Sulfur Analysis: The sulfur market remains in a state of consolidation

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Sulfur Analysis: The sulfur market remains in a state of consolidation. Author/Source: Date: 2016-11-24. Clicks: 4. On Wednesday (November 23), the sulfur market continued to show no significant changes; trading activity at ports was sluggish, and the price of bulk sulfur particles in the Yangtze River region remained stable at 880 yuan per ton. Domestic refineries maintain stable shipments, and prices at refineries in Shandong rose today. 　　Regarding ports: According to BaiChuan’s statistics, the current sulfur inventory in China’s major ports is around 1.53 million tons; the inventory at Nantong Port is about 670,000 tons, while that at Zhenjiang Port is 355,000 tons. The reference price for bulk particles in the Yangtze River region is 880 yuan per ton. Suppliers are in a fairly positive mindset, and downstream factories make purchases as needed; thus, the trading atmosphere is average. Currently, sulfur prices at ports are high, increasing the risks for speculators entering the market; therefore, a wait-and-see approach is being adopted for now. 　　The sulfur inventory in Fangchenggang is around 310,000 tons. The southwest factory continues to consume this inventory, and the atmosphere for spot trading at the port is weak; there are currently no reference prices available for trading. Recently, shipments from two shipbuilding factories are scheduled to arrive, and inventory levels are expected to rise. 　　The sulfur inventory at Qingdao Port is around 77,000 tons. The operating rates of downstream factories are not high, so purchases are made as needed; thus, the trading activity at Qingdao Port remains moderate. The price of powdered sulfur at ports is 850–860 yuan per ton, with a reference trading price of around 840 yuan per ton. There is little information available regarding prices for granular sulfur, and the reference price is 880–900 yuan per ton. 　　Future outlook: Downstream factories begin to use up their inventory after restocking, and speculators’ willingness to push prices higher weakens, leading to a slowdown in port trade activity ； In November, the arrival of sulfur at ports was limited, leading to a decline in inventory. Coupled with strong prices in the international market, suppliers were unwilling to sell at low prices, so sulfur prices remained stable. (China Agri-Media)