Argus Sulphur

Formerly Argus FMB Sulphur

Issue 18-31  |  Thursday 2 August 2018

Executive summary prICES

Sulphur spot prices

India leading demand $/t ±

Over the last week, India's demand levels have totalled fob Vancouver 128-133 34

around 110,000t, with PPL and CIL stepping back in to the fob Middle East (excluding Iran) 134-138 t
spot market. This increased demand, which comes in prepa- fob Iran (lump-granular) 110-122 34
ration for the rabi season, has been accompanied by addi- fob Black Sea (lump-granular) 115-129 34
tional demand from Africa and Latin America, with prices in
fob US Gulf 130-135 t
all regions on a flat-to-firm footing at present.
fob Med (under 10,000t) 128-133 u
The Middle East August lifting prices were announced
cfr Med (under 10,000t) 145-150 34
by Qatar's Muntajat and Saudi Arabia's Aramco Trading at
cfr north Africa (lump-granular) 138-155 34
an increase on the July numbers. This has encouraged an
increase in prices when it comes to offers, so when the new cfr Brazil 145-149 34

round of purchase tenders are closed and prices are known, cfr India 153-156 34

firming is expected. cfr China (molten-lump-granular) 100-151 34

ex-works Nantong Yn/t 1,260-1,270 t

Market drivers

Key freight rates $/t

Domestic Chinese prices gain Loading Destination ’000t Low High
Ex-port prices in China gain Yn45/t on the week, with fur-
Vancouver China 50-60 20 22
ther increases expected to come.
Middle East EC India 30-35 16 18

TCO, Kazakhstan, closes tender Middle East N/River China 30-35 21 23

TCO has closed a second spot tender in as many weeks, Middle East South China 30-35 19 21

making an additional 60,000t available from the Baltics. Black Sea North Africa 30-35 25 27

US Gulf Brazil 35-40 18 20

Brazil spot tender award pending
Copebras is yet to award its most recent tender, but a price US$:YN exchange vs ex-port prices
in excess of mid-$150s/t cfr is expected.
Yn/t
Yn/$ (LHS)
1,300
30-60 day Outlook Sulphur dry bulk Nantong ex-warehouse low (RHS)

6.80 Sulphur dry bulk Nantong ex-warehouse high (RHS) 1,250

1,200

Firm as fourth quarter draws near 1,150

6.60
Spot prices are to firm as the fourth quarter draws near,
1,100
with the waning Chinese demand expected to make a U-
1,050
turn as winter logistics hamper supply in the FSU and North
6.40
America. Middle East supply tightness is also expected to 1,000

persist. 950

6.20 900
Jan Feb Mar Apr May Jun Jul

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 Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

Sulphur prices
Freight market summary $/t ±

Spot
Fertilizer freight rates continued to pick up this week
as the market despite a slightly dip in fuel prices with fob Vancouver 128-133 34

charterers more active than previously expected. August fob Middle East (excluding Iran) 134-138 t

is typically a seasonal lull for the freight market but fob Middle East netback 130-139 34

increasing grain shipments from the US Gulf and Black fob Iran (lump-granular) 110-122 34
Sea have kept the market ticking over. fob Black Sea (lump-granular) 115-129 34
But an appreciating Brazilian Real has slowed down fob US Gulf 130-135 t
exports from South America and the focus of the market
fob Med (under 10,000t) 128-133 u
is expected to shift further towards US exports from
cfr Med (under 10,000t) 145-150 34
both the Gulf and east coasts.
cfr north Africa (lump-granular) 138-155 34
Ships were booked from the US Gulf through to Europe
cfr Brazil 145-149 34
at $13,500/d with scrap runs from Europe to the Medi-
cfr India 153-156 34
terranean were traded at the same level. Fronthaul
voyages from the Black Sea to Asia were booked at cfr China (molten-lump-granular) 100-151 34

$22,500/d while journeys from the Baltic were priced ex-works Nantong Yn/t 1,260-1,270 t

slightly lower at $19,000/d. Contract - monthly/quarterly

In the fertilizer market, spot fixtures were limited but
fob Vancouver 3Q 2018 128-133
sulphur cargoes from the Mideast Gulf to China were
fob Middle East (excluding Iran) 3Q 2018 119-135
under discussion at $13,000/d while Handysize UAE to
fob Qatar QSP Aug 2018 134
south China cargoes were seen at $19/t and Handysize
fob UAE OSP Jul 2018 139
Saudi Arabia to India cargoes at $11.10/t.
The Supramax forward freight agreement market fob Black Sea (lump-granular) 3Q 2018 117-122

indicated that physical rates are still expected to fob US Gulf 3Q 2018 124-129

push higher moving into the end of this quarter and cfr north Africa (lump-granular) 3Q 2018 127-147
the fourth quarter. With September trading $500/d cfr Brazil 3Q 2018 145-149
above the current level and fourth quarter prices over cfr China (molten-lump-granular) 3Q 2018 100-151
$1,000/d above current levels — with rates forecast to cfr Tampa 3Q 2018 $/lt 121
spike well above these levels. cfr Benelux (loc refs) (molten) 3Q 2018 118-134

cpt NW Europe 3Q 2018 160-177

Asia
Sulphur freight $/t
Loading Destination ’000t Low High
China
Concluded business on a cfr basis in China remains low, with
Vancouver China 50-60 20 22
only two trades for small cargoes confirmed this week.
Middle East EC India 30-35 16 18
An ex-Vietnam cargo of 8,000t has been sold to a south
end-user in the high-$140s/t cfr, and a freight inquiry is now Middle East N/River China 30-35 21 23

in the market for 8,000t loading Nghi Son, Vietnam 18-22 Middle East South China 30-35 19 21

