Sulfur market trends on July 8
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Market dynamics: Today’s spot market saw light trading, with traders making only occasional inquiries. Possibly influenced by the decline in commodity prices, the price of sulfur on electronic trading platforms dropped. Traders in the spot market showed a slight increase in willingness to sell; the price for granular sulfur along the Yangtze River is around 1270 yuan per ton, with few offers available. The reference price ranges between 1265 and 1270 yuan； Inventory levels in the Qingdao market are low. The price for small bags of sulfur granules is around 1,350 yuan per ton, while prices negotiated are around 1,310 yuan per ton. For small orders of sulfur in block or powder form from Japan and South Korea, the price is around 1,240 yuan per ton ； Spot prices in South China remain stable, while overseas negotiations show an upward trend; the spot price is around 1,260 yuan per ton. Attention should be paid to Saudi Arabia’s official pricing for August as well as the progress of purchases by downstream users. Overseas market: UAE’s ADNOC announced its official selling price (OSP) for sulfur exports in July 2015 at $150 per ton FOB Ruwais Port, an increase of $5 compared to the previous month; this translates to around $165 CFR, which is approximately 1,254–1,255 yuan per ton when calculated using an exchange rate of 6.21. Qatar’s official sulfur price in July is FOB 149 US dollars per ton, up by 8 US dollars compared to the previous month; this corresponds to 1,246–1,247 yuan per ton at an exchange rate of 6.22. Saudi Aramco has raised the official price for July 2015 to FOB 144 dollars per ton, an increase of 2 dollars compared to the previous month. The equivalent CFR price in China is 159–161 dollars per ton, which is approximately 1,215 yuan per ton at an exchange rate of 6.21. For the 25,000 tons of granular sulfur that Reliance in India bid on on July 6, the winning bid price is reported to be around $156–157 per ton FOB, which translates to approximately $170–171 per ton CFR, showing a clear upward trend. Sinopec Puguang: The sulfur production at Sinopec’s Sichuan Puguang gas field amounts to 3,500 tons per day; the plant operates at 58.3% capacity. The price for solid, liquid, and gaseous sulfur products at the Puguang purification plant in Dazhou is 1,210 yuan per ton ； The shipping rate at Wanzhou Port is 1,250 yuan per ton, with an increase of 20 yuan on the 19th ； The solid inventory in Dazhou is 35,000 tons, while the inventory in Wanzhou is 13,000 tons. Inventory in ports: The domestic sulfur inventory is 949,000 tons, of which 610,000 tons are stored in the three ports along the Yangtze River, and 262,000 tons are in the three ports in South China. The details are as follows: 320,000 tons in Nantong, 250,000 tons in Zhenjiang (excluding containers and goods in free trade zones), 40,000 tons in Nanjing, 103,000 tons in Fangcheng, 45,000 tons in Beihai, 110,000 tons in Zhanjiang, 65,000 tons in Qingdao, and a small amount in Longkou. Current overseas prices in the Middle East are at a high level of 160 dollars; attention is paid to the official prices to be announced by Saudi Arabia in August. The sulfur inventory at Nantong Port is 320,000 tons. Some offers are at 1,280 yuan per ton, while some transactions are being conducted at 1,270 yuan per ton ； Wanzhou granules: 1,250 yuan; Wanzhou inventory: 12,000 tons ； The supply of block flour is concentrated, resulting in a noticeable price increase. The latest figure for sulfur stock at Fangchenggang Sulfur Port is 107,000 tons, with shipments of 5,000–10,000 tons per day. In stock, Yuntianhua has around 60,000 tons, Xiangfeng has about 40,000 tons, and Sinochem has roughly 30,000 tons. Few transactions are taking place at the ports currently; the price for granules is around 1,250–1,260 yuan per ton. Downstream buyers usually purchase according to their needs. On July 3, 16,500 tons from Yuntianhua and Formosa will arrive at the port, and on July 9, an estimated 50,000 tons of powdered material from factories is set to arrive. The mainstream prices in the Middle East market are around CFR 160 per ton, indicating an upward trend in prices in the international market. There is 65,000 tons of sulfur available at Qingdao Port and Sulfur Port, with inventory levels remaining low. The quoted price for granular sulfur in Quanzhou is 1,350 yuan per ton, while the actual transaction price is slightly lower at 1,320 yuan per ton. The quoted price for block-shaped sulfur from Japan and South Korea is 1,250 yuan per ton; the actual price for such sulfur is 1,240 yuan per ton. In Turkmenistan, the price ranges from 1,210 to 1,220 yuan per ton. In July, the spot price of USD for Japan and South Korea was around $160–$165. Electronic board: Opening price for today’s sulfur S1509 contract: 1,255 yuan/ton. Highest price: 1,260 yuan/ton; lowest price: 1,240 yuan/ton. The closing price was 1,240 yuan/ton. Volume of trades: 5,442 lots. Total orders placed: 11,772 lots. Source: PEC Information Network: http://www.pecinfo.net/newscenter/detail-700000-2015070800463.shtml
