Weak phosphates markets impacting on sulphur price sentiment
A poor outlook for phosphate fertilizer is contributing to a weaker sulphur market sentiment. DAP producers are cutting back production in Q4, Indian phosphoric acid buyers are proposing price reductions from their suppliers of $80/t P205 for Q4, and China’s domestic season market is expected to be oversupplied. Major sulphur end-users in the phosphate fertilizer industry are proposing Q4 cfr prices should be reduced by at least $15-20/t over Q3. Chinese buyers are targeting sub-$190/t cfr. Contract suppliers are acknowledging the weaker conditions but point to upcoming constraints in winter supply especially in Russia, continued low port stocks in main market China, active fertilizer enquiry in South America, and more demand approaching from the new nickel projects. Traders holding contract allocations with Middle East producers are alarmed with the prospect of again being squeezed between high fixed fob costs and markets with low, declining cfr prospects. Today’s market in China is equivalent to mid-$160s/t fob. It is understood that so far in opening contract negotiations ADNOC is proposing $180/t fob for Q4, KPC is higher at $190/t fob with Aramco silent so far.
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Argus FMB Sulphur
FMB sulphur & sulphuric acid price guide ($/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 175-180 170-180
Fob Middle East* Q3-2012 185-203 170-180
Fob Adnoc posted Sep 2012 190
Fob Iran 170-180
Fob Black Sea (lump-gran) Q3-2012 170-185 145-175
Fob US Gulf Q3-2012 180-185
Fob Caribbean (under 15 k) 160-170
Cfr Brazil Q3-2012 205-215 208-211
Cfr Med (under 10 k) 2H 2012 100-130 125-140
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 Q3-2012 192-205 192-205
*excluding Iran
Sulphur - molten
Cfr Tampa/C Fla (l.t.) Q3-2012 170
Cfr Benelux (loc refs) Q3-2012 208-220
Cpt NW Europe Q3-2012 240-260
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
China buyers now looking for sub-$190/t cfr; Q4 contract negs underway with AG producers offering $180-190/t fob.
Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
This week’s highlights
▪ China market slips to $195/t cfr with major buyers now seeking sub-$190/t cfr
▪ Sinopec applies a new range of domestic price cuts across China
▪ Latest Taiwan tender award down $10/t on last biz done, equating to low-$190s/t cfr China
▪ Poor outlook for phosphate fertilizers causing DAP production cutbacks, less sulphur consumption ▪ ADNOC offering $180/t fob for Q4, KPC $190/t fob, Aramco silent so far
▪ GCT/Tunisia picks up spot German cargo
▪ Oxbow sells Ruwais cargo to Philippines
▪ Swiss has four vessels lined up for Cochin and Paradeep totalling 130,000t ex Saudi/Bahrain, Iran, Qatar
▪ Havi heard to have been awarded Reliance tender
▪ Swiss ships Reliance cargo in combo with UAE tonnes for Jordan
▪ Copebras entertains bids for 25,000t December arrival
ASiA
chinaIn response to weak market sentiment, with enquiry for port inventory low, traders cautious, and end-users buying on a needs-only basis, Sinopec started the week with a new round of price cuts at refineries across China ranging between RMB 40-70/t. At the leading Puguang Gas Plant prices were reduced by RMB 60/t to RMB 1420/t ex-Wanzhou port, and by RMB 70/t to RMB 1,380/t ex-plant by truck.
Traders report the sulphur supply network in China is full and more arrivals are in the pipeline. Fertilizer production is being cut back with fertilizer warehouses full. Buyers are now quoting sub $190/t cfr for new purchases, which is equivalent to $160s/t fob Middle East and is being resisted by traders, with Middle East sulphur producers not looking to move Q4 prices by so much from Q3 levels ($195-200/t fob).
It is emerging that the latest parcels of Japanese molten sulphur have been concluded with Chinese customers in the $192-195/t cfr range. This week a new export tender held in Taiwan was awarded at close to $180/t fob for late October lifting, down $10/t on the last business, and equates to low-$190s/t cfr China.