August for shipment to south China. Also, an ex-India cargo Middle East Brazil 30-35 20 22
of 15,000t, which is mixed crushed and granular product, Middle East North Africa 30-35 22 24
has been concluded in the low-$150s/t cfr. Black Sea North Africa 30-35 25 27
Offer prices have increased in the Chinese market to
Black Sea Brazil 30-35 24 26
around $160/t cfr on the high end following the announce-
Baltic Brazil 30-35 27 29
ments of the Middle East August prices at an increase on
Baltic North Africa 30-35 25 27
July. But, offers are far from voluminous as Chinese end-us-
ers continue to hold price ideas at lower levels and demand US Gulf Brazil 35-40 18 20

persists in other cfr markets. But, Chinese end-users are ex-

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Issue Ref: 130775

Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

Molten sulphur deliveries to Chinese ports

Phosphate market summary Vessel DWT Origin Discharge port ETA

Japan, Sode-
Koho Maru 1,787 Zhangjiagang 4-Aug-18
gaura
Japan, Kawa-
Market gets ready for final showdown Hestiana 3,599
saki
Weifang 30-Jul-18

The phosphates market has hit a critical juncture with Sulphur Espoir 3,999
Japan, Yoko-
Shanghai 30-Jul-18
hama
India and Pakistan looking to secure their final require-
ments for the rabi season over the coming few weeks. Sulphur Glory 2,999 Japan, Chiba Shanghai 24-Jul-18

There is still substantial demand to be met, and the

Sulphur Garland 4,965 S. Korea, Ulsan Qingdao 24-Jul-18
recent marginal appreciation in the Indian rupee has got
traders going long on Chinese DAP around $417-418/t fob.
But there is consensus that the market cannot realistically pected to step back in to the market in the coming weeks to
go any higher. Chinese producers concede that Septem- buy cargoes in preparation for the spring application season.
ber prices onwards will likely soften on seasonally lower In the crushed lump market, no new business has been
demand in India, which remains hamstrung around $429- confirmed this week but there are ex-Turkmenistan volumes
430/t cfr (two cargoes were confirmed sold in this range available for September, which are currently in the early
this week) thanks to the MRP, subsidy and weak rupee. stages of discussion.
Some sellers hope Pakistan will take up the slack but For the molten market, no new business has been con-
this looks unlikely. Stocks are very heavy with end-July in- firmed concluded. Discharge tanks are still reported as full,
ventories estimated to be around 550,000t. With arrivals with the discharging of molten sulphur to pools still prohib-
at 400,000t in August, stocks could rise towards 950,000t. ited because of environmental legislation. The gap between
With farmers facing higher prices this year versus 2017, molten and granular sulphur prices is expected to persist
local sources estimated total DAP demand will be down and grow at present.
by at least 250,000t to 2.1mn t. The China cfr price holds at $100-151/t.
The rest of Asia is not encouraging for sellers. Thailand
has moved out of season and there is no interest in Chi- Domestic Market
nese DAP currently. Latest import statistics indicate DAP Prices were increased at both Puguang sites by Yn20/t this
imports into Vietnam are significantly down due partly to week. Tonnes are now priced at Yn1,200/t ex-Wanzhou and
the anti-dumping duty on Chinese material.
China DAP fob vs sul import cfr
West of Suez presents the greatest chance of higher
prices. The US remains best placed basis limited supplies $/t China DAP fob low-high price spread (LHS)
and the need to replenish nutrients in the soil after a par- 450 China sulphur cfr low-high price spread (RHS) 300
ticularly heavy US crop harvest. Forward prices are firmer
for MAP – the latest MAP barge prices are steady at $415/ 400
250
st fob, equating to the $450s/t cfr Nola.
350
In contrast Brazil is flat at around $450/t cfr. This week 200
YUC sold 30,000t Chinese MAP there just below this level 300
while OCP Morocco has sold 50,000t a little higher at 150
250
$450-451/t cfr. Additional demand will also emerge in
Argentina in mid-August for October application. Time is 100
200
running out for Chinese material, with 11-44 prices suffer-
150 50
ing the most, falling to the low-$340s/t fob as the window Jul Oct Jan Apr Jul Oct Jan Apr Jul
of opportunity to ship to Latin America closes.
Overall, Argus assesses the market flat east of Suez
Currency exchange rates ($) 02 Aug
with marginal upside potential west, based more on tight
Euro (€) 1.1617
US supply and rising demand.
Chinese yuan (Yn) 6.8410
Brazilian real (R) 3.7561
View the methodology used to assess sulphur prices at Indian rupee (Rs) 68.6350
www.argusmedia.com/methodology. Your feedback is
always welcome at fertilizer@argusmedia.com