Sulfur: Market in a state of slight tension; upward trend is slow. Author/Source: China Fertilizer Network. Date: 2015-07-10. Clicks: 3. [Updates on sulfur at ports] Report from July 8, 2015: Market in a state of slight tension; upward trend is slow. At the ports, the market in Qingdao Port showed stability today. Traders at the port had little desire to sell their goods, while there was no significant demand from downstream users as well. With limited supply, prices remained stable; the price of sulfur in block form was 1,230 yuan per ton, while the price of granular sulfur stayed at a high level of 1,320 yuan per ton. Currently, merchants in this region are clearly holding prices high; there is little possibility of a decline in the market in the short term. Whether there will be an upward trend depends on whether southern ports can play the same role as before in driving market activity. The market at the Yangtze River Port is showing a stable trend today. With no active buying activity from large manufacturers downstream, the purchasing behavior of a few small enterprises, which is driven by their own needs, is not sufficient to drive an overall upward trend in the market. Today, the price of granules at the port is around 1270 yuan per ton, and there are no clear updates regarding trading activities; the price of blocks and powder is 1230 yuan per ton. In terms of inventory, the shipment of block powder that arrived at Nantong Port recently is still being unloaded; there is 320,000 tons in the port. There are no significant changes at Zhenjiang Port, which remains at 270,000 tons. The Fangchenggang market stabilized today, with inventory at 127,000 tons. It is reported that the port plans to receive a ship carrying 50,000 tons of granules this weekend, which could lead to an increase in inventory levels. The price of particles in the port is 1,270 yuan per ton, while the price of lump powder is 1,220 yuan per ton. At Sinopec, the selling price at Puguang Wanzhou Port is 1,250 yuan per ton; the current inventory is around 12,000 tons, and shipments are now being restricted. It is reported that due to reduced production at the factory, the monthly volume of resources arriving at Wanzhou Port remains around 30,000 tons. The selling price at the factory today is 1,210 yuan per ton, with an inventory of around 45,000 tons at present. Analysts believe that on Wednesday, the domestic sulfur market did not continue to rise steadily as previously expected, showing a tendency to return to a stable state. Supported by the strong performance of overseas markets and consistently low inventory levels at ports, traders have clearly shown a tendency to push prices upward. However, downstream factories have not responded in kind; the prices they are willing to pay differ from those offered by suppliers, which has led to a confrontational atmosphere in market transactions. As a result, the market has failed to rise and has returned to a state of consolidation. The price of granules at the Yangtze River Port is 1,270 yuan per ton, while the price of lumps and powder is 1,230 yuan per ton. There is no significant variation at the Qingdao Port, with the price of lumps and powder also at 1,230 yuan per ton; the price of small-packaged granules remains at 1,320 yuan per ton. The current market is encountering some resistance on its upward trajectory; the determined attitude of suppliers contrasts with the cautious approach of larger companies. However, traders are generally unwilling to sell at low prices, and coupled with the interest from smaller factories downstream, the market’s upward trend, though slow, will not change in the short term. 【Downstream Product Market Trends】 Sulfuric acid: The domestic sulfuric acid market showed slight fluctuations today. Affected by the tight supply in the raw material market, some manufacturers in the East China region have adjusted the price of acids recently. A few manufacturers in Shandong have raised the price of sulfuric acid by around 20–40 yuan per ton. Small acid-producing enterprises that had ceased operations in this region have restarted production; Xinhua Pharmaceutical will resume operations this Friday, while Hongri has already started production on Monday. Currently, the price of 98% sulfonic acid in this region is 440–470 yuan per ton. Currently, enterprises in regions such as East China, Central China, North China, and Northeast China are undergoing maintenance work. Markets in other regions are operating steadily, manufacturers are shipping goods as usual, and the acid value remains stable for now. The upstream sulfur market saw a slow upward trend, with purchases being made based on demand; there were no significant changes ； With a combination of domestic sales and exports of phosphate fertilizers in the downstream market, companies are able to ship their products smoothly, and the overall trading atmosphere is positive. It is expected that in the short term, the domestic sulfuric acid market in certain regions will continue to experience narrow-range fluctuations. Phosphatic ammonia: On Wednesday, the phosphatic ammonia market maintained a stable trend, with prices continuing to rise steadily. The situation of tight supply and high prices for monoammonium continues; the amount of goods scheduled for domestic sales remains high and will not be delivered until the end of July or August. It is difficult to establish new price levels, so transaction prices remain at the previous levels. Currently, the mainstream ex-factory prices for 55-grade powder and granules in East China’s Shandong, Jiangsu, and Anhui provinces are 2150–2200 yuan per ton, while the price for 58-grade powder is 2350 yuan per ton; prices are subject to negotiation on a case-by-case basis ； The international price of granules is not favorable, and the previous orders have been largely completed. Diammonium is mainly shipped to ports for international sales; domestic trading is sluggish ； For Enterprise 64, the newly signed international orders are priced at 465–475 US dollars per ton, representing a favorable international price level that continues to support stable domestic sales. The standard ex-factory price for Enterprise 64 is 2680–2750 yuan per ton, and the market outlook for the domestic market in autumn is positive.