A flat over-supplied domestic phosphate fertilizer market and a soon-to-expire fertilizer export window are important
Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
factors behind a growing weight of opinion that there is little likelihood that sulphur prices will bounce back later in Q4. One factor impossible to predict is the weather – excellent weather conditions could easily flip the current situation and produce a buoyant fertilizer season.
No major developments are expected until after the upcoming national holidays in China (Mid-Autumn Festival and National Holiday) which last from 30 September through the first week of October.
China AG exports to China down in August
According to GTIS customs data, sulphur imports into China in August amounted to 710,000t, up 11.27% over August 2011. Main imports in August were sourced from Saudi Arabia 120,000t, Kazakhstan 93,000t, S Korea 88,000t, Qatar 82,000t, Japan 69,000t, Canada 68,000t, USA 62,000t, Russia 48,000t, India 36,000t and Iran 32,000t. This contributed to a Jan-August 2012 import total of 7.533 million t, an emphatic 24% increase over Jan-August 2011 imports. Saudi Arabia remains leading import source with 1.359 million t imported (down 1%), followed by Kazakhstan 861,000t (up 14%) and Canada 838,000t (up 8%).
Sulphur Taiwan Formosa Chinese trader China 15 ar 180 fob 2H OctUAE Oxbow Philphos Philippines 30 est low 200s cfr End SeptItaly ExxonMobil Trammo - 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/Oct- Trammo Copebras Brazil 25 205-210 cfr OctSpain Interacid Isusa Uruguay 9 est 215-220 Sept
- Swiss MMTC/SAIl India 9 215.30 cfr SeptAG Swiss PPL India 35 212-213 cfr Sept
Saudi (Red Sea) Swiss FACT India 25 217.99 cfr 180d SeptIran 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 - 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 Sept
AG Traders End-users South China various 206-213 cfr SeptItaly Chemtrade Meranol Argentina 6 215-220 cfr SeptCalifornia HJ Baker Fertinal Mexico 50 mid-170s fob Oct
Canada Oxbow Fertinal Mexico 50 mid-170s fob Sept
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
Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
Imports from the UAE of 777,000t registered a huge rise of 177% over last year’s 281,000t. Strong increases were also recorded from Qatar 743,000 t (up 77%), South Korea 596,000t (up 39%), Russia 507,00t (up 54%) and USA 155,000 t (up 258%). The only reductions of any substance were from Iran with imports of 411,000t (down 21%), and Taiwan 58,000t (down 53%).
China imported a total of 700,000t of sulphur in June, down 37% from the May total of 1.118m t. The main sources were Kazakhstan (129,000t), Canada (128,000t), Russia (78,000t), Saudi Arabia (71,000t), Japan (66,000t) and South Korea (60,000t).
▪ In Nantong (river), stocks were recorded at 390,000t, and offer prices had dropped down to RMB 1460-1480/t ex warehouse for granular, and below RMB 1450/t for crushed lumps.
▪ In Zhenjiang (river), stock levels were a little higher at 170,000t. Prices were down to RMB 1480-1500/t ex warehouse.
▪ In Qingdao (north), stocks were down to 170,000t. Prices were on offer at RMB 1470-1490/t ex warehouse for crushed lump product.
▪ In Fangcheng (south), stocks remained at 370,000t. Following this week’s Sinopec price reductions in Puguang. offer prices in Fangcheng dropped to RMB 1600/t in bags.
Sinopec has been told by environmental authorities to suspend over 400,000 b/d of refining capacity in Guangdong province after it was alleged to have illegally polluted the Pearl river. China’s environmental protection ministry (Mep) has ordered the firm to suspend operations at its 314,000 b/d Guangzhou refinery in the Pearl river delta and 100,000 b/d Dongxing refinery in Zhanjiang, as well as its 80,000 t/yr Xinzhongmei polystyrene plant. Sulphur production is around 10-12,000t/month.
TaiwanFormosa issued another new sales tender for 15,000t of sulphur closing 27 September with laycan 26-30 October. An award was made to a leading Chinese trader at close to $180/t fob, down around $10/t from the last tender business. Based on freights to Nantong at around $13-14/t, this equates to low-mid $190s/t cfr China.