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Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

China port inventories

China port inventories

31/07/2018 01/08/2017 02/08/2016

Longkou 20 15 19
Qingdao 0 15 80
Zhenjiang 600 165 400
Zhanjiang 200 60 100
Fangcheng 295 170 425
Nantong 480 570 720
Tangshan 11 2 28
Beihai 80 70 40 Tangshan
Nanjing 40 10 10 Longkou
Qingdao
Total China port inventory ‘000t CHINA
Zhenjiang
Nanjing Nantong
26/07/2016 1,822 Yangtze
river
01/08/2017 1,077

31/07/2018 1,726 Fangcheng Zhanjiang

'000t
300 800 1,300 1,800 2,300 Beihai

Yn1,080/t ex-Dazhou. China sulphur stocks vs sulphur import price cfr

Ex-port prices have increased almost daily across the
week. Prices on 30 July were at Yn1,230-1,235/t ex-ware- $/t
mn t Sulphur stock vol CFR China Spot 190
house and had climbed to Yn1,240-Yn1,250/t ex-warehouse 1.9

and Yn1,260-Yn1,265/t ex-warehouse, by 31 July and 1 Au- 170

gust, respectively. At press time, ex-port prices were trading 1.7

150

at Yn1,260-1,270/t ex-warehouse, equivalent to low-$150s/t

cfr. 1.5 130

Domestic price increases continue to be attributed to the 110

ongoing depreciation in the Yn:USD exchange rate, in re-

1.3

sponse to the current China/USA trade war and the domes-

90

1.1
tic market continues to move in contradiction to the norm 70

when port stocks are at 20 month highs. The depreciation is

0.9 50
forcing more buyers to purchase domestic product as landed Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18

costs are deemed too expensive. Also, domestic Chinese

Sulphur deliveries to Indian ports
Volume Expected
Vessel Destination Origin Charterer Receiver
(t) Arrival Date

Roshak Paradeep Iran Swiss KIT/IFFCO 30,000 TBC

Aramis Paradeep TBC BGN PPL 35,000 TBC
Sulphur Guardian Vizag Japan Mitsui CIL 12,500 29-Jun-18
Darya Mahesh Paradeep Jubail Swiss PPL 38,500 26-Jun-18
Solin Paradeep Ras Laffan BGN IFFCO 30,000 22-Jun-18
Bulk Chile Paradeep Ras Laffan Tricon CIL 35,000 7-Jun-18
Sulphur Guardian Vizag Japan Mitsui CIL 12,500 25-May-18
Athos Paradeep Ras Laffan Swiss PPL 32,000 22-May-18
True Friend Paradeep Rajaei Fagro PPL 20,000 19-Apr-18
Yangtze Legend Paradeep Ras Laffan BGN KIT/IFFCO 35,000 1-Apr-18
Sulphur Guardian Vizag Japan Mitsui CIL 12,510 29-Mar-18

Argus Direct subscribers can download this data here

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Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

Spot Sales Selection 02 August 2018

Origin Seller Buyer Destn ’000t $/t bulk Shipment

Libya NOC BGN Undisclosed 2x8 mid-$130s/t fob Aug

Undisclosed Swiss Din Vu DAP Vietnam 20 high-$150s/t cfr Aug
Middle East Muntajat Swiss Undisclosed 35 mid-$130s/t fob Aug
Middle East Trader Ambatovy Madagascar 40 mid-$130s/t fob Aug
Open Trader Copebras Brazil 40 mid-high-$140s/t cfr Aug
Undisclosed BGN PPL India 30 mid-$150s/t cfr Jul
Iran IGCC Undisclosed Undisclosed 30 mid-$110s/t fob Jul
Qatar Muntajat BGN Undisclosed 30 mid/high-$130s/t fob Jun
Iran IGCC Undisclosed Undisclosed 30 mid-$120s/t fob Jun
Turkmenistan IPC Trader China 35 mid-$130s/t cfr Jun
Iran IGCC Undisclosed Undisclosed 30 mid-$120s/t fob Jun
Iran IGCC Undisclosed Undisclosed 30 mid-$110s/t fob Jun
Undisclosed Sun International Dinh Vu Dap Vietnam 15 mid-$140s/t cfr Jun
Undisclosed Tricon Akzo Argentina 15 mid/high-$150s/t cfr Jun
India MRPL Trader Undisclosed 15 high-$110s/t fob Jun
Middle East Trader CIL India 35 low-$140s/t cfr Jun
Iran IGCC Undisclosed Undisclosed 30 high-$100s/t fob May
Iran KHIPC Undisclosed Undisclosed 33 high-$110s/t fob May
Iran IGCC Undisclosed Undisclosed 30 mid/high-$110s/t fob May

