argus fmb sulphuroct 11, 2012 · argus fmb sulphur formerly fmb weekly sulphur report issue 12-41...

Copyright © 2012 Argus Media Ltd

Argus FMB SulphurFormerly FMB Weekly Sulphur Report

Issue 12-41 | Thursday 11 October 2012

price guideMArKeT SuMMArY

downward price spiral in china delays Q4 Ag settlements

The end of the holidays in China failed to signal any revival in the sulphur market, indeed the slump has continued with reports in China of low demand, new cuts in domestic prices, rising inventories and port congestion, acid plant shutdowns and steadily declining buyer price ideas. Traders and suppliers in the market report end-users are now prepared to pay no more than $180s/t cfr on new purchases.

The weakness in the market resulted in this week’s Reliance export tender attracting highest bid at just $160-161/t fob Sikka, equivalent to mid-$180s/t cfr China.

This slump in the market has delayed the settlement of Q4 marketing contracts ex-Middle East contracts, where producer price ideas have come down but still remain around the $180/t fob level. October spot cargoes have been put on offer ex-Kuwait and Qatar but trader enthusiasm is low with their spot price ideas sitting no higher than seen in this week’s Indian sales tender.

The weakness in P205 markets culminated in OCP/Morocco and its partners accepting price reductions of $30/t P205 on Q4 phosphoric acid contracts in India.

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Argus FMB Sulphur

FMB sulphur & sulphuric acid price guide ($/t)

contract Spot

Sulphur dry bulk

Fob Vancouver 2H 2012 185-200 175-185

Fob Vancouver Q3-2012 185-210 175-185

Fob Middle East* 2H 2012 175-180 165-175

Fob Middle East* Q3-2012 185-203 165-175

Fob Adnoc posted Oct 2012 185

Fob Iran 165-170

Fob Black Sea (lump-gran) Q3-2012 170-185 145-175

Fob US Gulf Q4-2012 170-175

Fob Caribbean (under 15 k) 160-170

Cfr Brazil Q4-2012 200-205 200-205

Cfr Med (under 10 k) 2H 2012 100-130 125-135

Cfr N Africa (all sizes) 2H 2012 210 170-190

Cfr N Africa (all sizes) Q3-2012 185-210 170-190

Cfr India 210-215

Cfr China Q4-2012 185-195 185-195

*excluding Iran

Sulphur - molten

Cfr Tampa/C Fla (l.t.) Q3-2012 170

Cfr Benelux (loc refs) Q4-2012 195-208

Cpt NW Europe Q4-2012 230-250

Sulphuric acid

Cfr NW Eur (smelters), €/t 2H 2012 70-80

Cfr NW Eur (smelters), €/t Q4-2012 70-80

Cfr Brazil 100***-105***

Cpt = ‘carriage paid to’ for sulphur delivered by Roadtankcar

*** indicative price

020406080

100120140160180200220240260

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 July

fob Vancouver fob Middle East cfr China

Slump in China puts more downward pressure on prices and delays Q4 settlements ex-Middle East.

Sulphur SpoT price coMpAriSon ($/pt fob bulk)

Copyright © 2012 Argus Media Ltd of 12

Argus FMB Sulphur Issue 12-41 | Thursday 11 October 2012

This week’s highlights:

▪ China market in serious slump with buyers returning after holidays looking for $180s/t cfr;

▪ Sinopec cuts domestic prices again

▪ Middle East Q4 contract prices still not settled with

holders resisting $180/t fob on offer

▪ KPC/Kuwait and Tasweeq/Qatar invite offers for spot

October cargoes

▪ FACT tender awarded to Swiss Singapore at $206.10/t cfr

180 days

▪ Unconfirmed rumours of $180/t cfr in Jordan

▪ New Qatar shipment for Madagascar

▪ Reliance export tender attracts new price low at $160-161/t fob – equates to mid-$180st cfr south China

▪ More molten Q4 contracts completed in Europe with all prices falling into $195-208/t cfr range

▪ OCP accepts $30/t P205 reduction in Q4 phos acid prices in India

▪ ▪ Oxbow sells spot cargo to Brazil for mid-Dec arrival in low-$200s/t cfr

▪ ▪ Jan/Sept 2012 imports into Brazil down by 7.5%

ASiA

chinaSuppliers and traders report that sulphur buying interest has returned following the end of the National Holidays but volumes required are low and buyer price ideas are steadily falling, and are now in the $180s/t cfr.