The previous tender business, awarded at close to $190/t fob for 11-15 October lifting, was made to a local Taiwan trading company and has already been sold into China.
philippinesPhilphos has bought a cargo of 30,000t of sulphur from Oxbow. Price is estimated in the low $200s/t cfr range. The
china Sulphur imports (‘‘0’000t)
country Jan/Aug 12 Jan/Aug 11 Jan/dec 11 Jan/dec 10
S Arabia 1,350 1,361 1,924 2,399
Kazakhstan 861 756 1,360 1,319
Canada 838 774 1,050 1,864
UAE 777 281 384 395
Qatar 744 419 814 742
Japan 719 721 1,050 1,145
South Korea 596 429 745 511
Russia 507 329 659 368
Iran 411 518 715 548
Kuwait 221 191 339 267
India 175 83 165 126
US 155 43 70 395
Taiwan 58 124 157 276
Ukraine 49 13 31 27
Turkmenistan 22 - - -
Uzbekistan 15 23 25 17
Bahrain 10 6 15 16
Iraq 7 3 3 4
Malaysia 4 1 1 1
Jordan 2 - 2 3
Turkey 1 5 5 12
Singapore - - 62 62
Venezuela - - 45 45
World 7,533 6,085 9,523 10,490Totals may not add due to rounding
Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
cargo is understood being loaded and shipped this week from Ruwais, UAE. indiaThe recent Reliance on-line tender for 33,000t is believed to have been awarded to Havi. The tender closed on 12 September for lifting 20-26 October. Reliance put a reserve minimum price $187/t fob on the cargo, and it is assumed the award was made at this level or above. The tender attracted a very low response.
With respect to the previous RIL cargo, awarded to Swiss Singapore in the low-$180s/t fob, the vessel MV Windsail sailed from Sikka with 25,000t of granular RIL sulphur for shipment to Ruwais. The ship is currently loading an additional 15,000t of ADNOC sulphur and then the 40,000t cargo will be shipped to Jordan to cover the next cargo in the Swiss-JPMV contract.
Swiss Singapore’s domination of the large cargo market in India is clear. Following the shipment of 24,000t from Red Sea/Saudi to FACT/Cochin on the MV Hunter K, Swiss has three shipments totalling 105,000t arriving in Paradeep in the first days of October:
MV Azure Sky - 41,000t for PPL eta 4 Oct ex-Bahrain/Saudi
MV Jasmin - 33,000t for IFFCO eta 4 Oct ex-Iran
MV Aetolic - 31,500t for IFFCO eta 5 Oct ex-Qatar
recent spot sales/purchases in india for August/September: ▪ 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
▪ PPL/Paradeep purchased 35,000t from Swiss Singapore at $212-213/t cfr for September shipment
▪ FACT finalized 25,000t with Swiss Singapore at $217.99/t cfr 180 days for arrival in Cochin 17-20 September
▪ Reliance sold 27,000t to Swiss Singapore at $183-184/t fob Sikka for loading 15-21 September – shipped to Jordan
Middle eAST
Some Middle East producers commenced Q4 price negotiations this week. They have responded to the weakening market conditions by offering lower prices, ADNOC is understood to have proposed $180/t fob Ruwais and KPC opening with $190/t fob Shuaiba. There have been no proposals put forward by Aramco so far.
uAeADNOC is understood to have offered allocation holders $180/t fob Ruwais for Q4 contract shipments.
Oxbow has loaded 30,000t in Ruwais this week for shipment to Philphos/Philippines. A sale was made there with price estimated at in the low-$200s/t cfr.
Swiss Singapore is currently loading 15,000t in Ruwais on the MV Wingsail. The vessel arrived in Ruwais already carrying 25,000t of Indian Reliance sulphur. Once completed the cargo of 40,000t will be shipped to Aqaba, Jordan to cover part of Swiss Singapore’s cot with JPMC.
