November 2, 2016: Analysis of sulfur prices – Sulfur prices remaining stable at high levels

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Sulfur Analysis: Sulfur prices remain stable at high levels. Author/Source: Date: 11-02-2016. Clicks: 12. On Tuesday (November 1), sulfur prices stayed stable at high levels; port holders maintained a firm stance, while downstream factories made occasional inquiries for purchases, making it difficult to acquire sulfur at low prices. Sulfur prices at domestic refineries have risen as well; today, prices in the riverine areas and the Northeast region increased by around 20-30 yuan per ton. SABIC raised the contract price in November by $5 to $83 per ton FOB, which translates to an CIF price of 843 yuan per ton (based on a freight cost of $16 per ton, an exchange rate of 6.8, and port charges of 40 yuan per ton). 　　Regarding ports: The current sulfur inventory in China’s main ports is around 1.7 million tons, of which 820,000 tons are stored at Nantong Port. A ship carrying 50,000 tons of granular sulfur from North America is still being unloaded, with completion expected by tomorrow; this amount has already been included in the inventory ； Zhenjiang Port has a stock of around 365,000 tons; yesterday, a ship carrying 45,000 tons of Saudi granular sulfur arrived at the port, but this amount has not yet been included in the inventory. Trading conditions for sulfur at the Yangtze River ports remain sluggish, with suppliers being reluctant to sell their stock. The price of granular sulfur in bulk is 900 yuan per ton, while today’s reported transaction prices range from 880 to 885 yuan per ton. 　　The sulfur inventory in Fangchenggang is around 270,000 tons; the southwestern factory is using up these inventory resources, and the situation regarding shipments in the future remains unclear for now. The spot trading market in Fangchenggang is sluggish; the reference price for bulk particles is 750 yuan per ton, with few deals being finalized. An upcoming conference on phosphate fertilizers is set to take place, and industry participants are paying attention to information regarding fertilizer export policies during the conference, as well as to overseas transaction trends. 　　The sulfur inventory at Qingdao Port is around 78,000 tons. The sulfur resources in this port are relatively scattered, and suppliers maintain firm pricing. The reference price for lump and powdered sulfur is 800–820 yuan per ton, while the reference price for granular sulfur is 860 yuan per ton. Downstream factories purchase sulfur based on their needs, and there is little fluctuation in the trading market. 　　Market forecast: Contract prices for sulfur in the Middle East are being finalized one after another; when converted into RMB, these prices are lower than those of current spot prices at ports. However, there is limited supply from international markets, making it difficult to replenish stock. Currently, suppliers holding sulfur are holding their prices and waiting to see what happens, so it is expected that the sulfur market will remain in a state of sideways consolidation for now. (China Agri-Media)