Market discussion has centred on Asian demand this week, with higher transaction levels in the region supporting global benchmarks.
Indonesia propped up the global market this week, with prices reaching $420-430/t CFR in the latest transaction and offers heard up to $440/t CFR. Upward price momentum is likely to continue with a number of buyers lacking the import licenses needed to shift from sulphur to sulphuric acid, according to market participants.
Although the phosphate export window has now closed, the bullish sentiment remains present in China with deals reaching as high as $420/t CFR in the south. Container sized material from Oman is understood to be offered at around $430/t CFR on the back of international supply disruptions and declining domestic port inventory. Domestically the price has also increased and is suggesting a price level around $408/t CFR.
In the Middle East, the Qatar Sulphur Price (QSP) was set $76/t above October levels but other monthly contracts by KPC and Adnoc were yet to be released as of the time of writing.
Still, the market has not seen benchmark prices at these levels since July 2022 at $428/t CFR. This, along with higher Asian deals, pushed prices in the Middle East to $400-410/t FOB this week.
The Brazilian market also saw an uptick in prices to $390-395t CFR, based on higher global levels. Despite the CMOC tender being scrapped last week following a single offer at $410/t CFR, offers this week emerged at $410-420/t CFR, but sales at these levels have not taken place, according to market members.
In the Mediterranean, tight availability alongside persistent demand supported price increases in both FOB and CFR bases. The price is bullish and further increases are expected on any new business, according to market participants.
Short-term outlook The global sulphur market is likely to continue to hold an upward trajectory in the short term amid general bullish momentum. Supply constraint from FSU, along with sustained Indonesia demand, will likely outweigh decreased interest from China, with the phosphate export window now closed.