Sulphur Arrivals Selection indian ports 2h Aug/Sept 2012
Supplier/Buyer origin Vessel KT Arrival port
Swiss/PPL Iran Omera 1 38 21 August Paradeep
Swiss/IFFCO UAE Magnum Energy 38,5 25 August Paradeep
Swiss/Inland/IFFCO Kuwait/Bahrain Konstantinos 32,3 29 August Paradeep
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
Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
The market awaits ADNOC’s decision on the October OSP price. A new reduction is widely expected from the $190/t fob price level in place for August and September.
QatarSwiss Singapore is shipping 31,500t from Qatar to Paradeep for contract customer IFFCO/Paradeep. The vessel MV Aetolic is scheduled to arrive in Paradeep on 5 October. It is understood the cargo was picked up by Swiss Singapore as a spot sale around the mid-$170s/t fob.
Saudi ArabiaAramco Trading has given no indication to allocation holders its price ideas for Q4 shipments. With early October liftings approaching, contract holders are concerned at the prospect of lifting and placing unpriced tonnages. If prices are not agreed by the end of the first month of the quarter, then Q3 prices apply.
Oxbow is arranging the late September shipment of 36,000t from Jubail to China with laycan Sept 27-29.
Swiss Singapore has fixed the MV Azure Sky to load 41,000t in Jubail and Bahrain for shipment to PPL/Paradeep. The ship is scheduled to arrive in Paradeep on 4 October.
Swiss Singapore shipped 24,000t on the Hunter K in Yanbu to cover its last sale to FACT/Cochin at $217.99/t cfr 180 days. The ship arrived in Cochin on 22 September.
KuwaitKPC is understood to have commenced Q4 contract negotiations with customers this week. Having recently secured spot sales in the low-mid $190s/t fob Shuaiba, the producer has tabled price ideas at around the $190/t fob level.
iranSwiss Singapore has fixed the MV Jasmin to load 33,000t of Iranian granular for shipment to IFFCO/Paradeep. The ship is scheduled to arrive in Paradeep on 4 October.
Med / AFricA
Reports from India indicate that due to high ammonia prices Indian buyers are seeking a reduction of $80/t for fourth quarter phosphoric acid prices (currently at $885/t cfr with 30 days credit). With both Morocco and Tunisia already responding to poor phosphate fertilizer market conditions by cutting production (and sulphur consumption), there is more pressure building from buyers for price reductions in Q4.
Tunisia GCT has bought a spot cargo of 25,000t of German granular sulphur from solvadis reportedly in the low-$190s/t cfr. The ship loaded in Brake and is en route to Tunisia. GCT is still operating only one DAP line due to weakness in the market and covered sulphur inventory is now at a maximum of 300,000t. Q4 contract negotiations are about to begin, with GCT expecting the weaker market sentiment to result in substantial price reductions for Q4.
Morocco There are unconfirmed reports that due to low consumption and high stocks OCP may be looking to delay some final Q3 contract sulphur shipments into Q4. The powerful sulphur buyer has cut sulphur consumption through a rolling turnaround at Jorf Lasfar. With Q4 price negotiations about to begin, the downturn in the phosphates fertilizer market is understood to have resulted in OCP lowering its sulphur cost targets substantially for Q4.
libya Today 27 September NOC closes an export tender for 10-12,000t of sulphur.
egyptTwo small parcels of crushed lump sulphur have been sold and shipped into Egypt by Teotrade, one from Romania and one from Bulgaria. Both were priced below $160/t cfr.
Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
greeceA 3,000t parcel has also shipped from Soussaki, Greece to Bagfas, Turkey, while a cargo of AgipKuwait sulphur is being made to Greece. italyA cargo of 6,000t on offer by ExxonMobil has been picked up by Trammo believed in the mid-high $150s/t fob Augusta for shipment outside of the Med.
eAST europe
russia/Kazakhstan
Focus of attention is now on Q4 price negotiations. On the one hand major baseload consumers in North Africa – Morocco and Tunisia – have cut back sulphur consumption due to poor phosphate fertilizer prospects and are expecting a substantial price reduction on Q4 sulphur prices.