Argus Direct subscribers can download this data here

traders are seeking higher Yn/t prices as they will require
prices at around Yn1,330/t ex-warehouse - equivalent to
$160/t cfr - to buy imported tonnes to replenish stocks.
Paper prices for September have been heard at around
Yn1,275-1,280/t.
Port stocks have ticked down to total 1.73mn t. This is
down 30,000t on last week. Liquidity for ex-port tonnes has
picked up in recent weeks as prices have increased on an
ex-warehouse basis by Yn225/t since 12 April, which has en-
couraged sellers to come to the market. But, port inventory
levels are expected to slide across August as the increased
domestic buying picks off tonnes that are not being rebuilt
because of the lack of import deals concluded in recent
weeks.
India
Around 110,000t sought under tender in India
Sulphur demand has now picked up, to total around 110,000t
from Indian buyers over the last week. The accumulation of
raw materials is linked to the impending September-March
rabi application season.
IFFCO closed a purchase tender for 35,000t for August
loading on 31 July. The cargo is for delivery to Paradeep
port and ex-Turkmen product has been secured with a price
sub-$150/t cfr attached. This price level is not deemed
repeatable in the market and offers are otherwise priced in
excess of $160/t cfr.
The last cargo secured by IFFCO was priced in the low/
mid-$150s/t cfr.
Trading house MMTC closed a purchase tender on 24 July,
for 6,500t of sulphur. The tender received just one techni-
cal offer from a trader and one pricing offer is now being
discussed, but no award was confirmed at press time. The
cargo is for shipment to Vizag port by end-August.
MMTC's inquiry is being sought on behalf of steelmaker Sail
and MMTC was last in the spot market in February when it
secured 7,500t for Sail at $130/t cfr from trader Fagro.
Rashtriya Chemicals and Fertilizers (RCF) is not heard to
have awarded its purchase tender for 3,000t, which received
three technical offers from two domestic sulphur producers
and one domestic trader.
The company last purchased 10,000t in mid-March from
domestic refiner and producer MRPL.
Fertilizer producer Paradeep Phosphate (PPL) has also
stepped in to the market this week with a purchase tender
for 30,000t +/-10pc of granular sulphur. The cargo is for
delivery to Paradeep port 15-19 September.
Details of the tender and the company's previous purchase
can be found here >>
A new spot purchase tender from fertilizer manufacturer
Coromandel (CIL) has also come to the market and the com-
pany is seeking 30,000-35,000t of granular sulphur +/-10pc.
Full details here >>
The India cfr price is held flat with the next indications of
repeatable business anticipated to come from PPL and CIL's
purchase tenders.
In the freight market, freight from the Middle East to West
Coast India has been indicated at $9-11/t.
In the domestic market, Fertilisers and Chemicals Travan-
core (FACT) will receive 14,000-15,000t of sulphur per month

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Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

Japan exports vs lowest assessed molten cfr China

from domestic producer and refiner BPCL, starting this
price
month. This is an increase from previous monthly deliveries
of 11,000-12,000t/month. FACT and BPCL signed a five year 17 Exports (LH scale) $/t
’000t
supply agreement in August 2017, which covers over half of 150 Lowest average China cfr price (RH scale) 160
FACT's consumption requirements. 120 120
90
Japan 80
First half sulphur exports down 4pc 60
Japan's sulphur exports in the first half of this year slipped 30 40
4pc, to total 630,000t. The drop in shipments can be linked
0 0
to the limitations on the discharge of molten sulphur at Chi- Jun Aug Oct Dec Feb Apr Jun
nese ports this year, because of environmental limitations. 17 18
2018
Japan shipped 512,000t to China during the first half of 2018,
2017
and this is down 5pc on the prior-year period.
Shipments to Indonesia also fell to total 45,000t, at a drop 0 500 1,000 1,500
of 6pc on the year. But, shipments to India have increased
by 42pc to total 36,000t according to Customs Data. Data Middle East
collected by Argus indicates that, during the first six months
of this year, the molten sulphur vessel the MV Sulphur Two August prices confirmed
Guardian made three deliveries to Vizag port for CIL. The The August Qatar Sulphur Price (QSP) has been set at $134/t
vessel discharged around 12,500t per visit and was chartered fob Ras Laffan/Mesaieed.
by Mitsui. Continue reading >>
In June, Japan exported 99,000t of sulphur, at an increase The August price from Aramco Trading has been set at
of 28pc on the year, with China discharging 77,000t at a rise $138/t fob Jubail.
of 13pc on June 2017, despite limitations on molten sulphur Continue reading >>
discharge still being heavily in play across the first part of The increase in lifting prices was expected because of
June in particular. supply tightness in the Middle East for spot tonnes and also

SULPHUR this week

Chinese ex-port prices

increase Yn45/t.

Turkey’s Tupras holds

monthly e-tender.