Low consumption and strong imports has led to higher port inventories. The stockpile at the main southern port of Fangcheng is reported to have risen to 500,000t, causing delays in discharging for new arrivals, vessel congestion and the diversion of shipments up to the River ports. Offers of new import cargo at $190/t cfr are being ignored. Traders were being offered distress cargoes from other traders, a sign of crisis trading conditions. This week a molten parcel was sold by a Japanese trader to a regular customer in the low-$180s/t cfr.

There are new reports that due to weak sulphuric acid market conditions more sulphur-burning acid plants are being planned for closure for extended turnarounds. One sulphur buyer turned down an offer of $188/t cfr this week

$175-185/t fob Vancouver

$170/lt cfr Tampa (molten)

$200-205/t cfr Santos

$195-208/t cfr Antwerp (molten)

$180-210/t cfr Jorf Lasfar

$165-185/t fob Jubail, Ruwais

$200-205 cfrParadeep, Chennai

$185-195/t cfr Fangcheng, Nantong

$165-175/t fob Illychevsk,

Kavkaz

SnApShoT - priceS/neTBAcKS grAn/MolTen



indicating that with merchant sulphuric acid domestic prices now down to RMB 360/t, even $180/t cfr for sulphur would not be viable. One trader this week received a bid from a Chinese buyer at $168/t cfr.

Phosphate fertilizer producers have already bought sufficient sulphur stocks for the autumn season, and then are planning 2-3 week turnarounds. In Jan-August 2012 Chinese DAP exports amounted to 1.86 million t, down 12.5% compared with last year.

Trader price ideas for China were demonstrated this week in the Reliance export tender held in India, where highest bid was just $160-161/t fob Sikka for 16-22 November loading, equivalent to low-mid-$180s/t cfr south China.

Holders of marketing contracts in the Middle East are alarmed with price prospects in China for Q4. Middle East producers have acknowledged the weaker market by dropping price ideas from the Q3 levels of $195-200/t fob to $180/t fob for Q4 but traders insist the market is closer to $160/t fob. AG producers are not convinced the weakness in China will endure through the entire quarter. Inventory levels are still relatively low and they believe a sudden upturn in demand in China could coincide with lower supply availability especially in FSU.

The need to reduce inventory levels resulted this week in Sinopec making a new reduction in sulphur prices across-the-board at its refineries of RMB 50/t. This follows three successive price cuts applied by Sinopec in September toalling RMB 190-200/t.

Jinling : molten 1,470/t down 50/t to 1,420/t solid 1,490/t down 50/t to 1,440/tYangzi : molten 1,490/t down 50/t to 1,440/t solid 1,490/t down 50/t to 1,440/tJiujiang: molten 1,520/t down 50/t to 1,470/t solid 1,520/t down 50/t to 1,470/tGuanzhou: solid 1,510/t down 70/t to 1,440/t

Sinopec’s new domestic cuts has impacted on port retail prices, and offer prices at Nantong are now at RMB 1,370/t, equivalent to less than $180/t cfr for imported cargo.

This week total port inventories were recorded at 1.465 million t, still low in comparison with May’s 2 million t.

▪ In Fangcheng (south), stocks had swollen to 500,000t. compared with 370,000t two weeks ago. New Sinopec price reductions at Puguang have resulted in more cuts in offer prices to RMB 1500/t ex-warehouse in bags (down from RMB1600/t in late September).

▪ In Nantong (river), stocks were recorded at 340,000t, with offer prices now down to RMB 1,370/t ex-warehouse

for granular. This compares with RMB 1460-1480/t ex warehouse for granular two weeks ago.

▪ In Zhenjiang (river), stock levels remained at 170,000t, and offer prices were down to RMB 1380-1400/t ex-warehouse, down RMB 100/t compared with two weeks ago.

▪ In Qingdao (north), stocks were down to 150,000t. Prices were on offer at RMB 1470-1490/t ex warehouse for crushed lump product.

(Ex-warehouse prices include 17% VAT and 1% import tax and incidentals).

Main chinese port inventories (’000 t)

9 oct 22 May

Qingdao 150 275

Zhenjiang 170 300

Zhanjiang 180 220

Fangcheng 500 500

Nantong 340 600

Tianjin - 10

Beihai 100 100

Others 25 45

Total 1,465 2,050

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indiaA new price low was witnessed in the Reliance tender of 10 October for 30,000 +/- 10 %. An award was made to Swiss Singapore at $160-161/t fob Sikka for loading 16-22 November. This equates to low/mid-$180s cfr south China.

FACT’s 4 October sulphur tender for 20,000t attracted just two bids from Swiss Singapore and Transfert. An award was made to Swiss Singapore at $206.10/t cfr 180 days for arrival in Cochin 23-26 October. This compares with the last FACT tender awarded to Swiss at $217.99/t cfr 180 days for late September arrival, and shipped from Red Sea, Saudi on the MV Hunter K.