In contrast, it has been well established that supplies from the FSU will be cut back during Q4 due to a strong demand for rail wagons when the Volga Don navigation system closes for the winter. As a result suppliers were not expecting a significant change in netbacks for Q4.
SouTh/cenTrAl AMericA
BrazilTraders submitted offers this week on a Copebras enquiry for 25,000 t for December arrival into Santos. Highest offers were submitted from traders offering Middle East cargoes above $210/t cfr. Freights from AG ports to Santos for 25,000t are put at low-$30s/t.
Negotiations have begun between Vale and contract suppliers ex-USA, FSU and Middle East on Q4 pricing.
Severe vessel congestion continues to hamper the sulphur import business into Brazil.
Sulphuric Acid
MArKeT SuMMArY
Market clouded by uncertainty; Korea offers 100,000t under tender for 2013
The sulphuric acid market is still clouded by uncertainty, namely how much Chile will need to import in 2013. This week, the market awaits the results of a South Korean sales
Sulphur Vessel Arrivals Santos Sept 2012
Vessel/Vol `000t Supplier origin receiver eTA eTc
UBC Laguna/49 Swiss/Quantum Jose, Venezuela Vale/G3 10 July 22 Sept
Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
tender for hints of pricing direction. Korea Zinc has made an award to a trader for 100,000t of acid for next year delivery, and the move to sell under tender is a probable hedging strategy.
On the supply side, Northwest European availability is currently described as tight. Japanese suppliers are monitoring the Chinese market closely and if prices there are deemed too low, Chile will become an obvious option to offset the market. Chinese acid buyers have been targeting price drops for Q4 shipments, and Japanese suppliers have thus far been reluctant to consider.
On the demand side, Chile’s requirements in 2013 are crucial to global market balance. While Chilean imports are widely expected to peak this year as domestic supplies increase in 2013, consumption from Chilean buyers is likely to stay strong. Demand from North Africa this year has been slow because of various downstream production issues in Morocco and Tunisia, and it is expected to remain so for the remainder of this year. The Brazilian market has also been quiet recently as buyers adopt a wait-and-see attitude. There is speculation that buyers will come back for another 30,000-60,000t of spot acid before the end of this year.
On the fundamental side, the sulphur market faces further downward pricing pressure as demand from key market China fails to pick up during a difficult contract negotiation period. Non-ferrous metal prices on the LME have been stable this week. On copper, there are expectations that Chinese demand will recover by end 2012, and cash settlement price on 27 September dipped slightly by 1pc to $8,130/t on the LME. Zinc moved up by less than 1pc to $2,068/t. Nickel was traded at $17,930/t, again up by less
than 1pc on the week before with stocks reportedly rising at LME. Demand from the phosphate fertilizer market is flat-to-soft with a lot of length in supply. Phosphate prices are expected to erode further through October.
South Korea On 25 September, Korea Zinc closed a sales tender for 100,000t of sulphuric acid for 2013 delivery to restricted destinations. It is understood that cargo deliveries will be spread evenly throughout the year. The tender has been awarded to a trader at an undisclosed price. The move to sell under tender for next year’s delivery is believed to be a hedging strategy, and Korea Zinc is expected to consider further tenders in the coming few months depending on market conditions.
Another South Korean producer is also rumoured to be offering two spot cargoes for 2013 delivery, but this was not confirmed. Nonetheless there are expectations in the market for the producer to offer on a tender basis in October.
A contract seller is looking to rollover contract prices in China for Q4, and Chinese buyers have proposed price reductions thus far. China is a key market for South Korean smelter acid producers, and hence despite the price outcome deliveries in Q4 are expected to be stable.
JapanJapanese smelter acid suppliers remain in discussions with Chinese quarterly contract holders, and are under little pressure to settle on a low price. There are indications that Japanese suppliers will not consider prices below $40/t cfr China for Q4 shipments.
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Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
Spot smelter acid has been offered into China in the $40-45/t fob Japan range.