Brazil’s Copebras close a

spot purchase tender. India’s PPL and CIL
Middle East August prices enter the spot purchase
firm, so far. market.

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For more information visit http://www.un.org/Depts/Cartographic/map/profile/world.pdf

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Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

Sulphur spot price comparison

nets back to span $123-129/t fob.
$/t
Spot prices have been assessed at $134-138/t fob on recent
200 spot business to Madagascar of ex-UAE product and also the
increase in lifting prices and tightness in the Middle East
180 fob Vancouver
fob Middle East spot market.
cfr China
160

140
Iran
Supplier IGCC has postponed the closing date of its spot and
term tenders by a further seven days. Each will now close on
120

100 6 August.
The company is offering a spot tender to sell 30,000t, as
80
well as a term tender to sell 360,000t.
60
2017 Apr Jul Oct 2018 Apr Jul
Middle East quarterly fob midpoint

the increase in inquiry and buying levels seen in recent $/t

180
weeks.
160
135 138
140
Third quarter prices range $119-135/t fob 127
120 116
Third quarter contract prices for the Middle East have been 110 62.5
100
assessed at $119-135/t fob. 100
75.5 77.5
The high end is linked to trader contracts with Adnoc 80 73
69 157.5
73.5

and KPC at an increase of $10/t on the high end of second 60

quarter prices. 40
Middle East producers have settled with north African 20
buyers on a cfr basis, which nets back to $119-125/t fob, and 0
sales to Brazil have been settled also on a cfr basis which 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18

Freight inquiry highlights

21,500-22,000t loading
Kavkaz, Russia, 9-11 August
for shipment to Selaata,
Lebanon.

35,000t loading Ruwais,

UAE 9-12 August for ship-
ment to Gabes or Sfax,
Tunisia.

25,000-30,000t loading
Bandar Abbas, Iran 30 July-
9 August for shipment to
Paradeep or Paradeep and
Vizag, India.

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Argus Sulphur
Both tenders were originally tabled to close on 23 July,
but the closing date has now been postponed to 6 August,
with IGCC citing financing issues as the reason.
Fob Iran prices remain flat at $110-122/t this week, reflect-
ing the level of last completed business.
For smaller cargoes traded from Iran, supplier NIOPDC sold
10,000t from its Azot refinery at $106/t ex works on 28 July.
The sale was completed on the Iranian Mercantile Exchange
with the base price set at $96/t ex works.
New granulation unit starts up
Refiner and sulphur producer Bandar Abbas Oil Refining has
launched a new 250 t/d granulation unit at the Bandar Abbas
refinery.
Continue reading >>
Kuwait
Clean fuels project set for August start-up
Kuwait's state-owned refiner KNPC will begin commissioning
its long-delayed $16bn Clean Fuels Project (CFP) in August.
It expects its oil products to meet more environmentally
friendly specifications in the second quarter of next year.
Continue reading >>
Qatar
The MV Ocean Spirit will load 35,000t of sulphur at Ras
Laffan for shipment to Aqaba, Jordan. The vessel is being
loaded by trader BGN and is linked to contracts.
UAE
Adnoc Logistics and Services is in the freight market with an
inquiry for 50,000t, loading Ruwais 12-16 August, for ship-
ment to Jorf Lasfar or Safi ports, Morocco. The inquiry is
linked to quarterly contract shipments.
Technical issues persist at Ruwais port, which were origi-
nally expected to come to a conclusion early-this month.
Recovery of normal operations has not yet been given a time
line.
Africa
North Africa spot prices are held flat on recent business in
the range of $138-155/t cfr.
Egypt
Cfr prices are placed on the high end in the low/mid-$150s/t
for granular product on recent sales including ex-Libyan
product. But, buyers are still seeking prices towards the
mid/high-$140s/t cfr on the whole.
Demand is expected to pick up as the year progresses,
Copyright © 2018 Argus Media group
Licensed to: Alireza Golchin, Iranian Gas Commercial Company
Issue 18-31  |  Thursday 2 August 2018
Sulphur deliveries to Jorf Lasfar port
Vessel Tonnage Origin ETB
Maritime Faith 32,131 Ras Laffan, Qatar Discharging
Spar Vega 50,000 Ruwais, UAE 10-Aug-18
Merila 53,013 16-Aug-18
Bomar Oyster 53,000 Ruwais, UAE 11-Aug-18
Discharging total 188,144
Argus Direct subscribers can download this data here
with a new phosphoric acid plant being commissioned in
September/October. The project has already secured ex-
Saudi Red Sea loading tonnes for stock piling purposes.
A freight inquiry has been issued for 5,000t loading Ca-
gliari, Spain for 1-3 August loading and shipment to Abu Qir.
Libya
The most recent NOC tender for two 8,000t cargoes was
awarded to trader BGN and a price over $130/t fob Mellitah
has been attached. The MV Sally M is loading 8,000t for ship-
ment to Egypt.
There is also a freight inquiry in the market for 8,000t
loading Mellitah 4-6 August for shipment to Sfax or Gabes,
Tunisia.
Madagascar
Ambatovy has secured product to cover its September
requirements with a cargo of UAE origin via a trader. The
cargo will be loaded end-August/early-September and is
priced in the mid/high-$130s/t fob.
The company covered its August demand via a trader, and
the cargo was again of Middle East origin.
Morocco
Fertilizer producer OCP's sulphur demand is heard to be
covered for the rest of this quarter by contract and previous
spot purchases.
The fourth unit of the Jorf Phosphate Hub is still expected
to commence start-up in the fourth quarter of this year.
Senegal
ICS/Indorama has secured four cargoes of 30,000t in size to
cover its third quarter sulphur requirements.
Two cargoes were secured from the UAE and two were
secured from the FSU.
An additional 6,000t has been secured from the Mediter-
ranean, for arrival in early-August.
Page 8 of 14
Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

