Sept. 7, 2016: Analysis of sulfur

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Sulfur Analysis Author/Source: Date: 2016-09-07 Clicks: 3 Insufficient demand from downstream sectors has led to a weak and stable market for sulfur; downstream factories are currently using up their inventory, with little enthusiasm for making purchases. Some manufacturers have inquired about prices, offering 715 yuan/ton for the pellets in the Yangtze River region, but no deals have been concluded as far as we know. 　　Regarding ports: The current sulfur inventory in China’s main ports is 1.73 million tons, of which 720,000 tons are stored at Nantong Port, and around 370,000 tons at Zhenjiang Port. Unloading from the port to the ships is progressing gradually, and there is an expectation of an increase in inventory in the future. Trade activity at the ports along the Yangtze River is sluggish; factories downstream are drawing down their inventory levels, there is little demand for purchases, and suppliers remain cautious, with few offers available. The reference price for bulk solids in the Yangtze River region is 725–730 yuan per ton. 　　The sulfur inventory in Fangchenggang is around 367,000 tons; the large factories in the southwest rely on their own inventory resources and do not engage in much spot purchasing. The reference price for bulk particles in Fangchenggang is 700 yuan per ton. There are not many reports regarding discussions with overseas buyers; the intended purchase price for the mainstream pellets by the southwest factory is below $85 CFR. 　　The sulfur inventory at Qingdao Port is around 80,000 tons; local factories consume this inventory after restocking. The demand for sulfur has declined recently. The reference price for powdered sulfur at Qingdao Port is 640–650 yuan per ton, with prices being determined through actual transactions. Red Sun A’Kang Chemical plans to begin a one-month plant maintenance campaign in October, with the sulfur-based sulfuric acid production facility set to be shut down entirely during this time. 　　Market forecast: Downstream factories make purchases as needed, the trading atmosphere is moderate, and suppliers tend to wait and see for now. In the absence of any other market developments, the sulfur price is likely to remain stable with little change. (China Agri-Media)