Sulphur and sulphuric acid trading between Japanese and Chinese companies is unaffected by an escalating political tension between the two countries over the disputed Senkaku, or Diaoyu, islands. There are no reports of disruptions for import/export activities. The islands have sparked diplomatic rows over the years.
indiaFACT has issued a new import tender for 9,000t of sulphuric acid for October-November shipment. The tender closes on 3 October. The buyer last entered the spot market for 9,000t back in June but did not make any purchases.
A total of 86,000t of acid have so far been lined up for September arrival in India, with the majority going to IFFCO.
Southeast AsiaA Thai buyer is in the spot market for around 5,000t of acid for October shipment, but no deal is concluded yet.
indonesiaLatest statistics show that sulphuric acid imports into Indonesia in June were up around 55,000t from the same month last year, because of a scheduled maintenance at PT Smelting in May. The increase can be attributed to the 47,000t from India and 16,000t from Japan in June. Indonesia received over 261,000t in the first half of 2012, up significantly from the same period last year. Year-to-date deliveries from South Korea exceeded last year’s total by around 95,000t.
india: Sulphuric acid arrivals in September/october
Supplier/Buyer
Vessel Tonnes load port dis port Arrival
Sterlite/IF-FCO
Global Challenge
20,000 Tuticorin Paradeep 05-Sep
Interacid/ IFFCO
Sky Dream 14,867 Japan Paradeep 09-Sep
Interacid/CIL
Sky Dream 4,070 Japan Vizag 11-Sep
Hindalco/ IFFCO
Ivy Galaxy 10,000 Dahej Paradeep 15-Sep
Hindalco/ IFFCO
Fairfield 19,500 Dahej Paradeep 24-Sep
Sterlite/IF-FCO
Bum Chin 18,000 Tuticorin Paradeep 26-Sep
Hindalco/IFFCO
Fairfield 19,500 Tuticorin Paradeep 5-Oct
Quantum/IFFCO
Rotterdam 20,000 Paradeep 25-Oct
Mitsubishi/IFFCO
Southern Hawk
13,500 Japan Paradeep 30-Oct
indonesia: Sulphuric acid imports (tonnes)
country Jun 12 Jun 11 ± (pc) J/Ju 12 J/Ju 11 ± (pc)
India 46,915 - - 78,928 - -
Japan 16,467 1 ∞ 28,216 3 ∞
South Korea 34 8,000 -99 135,931 41,244 230
Malaysia 28 - - 41 40 1
Singapore 14 - - 15 2 646
Taiwan 1 - ∞ 1 - ∞
Thailand - 1 - 5 2 130
Germany - - - 11 76- -86
World 63,458 8,002 693 261,725 41,371 533
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Argus FMB Sulphur Issue 12-39 | Thursday 27 September 2012
chinaIt is understood that Two Lions has committed 20,000t of spot acid for early October shipment. Destination of the cargo was previously speculated to be Oceania. The price is believed to be in line with Two Lions’ recent business in the range of $58-65/t fob China.
Chinese acid buyers have tabled decreases for Q4 contracts for Japanese and South Korean supplies. Third quarter contracts were finalised in the $35-45/t cfr China range, with the lower end reflecting South Korean tonnes. There are indications that Japanese suppliers are unlikely to settle at below $40/t cfr for Q4 shipments.
Weakness in the Chinese sulphuric acid is reflected by the 30pc drop in imports in August, to 87,000t, on last year. The drop is attributed to a 74pc dip in Japanese shipments in August. On a year-to-date basis, supplies from South Korea were almost unchanged from 2011, again demonstrating South Korea’s reliance on the Chinese market. Japanese acid deliveries showed a slight year-to-date dip of 4pc.
China exports were as expected for August, with Two Lions shipping 5,000t to Vietnam. In the first eight months of this year, Chinese acid exports fell by a disappointing 85pc on last year.
chileThe Chilean market is on hold as crucial annual contract negotiations continue to take place. Price bids are still heard at the sub-$100/t cfr level, but sellers are firm at $120-130/t cfr. Traders indicate that buyers will have to pay $115-120/t cfr for any fresh spot tonnes, though demand is slow at present.