South Africa imports

The following inquiries have been put to the freight mar-
ket this week, linked to ICS/Indorama's recent purchases: ’000
Other Qatar Saudi Arabia Canada UAE
„„ 35,000t, loading Kavkaz, Russia 10-12 August, for ship- 150

ment to Dakar. 125

100
„„ 6,000t, loading Bourgas, Bulgaria 6-8 August, for ship-
75
ment to Dakar.
50

Tunisia 25

The validity of Groupe Chimique Tunisien's (GCT) tender for 0

Jan Mar May Jul Sep Nov Jan Mar May
60,000t of sulphur expired on 1 August. The tender is heard 2018
to have been awarded to a trader in the low/mid-$150s/t cfr 2017
0 100 200 300 400 500 600
range. Thousands

The company was originally targeting a price under $150/t

cfr, which is in line with the top end of quarterly contract priced in the high-$120s/t fob. The cargo is around 6,000t in
prices. size and is for August loading.

South Africa Turkey

There are reports of demand for two end-August loading
cargoes. One for fertilizer consumption and the other linked
to metals demand.
The MV IVS Merilion, with a deadweight of 32,000t is
scheduled to arrive at Richard's Bay port on 15 August. The
bulk carrier departed Ruwais port in UAE on 31 July.
The vessel is likely carrying a sulphur cargo to cover de-
mand from the copper belt.
1H exports drop 34pc
South Africa imported 34pc less sulphur in the first half of
2018 compared to a year earlier, at 211,000t.
Ex-UAE product continued to dominate imports, but fell
52pc on the year, to 72,000t. Ex-Saudi Arabia and ex-Qatar
imports totalled around 68,000t each, with volumes from
Qatar increasing 77pc on the year.
For June, imports fell 65pc on last June to around 19,000t,
with 95pc coming from the UAE, at around 18,000t.
Mediterranean
Mediterranean fob prices have softened on the low end to
range $128-133/t on new business this week. An easing in
supply tightness has been noted by market participants. Cfr
prices hold steady in the range of $145-150/t.
Greece
Supplier targets for August loaders are in excess of $135/t
fob, but this has not been concluded so far.
Italy
The most recent Exxon tender, for loading Augusta port, was
Domestic refiner and sulphur producer Tupras held its e-
tender for product for sale across August on 31 July.
The company offered 8,500t big bags ex-Izmit which have
been sold in the range of $116-119/t ex-works. The bulk
offering consisted of 5,500t ex-Izmit, which was sold at
$133-135/t ex-works and 5,500t ex-Izmir which was sold at
$121-122/t ex-works.
The ex-works prices are not considered translatable to the
fob Mediterranean market when tonnes land at port.
The details of the last e-tender are here >>
East Europe
Contracts settled in full for FSU tonnes
Third quarter contract prices have been assessed at $117-
122/t fob, with the limited range linked to a lack of Russian
product - of crushed lump or granular form - having been
confirmed concluded under quarterly negotiations for load-
ing from the Black Sea because of logistical restrictions.
Also, Polish tonnes have been concluded for shipment to
Morocco's OCP on a formula basis rather than fixed price.
The range represents netbacks from cfr settlements with
buyers in Brazil and north Africa for product largely of Rus-
sian and Kazakh origin.
Kazakhstan
Sulphur producer TCO closed a tender earlier this week for
60,000t loading in the second half of September. The cargo
was not confirmed as having been awarded at press time.
The company's last tender was concluded in the low/mid-
$130s/t fob to a trader, for first half September loading.