The weakness in the phosphates markets culminated in OCP and its partners agreeing a reduction of $30/t P205 on Q4 phosphoric acid prices down to $855/t P2O5 cfr with 30 days’ credit.

Swiss Singapore has shipped 33,000t of UAE sulphur to Vizag to cover sales made to MMTC and Andhra Sugars and others. The MV Haul Sahin sailed from Ruwais on 3 October.

Swiss has had three shipments totalling 105,000t arrive in Paradeep in the past week:

MV Azure Sky - 41,000t for PPL eta 4 Oct ex-Bahrain/Saudi

MV Aetolic - 31,500t for IFFCO eta 5 Oct ex-Qatar

MV Jasmin - 34,700t for IFFCO eta 10 Oct ex-Kharg Island, Iran

In Tuticorin on 9 October a cargo of 19,000t of Iranian sulphur arrived from Bandar Abbas for SPIC.

There is a new freight enquiry being circulated to load 30,000t of Iranian granular sulphur in Assaluyeh 10-15 October for shipment to Paradeep.

recent spot sales/purchases in india for oct/nov:

▪ Reliance awarded 30,000t to Swiss Singapore at $160-161/t fob Sikka for 16-22 Nov loading.

▪ FACT awarded 20,000t to Swiss Singapore at $206.10/t cfr 180 days for arrival in Cochin 23-26 October.

▪ Reliance awarded 25,000t to Havi believed at $187/t fob Sikka for late October shipment.

▪ CIL finalized 10,000 t with Sun International for 2H Sept shipment to Vizag. Price rumoured around $205/t cfr.

▪ MMTC/SAIL finalized 9,000 t with Swiss at $215.30/t cfr for prompt 2H Sept shipment, shipped ex-Ruwais

MadagascarAnother cargo of Qatar sulphur is loading this week in Ras Laffan for Ambatovy on the MV Asteris by Trammo.

The project is reported to be operating successfuly, now producing refined nickel and preparing to export their first cargo of ammonium sulphate.

Middle eAST

There is still no agreement on Q4 pricing, with allocation holders resisting producer price ideas due to the slump in China. Two major producers are still quoting $180/t fob and above, another is believed considering below this. However traders point out that none of the producer price ideas are anywhere near the levels required to do business in today’s China market – which is $160/t fob as reflected in this week’s India export sales tender.

uAeThere have been no settlements so far on Q4 contracts. It is understood that due to the slump in the market in China

Sulphur Arrivals Selection indian ports Sept/oct 2012

Supplier/Buyer origin Vessel KT Arrival port

Transfert/CIL UAE Zhong Shan Men 22 13 September Vizag

ETA/RCF Oman Rainbow Angel 10 15 September Mumbai

Swiss/FACT Saudi (Red Sea) Hunter K 24 22 September Cochin

Swiss/PPL Saudi/Bahrain Azure Sky 41 4 October Paradeep

Swiss/IFFCO Qatar Aeotolic 32 5 October Paradeep

Swiss/IFFCO Kharg Island, Iran Jasmine 35 10 October Paradeep

Swiss/MMTC/Andhra Sugars UAE Haul Sahin 33 13 October Vizag

-/SPIC B Abbas, Iran Hong Peng 19 9 October Tuticorin



ADNOC may be prepared to entertain Q4 fob prices below $180/t fob Ruwais.

Last week, in acknowledging the recent weaker market sentiment, ADNOC dropped the October OSP by $5/t to $185/t fob Ruwais.

In Ruwais the MV Abual Abyad sailed for OCP/Morocco with

33,000t of ADNOC sulphur on 4 October.

On 3 October Swiss Singapore shipped 33,000t from Ruwais to Vizag, India to cover sales made to MMTC and Andhra Sugars and others. Prior to this Oxbow shipped 33,000t to Philphos/Philippines. The MV Rook sailed from Ruwais on 19 September.