As a result of low prices proposed by Chinese buyers for Q4, producers in the Far East may want to export more to Chile, adding pressure to the market.
Noracid is estimated to be running at 90-95pc of the 700,000t/year capacity.
Under normal contract business, three vessels have been fixed for Chile:• Interacid is understood to have fixed a vessel of 30,000t to load in the Far East for mid-October shipment• Trammo is understood to have fixed two 30,000t vessels to load in the Far East for October and November shipments
europeSome Q4 contracts have been finalised at a rollover of €70-80/t cfr.
Aurubis’s Pirdop copper smelter is due to restart on 29-30 September following an 18-day maintenance. With a normal capacity of 3,000 t/day, around 54,000t of acid have been lost due to the turnaround.
uSA sale of 10,000t ex-Europe was confirmed late last week for a buyer in the US Gulf Coast for October arrival. The price was finalised at $95/t cfr.
china: Sulphuric acid imports (tonnes)
country Aug 12 Aug 11 ± (pc) J/A 12 J/A 11 ± (pc)
South Korea 68,977 59,570 16 536,678 536,617 -
Japan 16,655 62,891 -74 202,663 210,575 -4
Taiwan 893 968 -8 6,591 6,597 -
US 21 3 658 117 232 -50
Germany - - 11 8 3 204
UK - - - - - 25
Thailand - 13 -100 10 29 -66
Other - - - 164 - -
World 86,546 123,446 -30 746,232 754,054 -1
china: Sulphuric acid exports (tonnes)
country Aug 12 Aug 11 ± (pc) J/A 12 J/A 11 ± (pc)
Vietnam 4999 14 ∞ 5,014 56 8,837
Hong Kong 277 127 118 1,676 1,377 22
North Korea 270 3 9718 600 39 1,458
US 59 39 54 311 269 16
South Korea 2 5 -60 34 26 30
Macau - 8 -100 14 24 -41
Mongolia - 0 - 120 362 -67
Taiwan - 2 -100 22 3 731
India - 18896 -100 - 90,657 -100
Indonesia - 18863 -100 - 18,863 -100
Japan - 0 - - - -
Chile - 17999 -100 18,520 36,519 - 49.29
Other - - - 17,014 131,528 -87
World 5607 55955 -90 43,324 279,723 -85
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A sulphuric acid spill that started at Nystar’s zinc smelter (165,000 t/year of sulphuric acid) in Clarksville led to part of a parkway being closed for 12 hours on 25 September. The parkway is now re-opened after crews cleaned up the leak from a tanker. The truck driver was injured after trying to stop the leak, according to media reports.
coMpAnY neWS
Australia/canadaXstrata Nickel Australasia has announced that it will suspend operations at Cosmos mine in Western Australia because of a prolonged period of low nickel prices and a strong Australian dollar. The exact timing was not revealed. The company has initiated a care and maintenance schedule, and will cut its employee numbers by 150.
Nickel concentrate produced from Cosmos is trucked to the Esperance port and shipped to the Xstrata nickel smelter in Sudbury, Canada. The suspension on Cosmos is unlikely to impact Sudbury’s output as Xstrata is expected to maintain production with its overall blend of feeds from various locations.
Since commercial operations began in April 2000, Cosmo yielded a total of 127,000 tonnes of nickel concentrate, including an estimated 4,200 tonnes thus far in 2012.
uSBHP Billiton has suspended operations at its Pinto Valley copper mine after a contractor was fatally injured at the operation in Arizona, US, on 22 September. The investigation is ongoing.
Pinto Valley mine was under construction to restart mining at the end of 2012, when it would boast a production capacity of 60,000t/year of copper concentrate.
SwitzerlandXstrata has extended a deadline for its board to decide whether to endorse Glencore’s $36bn proposal to merge. Xstrata has requested the extension from the UK Takeover Panel until 1 October.
An FMB joint venture
FCC’s new Strategy Report “World Processed Phosphates Outlook to 2026” analyses a market experiencing significant change and an industry regrouping to accommodate these fundamental shifts. Among the key issues addressed are:
