Weekly Sulfur Review: Port sulfur prices rebound

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Weekly Sulfur Review: Port sulfur prices rebound Author/Source: Date: 2016-12-02 Clicks: 20 Major downstream factories made concentrated purchases this week, driving up port sulfur prices； The increase in contract prices in the Middle East also boosted market sentiment, breaking the stagnant situation at ports; the price of bulk grains in the Yangtze River region rose from 870 yuan per ton at the start of the week to 900 yuan per ton this week. Domestic refinery sulfur shipments are satisfactory, with little inventory pressure; prices rose this week in line with those at the ports. 　　Chinese port market As of this Thursday, sulfur inventory at China’s major ports is around 1.5 million tons. An increase in ships is expected in December. 　　Yangtze River ports: Nantong Port currently has a sulfur inventory of 670,000 tons, while Zhenjiang Port has 330,000 tons. At the beginning of the week, downstream factories inquired about purchases, with purchases concentrated at the main factories in Hubei Province (with a total transaction volume of over 100,000 tons). The selling price of bulk granular sulfur at the ports was around 875 yuan per ton. This round of restocking boosted market activity, and suppliers became more reluctant to sell, pushing up the price of granular sulfur to 890 yuan per ton. At the end of the month, the contract prices in the Middle East were announced; the CIF price in RMB was around 920 yuan per ton, which is higher than the spot prices at ports. This has boosted market sentiment, with an increase in inquiries from downstream traders. It is not easy to replenish stock of granular sulfur at a price below 900 yuan per ton. On the export side, following the announcement of prices for contracts in the Middle East, a few offers have been made; the prevailing price for granules destined for the Middle East is $110 per ton CFR, with no clear information available regarding actual transactions. 　　The sulfur inventory in Fangchenggang is around 300,000 tons, mainly supplied to factories; local manufacturers consume this inventory, resulting in a sluggish atmosphere in terms of spot trading at the port. The Southwest factory offers relatively low purchase prices for overseas orders, and there is little information regarding negotiations. 　　The sulfur inventory at Qingdao Port is around 74,000 tons. Factories in Shandong Province are not operating at full capacity, so purchases are made based on actual demand. There are little fluctuations in the prices in the port trade; the reference price for lump and powdered sulfur is 840–850 yuan per ton, while the reference price for granular sulfur is 880–900 yuan per ton. This week, there were no inquiries or purchases from fertilizer manufacturers in the Shandong region. Henan’s titanium dioxide manufacturers currently have no new orders, while traders continue to ship out previous orders. 　　The sulfur inventory at Jingang Port is 17,700 tons; the repatriation of sulfur by factories in the Tangshan area is slow, so there is little change in the inventory level. The sulfur inventory at Longkou Port is around 4,000 tons, mainly consisting of liquid sulfur for use by factories. 　　Domestic sulfur market This week, the ex-plant prices of domestic sulfur continued to rise, with tight supply playing a significant role in supporting the market. 　　The ex-factory price of sulfur in the southwest region has increased by 10–20 yuan per ton; currently, the prevailing transaction price for solid sulfur is between 830–890 yuan per ton, while that for liquid sulfur is 830 yuan per ton. Local manufacturers are operating at low capacity levels. Due to limited supply in recent times, downstream companies in the vicinity continue to make steady purchases, resulting in low inventory levels for these manufacturers and a relatively high bullish sentiment. 　　Sulfur supply in the Shandong region is somewhat tight; some local refineries continue to be under maintenance and operate at reduced capacity, selling their products as they are produced. The inventories of Sinopec’s subsidiaries remain at moderate to low levels, and shipments are proceeding smoothly. This week, the ex-plant price of sulfur was increased by 30–50 yuan per ton, representing a significant rise. The ex-factory price of sulfur fixation products has risen to 880–950 yuan per ton, representing the highest price for domestically produced goods. 　　The ex-factory price of sulfur in the East China region has generally increased by 20–30 yuan per ton this week. Jinling Petrochemical and Zhenhai Refining & Chemical operate at reduced capacity, while downstream manufacturers in the surrounding area are actively making purchases. Local sulfur producers see stable sales and remain optimistic about market conditions. 　　The ex-factory prices of sulfur in North China, the Northwest, and Northeast China also rose, by 20–40 yuan per ton. This week, manufacturers maintained a stable level of shipments, with those in North China keeping prices at moderate levels. There is a limited supply from manufacturers in the northwest and northeast regions, so there is little pressure to ship goods, and purchases by local enterprises remain relatively stable. 　　The ex-factory price of solid sulfur from manufacturers in the riverine areas remains stable at 800–810 yuan per ton. As port prices have been relatively stable recently, there are no significant changes in the pricing offered by manufacturers in these areas. Currently, manufacturers are shipping products at a steady pace, with no significant increase in inventory. 　　Future outlook: After the major downstream factories restock, they will use up their inventory through shipments, and large-scale purchases by these factories will temporarily come to a halt. Recent trade activities at the ports are mainly driven by traders replenishing their stocks or reselling goods. Rising prices of sulfur on the international market have provided support for domestic spot prices, and speculators’ sentiment has improved; it is expected that sulfur prices will continue to rise. More ships are expected to arrive at the ports in December, and attention should also be paid to changes in port inventory levels in the coming period. (Bai Chuan)