FMB Spot Sales Selection – 11 october 2012

product origin Seller Buyer destn ‘000t $/t bulk Shipmt

Sulphur TBC Oxbow Copebras Brazil 25 low 200s cfr Dec arrIndia Reliance Swiss China 30 160-161 fob Nov

AG Swiss FACT India 20 206.10 cfr 180 d 2H OctGermany solvadis GCT Tunisia 25 est 185-190 cfr End Sept

Taiwan Formosa China Oil China 15 ar 180-182 fob 2H OctUAE Oxbow Philphos Philippines 30 est low 200s cfr End SeptItaly ExxonMobil Trammo Egypt 6 157 fob Oct

India Reliance Havi China 25 187 fob 2H OctQatar Tasweeq Swiss India 30 175 fob End SeptTaiwan Formosa Local trader China 15 ar 190 fob 1H Oct

Kuwait Sun CIL India 10 ar 205 cfr Sep/OctFSU Trammo Copebras Brazil 25 205-210 cfr OctSpain Interacid Isusa Uruguay 9 est 215-220 Sept

UAE Swiss MMTC/SAIl India 9 215.30 cfr SeptSaudi/Bahrain Swiss PPL India 35 212-213 cfr SeptSaudi (Red Sea) Swiss FACT India 25 217.99 cfr 180d Sept

Iran KHPC Trader China 20 ar 185 fob SeptIran IGCC Trader China 30 183.25 fob Sept

Poland solvadis Akzo Argentina 15 215-220 cfr SeptCalifornia Oxbow Various China 60 205-207 cfr SeptKuwait KPC Trader China 25 195 fob Sept

Taiwan Formosa Chinese trader China 15 192 fob SeptIndia Reliance Swiss Jordan 27 183-184 fob SeptUAE Transfert CIL India 24 211 cfr Sept

Greece Oxbow Galvani Brazil 6 ar 210 cfr SeptItaly Trammo Akzo Argentina 10 ar 215 cfr SeptAG Traders End-users South China various 206-213 cfr Sept

Italy Chemtrade Meranol Argentina 6 215-220 cfr SeptCalifornia HJ Baker/Oxbow Fertinal Mexico 50 mid-170s fob Oct

Sulphuric Acid Europe - - US Gulf 10 95 cfr Sept

China Two Lions - Australia 10 60s fob Sept

China Two Lions - Vietnam 5 60s fob Aug

Europe Aurubis Timac Brazil 15 101-105 cfr Oct

Italy Prai OCP Morocco 2 x 3-4 high-50s cfr Sept

Japan Trader P Gresik Indonesia 10 65-70 cfr Sept/Oct

Korea n.a. P Gresik Indonesia 20 65-70 cfr Sept/Oct

TBC Trader PT Gresik Indonesia 20 65-70 Oct



QatarTasweeq has invited contract holders to bid for a spot cargo of 30,000t for October shipment. Offers are due in next week.

This week Trammo is shipping 30,000t in Ras Laffan for Madagascar on the MV Asteris.

On 1st October the MV Glorious Saiki sailed from Ras Laffan with 30,000t for OCP/Morocco.

Prior to this, Swiss Singapore shipped 31,500t from Qatar to Paradeep for contract customer IFFCO/Paradeep. The vessel MV Aetolic sailed from Ras Laffan on 24 September and is scheduled to arrive in Paradeep on 5 October.

Saudi ArabiaIn Jubail, Oxbow has just loaded 38,500t on the MV Atlantic Pride for shipment to China. The ship sailed on 1st October.

Prior to this China Oil loaded and shipped 44,000t to China on the MV ICS Spirit. The vessel sailed on 28 September.

Aramco Trading’s direct customer OCP/Morocco loaded and shipped 37,000t from Jubail to Morocco. The vessel MV Nirmal Gautum sailed on 24 September.

Swiss Singapore’s MV Azure Sky was scheduled to arrive in Paradeep on 4 October with 41,000t loaded in Jubail and Bahrain. The tonnage was sold to PPL.

KuwaitKPC held a spot tender on 10 October for 30,000t loading in late October. There appears to have been no award so far with most traders indicating prices sub-$170/t fob, closer to the Reliance/India award price at $160-161/t fob. With respect to Q4 contract negotiations, KPC has indicated a floor price of $180/t fob Shuaiba. One Chinese contract holder is understood to have countered at $170/t fob, which equates to $195-200/t cfr, still way above today’s market in China.

On 25 September Transfert’s MV Royal Ruby shipped 26,600t from Shuaiba to China.

omanOman Refineries & Petrochemicals closed a tender on 26 September for 60,000t for shipment Jan-Dec 2013. ETA was awarded the business for 2012.

iranThe sulphur trade out of Iran is becoming increasingly difficult due to sanctions imposed, and sales are increasingly being made quietly mainy through Chinese traders, althoguh recently two shipments arrived in Pradeep and Tuticorin from India.

There is a new freight enquiry to load 30,000t of IGCC granular sulphur in Assaluyeh prompt for shipment to Paradeep, EC India.

Swiss Singapore’s MV Jasmine arrived in Paradeep on 10 October from Kharg Island with 35,000t for IFFCO.