Copyright © 2018 Argus Media group Page 9 of 14

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Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

Black Sea fob quarterly midpoint Ust-Luga, Russia - Sulphur loading vessels
Vessel DWT Destination Departure
$/t

140 Nordorinoco 38,040 Brazil, Santos 30-Jul-18

120 119.5
120 Mercury Ocean 53,452 Morocco, Jorf Lasfar 28-Jul-18
103
95 94.5 96.5
100 92.5
Icy Bay 37,570 Senegal, Dakar 26-Jul-18
80 68.5
62 64 Interlink Fidelity 38,782 Senegal, Dakar 21-Jul-18
57.5 56.5 55.5
60
Nordic Busan 35,800 USA, Tampa 18-Jul-18
40
Koushun 60,297 South Africa, Richards Bay 15-Jul-18
20

Madison Eagle 63,301 Israel, Ashdod 12-Jul-18

0
3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18
Lowlands Patrasche 58,105 Senegal, Dakar 5-Jul-18

KM Vancouver 63,374 Brazil, Santos 21-Jun-18

Poland
Grupa Azoty Siarkopol is in the freight market with an in- HTC Delta 56,533 Morocco, Jorf Lasfar 18-Jun-18
quiry for 25,000-28,000t loading Gdansk for shipment to Jorf
Argus Direct subscribers can download this data here
Lasfar or Safi, Morocco 6-7 August. The inquiry is linked to
quarterly contract shipments for OCP. West Europe

Russia
A cargo of granular sulphur, for August shipment from Rus-
sian refineries, was sold in the mid-$110s/t cpt Ust-Luga.
The following freight inquiries are for loading at Ust Luga
port:
„„ 55,000t loading 10-12 August for Jorf Lasfar, Morocco.
„„ 35,000-45,000t loading 11-13 August for Tampa Bay, US
Gulf.
„„ 44,000t loading 5-7 August for Ashdod, Israel.
Turkmenistan 50pc. Argus data indicates a maximum of around 40,000t
In the freight market the following inquiries are linked to
previously concluded deals for shipment to China:
„„ 30,000-40,000t loading Bandar Abbas, Iran for shipment
to China. Prompt loading.
Belgium
The molten sulphur carrying MV Iver Ability, with a dead-
weight of 12,497t, arrived at Antwerp port on 26 July, after
departing Le Havre port, France on 22 July.
Germany
Regional sulphur supply could improve next month, with the
force majeure at ExxonMobil's/Shell's Grossenkneten gas
plant expected to end in the coming weeks, and normal pro-
duction rates expected to return by the close of the month.
The force majeure was declared around 28 May and
reduced sulphur recovery rates at the gas plant by around
has been taken out of the regional supply market as a result
of the action.
North America

„„ 21,500-22,000t loading Bandar Abbas, Iran for shipment
to Fangcheng, China, end-July/early-August.
„„ 30,000-50,000t bagged sulphur loading Bandar Abbas,
Iran for shipment to Nantong, China in mid-August.
North American sulphur demand down with Plant City
North American sulphur demand declined by 6pc year-over-
year to 3.8mn t in January-May with the removal of con-
sumption at Mosaic's Plant City facility.
Continue reading >>

Canada
Vancouver prices were stable at $128-133/t fob with little
reported activity and tight supply. The most recent reported
business and netbacks from China remain in the range.
Syncrude in Alberta is understood to be producing at

Copyright © 2018 Argus Media group Page 10 of 14

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Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

above 50pc of its normal rates as it ramps up after the
unplanned outage. Supply continues to be constrained from
Pine River in British Columbia with only minimal volumes
from the producer in the market.
USA
The US Gulf range rose $3/t on a midpoint basis to $130-135/
t fob, with the most recent business within the range and
no activity reported below $130/t fob. Healthy production
has brought some volumes to ports and suppliers have found
strong offshore pricing.
The domestic market is balanced with buyers comfortable
and producers not offering excess volumes. Sulphuric acid
producers have continued consuming high volumes amid a
strong market, while demand from phosphate producers is
stable.
Third quarter contract USG prices assessed
The US Gulf third quarter contract price has been assessed
at $124-129/t fob. With product for shipment to Brazil and
north Africa included in the range including fob settlements
as well as netbacks from cfr conclusions.
Latin America
Brazil
Third quarter contracts assessed
Brazil's third quarter contract price is assessed at $145-149/t
cfr and reflects prices for product of Middle East, FSU and
US Gulf origin.
The price is at an increase of $11.5/t at the mid-point,
but it has been indicated that the majority of cargoes were
priced towards the mid-$140s/t cfr rather than the high-
$140s/t cfr by the buy-side.
Copebras issues sulphur purchase tender
Copebras (CMOC) has closed a purchase tender for 46,000t
+/- 5pc of bright yellow sulphur for delivery to Santos port in
Brazil, from 25 September-5 October.
Continue reading >>
The tender had not been awarded a press time but an
award over mid-$150s/t cfr Brazil is anticipated.
Brazil cfr quarterly price midpoint and imports

Mosaic to put vessel back in service ’000t $/t

Mosaic is expected to have its Sulphur Enterprise back in 800 160
$147.5
service by the end of August. The vessel has been docked 700 $145.0
140
for repairs since a fire in early May. $135.5
600
Continue reading >> 500
120

400 $90.5 $93.0 100

300 $95.0
80
200
60
100
0 40
Q1 Q2 Q3 Q4
2017 imports 2018 imports
2018 contract 2017 contract price

Brazilian sulphur vessel line-up

Port, Terminal Buyer Charterer/Origin Vessel 000t Estimated time of berth

Santos, Tiplam Mosaic Trammo/Russia Nordorinco 33 26-Aug

Santos, Tiplam Mosaic KPC/Shuaiba Lavieen Rose 30 17-Aug
Santos, Tiplam Mosaic Total/Russia Nord Treasure 32 2-Aug
Santos, Tiplam Mosaic Adnatco/Ruwais Hanton Trader II 35 26-Jul
Santos, Tiplam Mosaic Mosaic/USA Dacc Adriatico 40 24-Jul
Santos, Termag Elekeiroz Trammo/Russia Km Vancouver 6 20-Jul
Santos, Tiplam Mosaic NA/USA Saga Morus 35 19-Jul
Santos, Termag CMOC Trammo/Russia Km Vancouver 53 19-Jul
Santos, Termag Galvani Trammo/Russia Km Vancouver 9 19-Jul
Santos, Tiplam Mosaic Oxbow/USA Adventure 1 39 4-Jul
Santos, Tiplam Mosaic Mosaic/USA Genco Oean 10 3-Jul
Santos, Tiplam Mosaic Total/USA Saga Frigg 33 29-Jun

Copyright © 2018 Argus Media group Page 11 of 14

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Argus Sulphur
imo 2020 news
Scrubber count insufficient to take up excess
HSFO
Marine fuel scrubber installation planning surged over the
last six months to include 842 vessels, but that scrubber
count is still insufficient to absorb a projected surplus in
high-sulphur residual fuel oil in 2020.
Continue reading >>
Scrubber adoption rate varied by vessel type
A variety of strategies have emerged among shipowners as
they contend with the prospect of marine sulphur emissions
limits under IMO rules set for implementation in 2020.
Continue reading >>
Galp aims for IMO compliance by 2H 2019
Portugal’s integrated oil firm Galp expects all of its bun-
ker fuel production to be compliant with the International
Maritime Organisation’s (IMO) 0.5pc cap on sulphur emissions
from marine fuels by the second half of 2019.
Continue reading >>
IMO rule throws St Croix a lifeline
The idled 350,000 b/d St Croix refinery in the US Virgin
Islands could be on course to resume operations, spurred by
new marine fuel limits that take effect in 2020.
Continue reading >>
Vale looks to scrubbers to reduce freight costs
Brazilian iron ore producer Vale will require that 48 of its
contracted very large ore carrier (VLOC) vessels now under
construction must use either scrubbers or LNG in order to
reduce freight costs by $5/t from current levels.
Continue reading >>
Repsol to stop selling its Spanish fuel oil in 2020
Spanish integrated oil and gas company Repsol is planning
to stop selling the fuel oil produced at its Spanish refiner-
ies from 2020, as part of plans to adapt to the International
Maritime Organisation's (IMO) 0.5pc sulphur limit on bunker
fuels.
Continue reading >>
Port states to test 10,000 ships for sulphur
compliance
Maritime authorities around the world are launching a joint
inspection campaign to check ships' compliance with marine
fuel pollution laws and to gain enforcement experience
Copyright © 2018 Argus Media group
Licensed to: Alireza Golchin, Iranian Gas Commercial Company
Issue 18-31  |  Thursday 2 August 2018
before the global 0.5pc sulphur cap comes into force from
2020.
Continue reading >>
NEWS AND ANALYSIS
ExxonMobil 2Q output falls as spending rises
ExxonMobil’s second-quarter output fell by 7pc even as the
major boosted its spending by nearly 70pc as natural gas
production slumped.
Continue reading >>
Reliance refining margins fell in April-June
Indian private-sector refiner Reliance Industries' (RIL) gross
refining margin (GRMs) fell by 11.8pc in the April-June quar-
ter from a year earlier.
Continue reading >>
Pemex: Three refinery overhauls still planned
Mexico’s state-run Pemex expects the incoming administra-
tion to stay the course on plans to overhaul three of the
country's six refineries in coming months.
Continue reading >>
Ma’aden’s increased capacity boosts phosphates
output
Saudi Arabian fertilizer and mining company Ma’aden
increased its DAP, MAP and NPK production in the second
quarter, driven by the ramp-up of its new joint venture.
Continue reading >>
Trump again offers to meet with Iran's leaders
US president Donald Trump today said he would set no pre-
conditions for a meeting with the leaders of Iran, contradict-
ing a strategy that his senior political advisers have outlined.
Continue reading >>
ICL boosts Chinese TSP output, rock production
drops
Israeli fertilizer producer ICL increased its global output of
phosphate in the second quarter, driven by a rise in TSP
volumes produced at its Chinese joint venture. But main-
tenance work at various plants affected phosphate rock
output.
Continue reading >>
PhosAgro fertilizer output up in 1H
PhosAgro fertilizer production rose by nearly 14pc on the
year in January-June to over 4.5mn t. Second-quarter output
was up by over 9pc year on year, at 2.2mn t.
Continue reading >>
Page 12 of 14
Argus Sulphur Issue 18-31  |  Thursday 2 August 2018

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