Global Suppliers Keep Raising Prices of SulfurNov 14th, 2017
Sulfur prices continue to grow in many different regions of the world. The price increase was announced by such major Middle Eastern producers of sulphur as Qatar petroleum state-owned Qatar Petroleum, oil and gas state-owned Abu Dhabi National Oil Company (ADNOC, UAE) and Saudi trading company Aramco Trading. As a result, the November official selling price for sulphur from large suppliers amounted to $ 54 – 61 per ton.
In China, the price of a granulated sulphur-based product has peaked for the past three year period. Compared to the previous quarter, the current price of sulphur from American suppliers – Tampa, Florida, has risen by $36 per gross ton. Supply prices climbed above the previous contracted ones in South America. Consider the case with a buyer from Brazil who had to pay $22 more than last time for a tonne of sulphur.
This indicates a very high growth of demand for sulphur, while the supply is still limited. In China, for example, part of the demand is satisfied through the sale of sulphur volumes accumulated in storage. However, the price is raised each time the transaction is held.
High prices for sulphur make the manufacturers of fertilizers, who use sulphur as raw material, increase the value of end products. Nevertheless, this does not solve the problem of raw materials availability and they are under the necessity of reducing the capacity utilization.
A greater part of the market participants have no decisive answer about the future situation in the sector, and accordingly, they cannot definitely predict whether to expect a decrease in the growth rate of sulphur prices.