On 9 October a cargo of 19,000t of Iranian sulphur arrived in Tuticorin from Bandar Abbas for SPIC.

JordanThere are unconfirmed rumours circulating that JPMC has finalized Q4 volumes with a Middle East supplier at close to $180/t cfr. In Q3 JPMC finalized tonnes with Aramco (Red Sea) and Swiss (Saudi, Qatar, India/UAE) in the $192-202/t cfr range.

Med/AFricA

egyptEFIC closed a tender on 30 September for 2x5,000t for October and November shipment. It is understood that subsequently 25,000t was booked for Egypt, for October/November shipment at an undisclosed price. Teotrade is understood to be the supplier.

165

190

210

225

240 240

225 215 220 220 220

205

190 180

195 200 210 215

205

190 190 185

0

20

40

60

80

100

120

140

160

180

200

220

240

260

J-11 F M A M J J A S O N D J-12 F M A M J J A S O

2011/2012

Adnoc oFFiciAl Selling price ($/pt fob ruwais)



Morocco OCP and its partners have agreed Q4 phosphoric acid pricing in India down $30/t P2O5 to $855/t P2O5 cfr with 30 days’ credit.

Negotiations continue between OCP and its main contract suppliers on Q4 shipments. Suppliers have rejected OCP’s initial proposal of $170/t cfr and expectations are that a final settlement will be closer to $185-190/t cfr for FSU supplies.

South AfricaFoskor’s Richards Bay complex is likely to continue to operate at a reduced rate for the balance of the year as repairs continue at one of the three acid lines. As a result Foskor has no interest in securing new spot tonnages and is more than covered by contractual volumes.

norTh WeST europe

BeneluxMost contracts have now been agreed for Q4 between the main refiners and their customers. Large volume consumers have agreed mainly in the $195-200/t. One leading refinery supplier has indicated that it agreed its contracts in the range $202-210/t cfr. These represent price reductions of $10-12/t compared with Q3 contract prices.

In late September a cargo of 3,800 t of molten sulphur was shipped to Antwerp on the MV Sulphur Genesis.

Total has tighter sulphur availability in Q4. At the Antwerp refinery a 30-day turnaround commencing end-September is cutting production/availability by 50%. In Normandy the major revamp/debottlenecking of Total’s Gonfreville refinery – aimed at increasing diesel production - is resulting in lost sulphur production for three months Sept through November.

germanyThe cargo of 25,000t of spot sulphur bought by GCT from solvadis has now been delivered. The MV Exelixis arrived in Gabes on 30 September.

eAST europe

russia/KazakhstanQ4 contract negotiations between Russian/Kazakh suppliers and customers in North Africa continue. Most observers expect a price reduction will be agreed down from $200/t cfr down to the $185-190/t cfr. It is understood the Russians will again suspend shipments if no deal is reached by the end of October, as occurred in Q3.

Two Russian shipments have also been made to Morocco for 1H October arrival in Jorf Lasfar on the MV Nikat 40,000t and the MV Eirini L 35,000t.

In Kafkaz, the MV Valopoula with 30,000t of Russian sulphur was recently shipped to Tunisia for GCT.

As reported last week, contract negotiations in Brazil have now been completed on Q4 shipments. Vale successfully brought down prices from close to $210/t cfr in Q3 to just over $200/t cfr for both Russian and Kazakh shipments.

The MV Mimosa has been fixed to load 40,000t of Russian granular for shipment to contract customer Vale. The ship is scheduled to arrive in Santos on 5 November.

The MV Anton Topic is due to arrive in Santos for Vale on 12 October with 30,000t of Russian sulphur loaded in Ust Luga.

Trammo is also shipping a granular cargo to Brazil from Ust Luga. The MV ACS Diamond is being shipped to Galvani and is due in Santos on 13 October.

Following this, Trammo will ship a cargo of 33,000t of TCO granular from Illychevsk to Copebras on the MV Yan Dang Hai. The ship is due to arrive in Santos on 17 October.

norTh AMericA

uSABrazil and Mexico are dominating October US liftings out of the US Gulf and California.

Kazakh Sulphur exports ‘000t

country Jan-Aug 2012

Jan-Aug 2011

Jan-dec 2011

World 1,998 1,995 3,511

China 855 668 1,383

Ukraine 320 306 464

Morocco 208 331 598

Brazil 204 150 265

Lithuania 106 88 139

Israel 76 86 137

Tunisia 53 87 143

Egypt 50 36 49

Namibia 50 - 33

Lebanon 33 16 32

Jordan 29 127 160

Turkey 12 27 27

Others 2 73 81

Source of Data: Copyright GTIS, 2012



In California Fertinal’s MV Hudson Trader 1 is scheduled to load 50-55,000t of HJ Baker and Oxbow sulphur 17-20 October for shipment to Lazaro Cardenas. The deal was done back in August in the mid-$170s/t fob.

