as transactions into Indonesia and China reached the $400/t CFR price level. Still, offers from the Middle East promptly advanced further supported by the award of the latest QatarEnergy tender.
A transaction into Indonesia is understood to have taken place at $400/t CFR late last week.
Demand is expected to continue through November but activity this week was limited, according to market participants. Prices are expected to remain on an upward trend supported by a number of buyers that are understood to not have the import licenses required to switch to sulphuric acid.
Similarly, a transaction into Southern China is understood to have taken place at the same price level of $400/t CFR earlier in the week but since then demand has remained muted.
With the phosphate export window now closed, demand is expected to be reduced and indeed, limited activity has been seen into Yangtze River. Still, any future import business in the short-term is likely to take place at higher price levels, according to industry participants.
Offers of Middle East material into both China and Indonesia are understood to now be around the $340/t CFR price. This price level is supported by the latest QatarEnergy tender which was indicated as awarded above $400/t FOB. Still, market participants consider that transactions are likely to remain limited until the Middle East monthly prices are released next Beyond the award of the QatarEnergy tender, the most recent Middle East transactions took place at prices around $20/t lower setting this week’s price benchmark level.
Prices in Brazil increased on the back of the latest transaction of USG material but earlier in the week a CMOC tender is understood to have received a single offer of material at a price above $400/t CFR. The tender was reportedly scrapped with negotiations post-tender also falling through, according to industry sources, although this could not be verified at the time of writing.
The bullish sentiment is present even in markets where activity has been limited recently.
The Mediterranean prices were assessed unchanged this week, but the market awaits the results of Lybia’s NOC tender due to be awarded on Monday although market participants anticipate prices to increase in line with the global sulphur price environment
Short-term outlook Global sulphur prices are likely to retain a bullish sentiment in the coming weeks. Although demand in China is likely to decrease with the phosphate export window now closed, demand in Indonesia is expected to be present through the end of year while supply of FSU material is also likely to remain constrained in the short-term.
