The sulfur market remains in a state of consolidation, with downstream factories making occasional purchases

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The sulfur market remains in a state of consolidation; downstream factories make occasional purchases. Author/Source: Date: 2017-01-05. Clicks: 17. On Wednesday (January 4), the sulfur market continued to show signs of consolidation, with downstream factories making sporadic purchases, and trading activity at ports remained subdued. The contract prices in the UAE for January have been announced, with an increase of $4 to $92 per ton FOB; the equivalent CIF price in RMB is higher than the current port prices, providing some support for spot markets. 　　The daily sulfur production at the Puguang gas field has increased to around 6,300 tons. Due to issues with the West-East Gas Pipeline, there is a shortage of natural gas supply; as a result, Puguang has increased its production to make up for this shortfall. This month, 90,000 tons are planned to be shipped to Wanzhou Port. 　　Regarding ports: According to BaiChuan’s statistics, the current sulfur inventory in China’s major ports is 1.55 million tons; the inventory at Nantong Port is 550,000 tons, while that at Zhenjiang Port is around 335,000 tons. Some of the sulfur that was unloaded from ships at the end of last month has been included in these inventory figures. The reference price for bulk granular goods at Yangtze River ports is around 890 yuan per ton. Smaller factories downstream make occasional replenishments, while larger manufacturers continue to transport goods in order to use up their inventory. 　　The sulfur inventory in Fangchenggang is around 438,000 tons. A large volume of shipments arrived at the southwest factory at the end of last month, leading to an increase in inventory at the port. The spot trading atmosphere in Fangchenggang is sluggish; the reference price for bulk particles is 900 yuan per ton, with prices remaining on hold. 　　The sulfur inventory at Qingdao Port is around 68,000 tons. The reference price for powdered sulfur at the port is 820 yuan per ton, while the reference price for granular sulfur is around 860–870 yuan per ton. The intended purchase prices from downstream factories are low, resulting in a sluggish trading atmosphere. 　　Future outlook: Demand from downstream sectors remains weak, prices for sulfur sold at ports are average, and there are no additional market developments to guide decisions in the near term; as a result, traders are not very active, and sulfur prices will continue to remain stable. (Bai Chuan)