Trammo has fixed the MV Bogdan to load 11,500t in Beaumont for shipment to Santos for Vale. The ship is due to arrive in Santos on 5 November.

It has been confirmed that US suppliers have been finalizing Q4 contract shipments in Brazil in the range $170-175/t fob US Gulf. With freights around $30/t, this equates close to $200/t cfr.

Shell is shipping a cargo of 35,000t from Beaumont to Vale on the MV Takeshio. The ship is due to arrive in Santos on 8 October.

Valero is scheduled to load another Beaumont cargo to Brazil. The MV Tensei Maru is due in Santos with 40,000t on 17 October.

Oxbow has shipped the MV Unison Power from the US Gulf to Brazil for Galvani and Copebras. The cargo of 37,000t arrived in Santos on 3 October.

HJ Baker’s MV Navios Herakles is expected to arrive in Santos with 40,000t for Vale on 28 October from California.

Oxbow is also due to load a Californian cargo for Vale. A 50,000-tonner is understood to have been fixed to load in mid-late October in Stockton/Long Beach for shipment to Santos for Vale. According to freight sources the ship has been fixed in the low-$20s/t cfr.

SouTh AMericA

Venezuela It is understood a cargo of 14,000t of molten sulphur has been arranged for shipment from Jose to Lazaro Cardenas for Fertinal. The MV Aurora is scheduled to arrive in Lazaro Cardenas in mid-October. Brazil

Copebras has finalized its spot enquiry for 25,000t for mid-December arrival with Oxbow in the low-$200s/t cfr.

This is in line with Q4 contract shipment agreed by Vale with its FSU and USG suppliers. Prices for FSU shipments (both Russian and Kazakh) were finalized at just over $200/t cfr. Contract shipments from US suppliers were finalized at $170-175/t fob US Gulf, equating again close to $200/t cfr.

Trammo has fixed the MV Bogdan to load 11,500t in Beaumont for shipment to Santos for Vale. The ship is due to arrive on 5 November.

Brazil Jan-Sept 2012 imports down 7.5% y/y; increases from uSA and FSu, declines from Middle east

Sulphur imports into Brazil in September amounted to 151,000t, of which 74,000t was imported from Russia, 59,000t from Kazakhstan and 18,000t from USA. This contributed to a Jan-Sept 2012 import total of 1.426 million t, down 7.5% over Jan-Sept 2011. Largest import source in January-September 2012 was USA with 465,000t, up 20% over last year, increasing market share y/y from 25% to 33%. Imports from Russia rose by 17% to 361,000t, and from Kazakhstan by 11% to 215,000t. Major declines were evident from Middle East sources, with imports dropping from UAE by 39% to 141,000t, from Qatar by 35% to 60,000t and Saudi by 70% to 41,000t. Imports from Venezuela rose by 37% to 100,000t.

gTiS Brazil Sulphur imports (kt)

Jan/Sep 2012

Jan-Sept 2011

J-dec 2011

J- dec 2010

USA 465 386 569 704

Russia 361 308 399 324

Kazakhstan 215 194 268 185

UAE 141 229 271 144

Venezuela 100 73 73 33

Qatar 60 93 93 166

Saudi 41 136 170 33

V Isles 18 28 39 51

Spain 16 - - -

Canada - 41 80 83

Germany - 20 70 18

Poland - - 22 44

Kuwait - 17 17 -

Italy 2 12 13 -

Turkey - 3 4 9

Iran - - - 66

India - - - 26

Libya - - 9 9

Trinidad - - 4 4

Aruba 7 - - -

Others 2 2 2 2

TOTAL 1426 1542 2809 1901



See accompanying table showing the latest line up of vessels due to arrive in Santos. These comprise shipments from Russia and Kazakhstan via Black Sea and Baltic, USA via US Gulf and California. Nothing from the Middle East is in the schedule.

Sulphuric Acid

MArKeT SuMMArY

lack of business in the sulphuric acid market

The difference in contract price ideas in Chile continues to put the sulphuric acid market on hold, while the dark clouds hanging over the market remain the gloomy global economy. The key Chilean annual contracts will reveal pricing direction for 2013, but the price gap is solidly apart by at least $30/t. Suppliers are firm on their ideas at $120/t cfr Chile and above, citing healthy metal prices; but buyers are adamant that prices will have to come down with no growth in import demand expected next year. The European market is stable, with a new spot cargo of 10,000t believed to be sold at $95/t cfr US for November arrival. European players are also watching the development of 4Q Latin American demand closely.

On the supply side, the slump in the sulphur market has continued because of low demand in major market China, which in turn delayed 4Q contract settlements and added further confusion on pricing outlook.

On the demand front, prices of the three major base metals on the LME declined on 11 October. Copper is down 1.82pc on last week to $8,125/t, and nickel prices dropped by 4.75pc to $17,735/t. Zinc recorded the biggest drop out

Sulphur Vessel Arrivals Santos oct /nov 2012

Vessel/Vol `000t Supplier origin receiver eTA eTc

UBC Longkou/38,5 Russian supplier Kafkaz, B Sea Vale 18 Sep 1 Oct

Inventana/36 Oxbow US Gulf Copebras 28 Aug 4 Oct

Hemus/23 Oxbow D’dsonville, USG Galvani, Elekeiroz 06 Sept 11 Oct

Unison Power/37 Oxbow Beaumont, USG Galvani, Copebras 3 Oct 8 Nov

Takeshio/35 Shell Beaumont, USG Vale 8 Oct 26 Oct

Anton Topic/30 Russian supplier Ust Luga, Baltic Vale 9 Oct 29 Oct

Tensei Maru/40 Valero Beaumont, USG - 17 Oct 3 Nov

Navios Herakles/40 HJ Baker Stockton/LB, Cal Vale 28 Oct 8 Nov

ACS Diamond/22,5 Trammo Ust Luga, Baltic Galvani 14 Oct 10 Nov

Yan Dang Hai/33 Trammo Illychevsk, B Sea Copebras 17 Oct 13 Nov

Bogdan/11,5 Trammo Beaumont, USG Vale 5 Nov 9 Nov

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of the three metals by 5.06pc to $1,952/t. Demand for phosphate fertilizers is weak, reflected by lower MAP price indications in Brazil this week. Continued producer length in North Africa and lower phosphoric acid pricing in India will put pressure on the phosphates market, despite major US holding steady.

On the freight side, some tanker owners and sulphuric acid traders are finalising their charter agreements, and there is consensus that tanker rates will be stable for the coming year with limited upside expected.

lATin AMericA

chile There are expectations that 2013 Chilean pricing discussions will move forward next week as major market players gather in London for an industry event. At the moment, the difference in price ideas between buyers and sellers is still wide apart. There are worries that suppliers in the Far East, with a sizeable market share in the Chilean market, may be inclined to lower their price ideas to secure the contracts – a repeat of what happened last year. However, there is no sign of conclusion just yet and most suppliers will be reluctant to accept levels below $120/t cfr Chile.

Interacid will be loading 30,000t of acid in the Far East for end-November shipment to Chile under contracts.

BrazilThere is talk in the market that a 15,000t September cargo for Timac was postponed but this was not confirmed. Timac bought this spot cargo in the low-$100s/t cfr Brazil in late

August. The country is likely to require two to three more spot cargoes for the remainder of 2012.

Latest statistics from the foreign trade secretariat show that Brazil’s sulphuric acid imports in the first nine months of 2012 were down 9.5pc on 2011, to around 410,000t. During this period, sulphuric acid imports from China (compared with 19,012t in Jan-Sep 2011), South Korea (98,586t) and Bulgaria (57,908t) were almost absent. Brazil resorted to buying more from Germany, Spain, Sweden and Belgium as a result. In September alone, the majority of acid was imported from Spain, Italy and Poland. Total September imports were down 66pc to around 25,000t on last year.

Brazil: Sulphuric acid imports T

country Sep 12 Sep 11 ±%Jan-Sep

12Jan-Sep

11 ±%

Germany 5 1 647 137,067 38,770 254

Spain 17146 0 0 111,070 44,280 151

Poland 3395 15767 -78 41,567 46,505 -11

Sweden 0 0 0 38,287 0 0

Belgium 0 3 -100 29,829 6,304 373

Japan 0 22041 -100 18,919 53,998 -65

India 0 0 0 13,000 37,674 -65

Italy 4253 0 0 10,504 4 ∞

Australia 0 0 0 10,022 18,876 -47

Mexico 0 0 0 5 5 17

Other 2 34811 -100 11 207,182 -100

World 24,801 72,624 -66 410,283 453,597 -9.5

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europe

northwest europeSulphuric acid buyers say that the downstream caprolactam market in Europe has been hit by high costs in feedstock, including phenol and benzene, and suggest that the sulphuric acid market is stable rather than tight.

Contracts for 4Q shipments have been finalised at a rollover of €70-80/t cfr NW Europe.

There are unconfirmed reports that a European spot cargo of 10,000t has been sold into the US at a netback of around $40/t fob for November arrival.

Med/AFricA

namibiaRio Tinto is in the freight market for 200,000-330,000t of sulphuric acid for 2013 shipments to Walvis Bay, Namibia. The company has requested for 120,000-150,000t, around six to eight shipments evenly spread throughout the year, to load from Germany (Hamburg) and/or Bulgaria (Varna). The freight inquiry also includes 80,000-180,000t to load from Korea (Onsan), China (Zhangjiagang) or India (Dahej, Kandla, Tuticorin), amounting to four to six shipments throughout 2013.

ASiA

JapanContracts for 4Q shipments into China have not yet come to fruition. It is understood that some customers have raised their price bids by $5/t to $45/t cfr China, because of stricter environmental regulations that may limit local smelter acid production. However, a range of $40-45/t cfr nets back to below $20/t fob Japan, which remains unattractive to suppliers at present. Suppliers are exploring other export options in Latin America.

The Tamano smelter will enter a planned, 44-day turnaround beginning 1 November. Around 90,000t of acid is estimated to be lost because of this.

chinaThere wasno export business for November shipment concluded this week after the Chinese market returned from a one-week national holiday. The last export business was 20,000t acid Two Lions sold in the $58-65/t fob China range last month for October shipment, and the cargo was loaded in the first week of October. Netbacks of recent bids are

understood to have dipped below this range, prompting acid producers to stay in the domestic market.

The domestic market, however, has taken a downturn this week in line with the sulphur and phosphates markets. Acid from sulphur burners are down RMB40/t from one month ago to RMB360/t (equivalent to $57.32/t, $1 = RMB6.28). Domestic smelter acid is priced more competitively, which stirs speculation that more sulphur burners would cut back production should the market stay bearish in the near/medium term. With the DAP low export tax window already closed, the only phosphates demand in China comes from its domestic autumn fertilizer application season.

The Chinese economy is slowing down, also prompting worries that its copper consumption would fall for the first time since 2008. If smelter capacity utilisation is curtailed as a result, sulphuric acid production would be impacted accordingly.

indiaFACT extended its import tender, which was closed on 11 October rather than 3 October, for 9,000t of sulphuric acid for October-November shipment. FACT is now evaluating all technical offers. The buyer last entered the spot market for 9,000t of acid back in June but did not purchase.

oceAniA

AustraliaFollowing the suspension of the Cosmos mine, nickel exploration may drop further in 2013 because of weaker prices compared to the 2009 levels, West Australia Mines Minister Norman Moore was reported as saying by local media.

india: Sulphuric acid arrivals in october

Supplier/Buyer Vessel T load port discharge

portArrival

date

Hindalco/ IFFCO Fairfield 19,500 Dahej Paradeep 5 Oct

Stelite/CIL Sunny Dream 10,000 Tuticorin Paradeep 7 Oct

Mitsui/ CIL Stolt Sakura 3,000 Japan Vizag 10 Oct

Sterlite/PPL Highbury Park 9,661 Tuticorin Paradeep 12 Oct

Mitsui/CIL Stolt Sakura 11,684 Japan Kakinada 12 Oct

Mitsubishi/IFFCO

Southern Hawk 13,500 Japan Paradeep 30 Oct

Fertilizer


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The Cosmos mine is owned by Xstrata Nickel Australasia and was closed because of a prolonged period of low nickel prices and a strong Australian dollar. In this particular case, Cosmos’ suspension is unlikely to impact the Sudbury nickel smelter in Canada, because Sudbury is expected to maintain production with its overall blend of feeds from various locations.

Middle eAST

Saudi ArabiaAl Masane Al Kobra Mining plans to build a $399mn copper smelter after operations at its Al Mansan copper mine in Najran recommenced operations recently. Copper mined at Al Mansan would serve as feedstock for the smelter. The mine is reported to be producing 35,000t of copper and 45,000t of zinc on an annual basis.

norTh AMericA

uSThere are unconfirmed reports that a European spot cargo of 10,000t has been sold into the US at $95/t cfr for November arrival. Freight is estimated in the mid-$50s/t.

uS domesticMarket players await 4Q Tampa sulphur price settlements, currently expected to be down $5-10/lt from the 3Q level of $170/lt cfr. The price will impact acid pricing by sulphur-based producers.

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argus fmb sulphuroct 11, 2012 · argus fmb sulphur formerly fmb weekly sulphur report issue 12-41...

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