Sulfur markets hold firm amid market uncertainty: industry event

Sulfur markets are holding firm this week despite uncertainty roiling global markets, trade sources said April 9.

As US tariffs take full effect, sulfur traders pointed to "cautious confusion" and a wait-and-see approach amid market volatility.

Bullish sentiments due to factors such as low domestic stock levels and strong demand in Southeast Asia and Southeast Africa have thus far kept prices elevated, a European-based trader said at an industry conference organized by The Sulphur Institute April 8-10 in Florence.

"Even though there are some uncertainties, the markets have remained firm," the trader said. "There isn't any drama yet."

Chinese domestic prices appeared to level off at around $270-275/mt CFR equivalent early in the week, but a separate buy tender for a 35,000-50,000 mt cargo was confirmed and reported by Platts at $297/mt CFR Indonesia, scheduled for April delivery to Obi Island.

The tender netted back to the low $280s/mt FOB Middle East, the European trader said. Platts most recently assessed the FOB Middle East spot price (excluding Iran) April 3 at $284-286/mt FOB, which was the highest level since July 14, 2022, when they were assessed at $310-350/mt FOB.

Shifting crude slates

In Europe, the loss of Russian supplies along with the shift to lighter, sweeter crude slates, along with turnarounds in Mediterranean refineries, have tightened supplies of both granular and liquid sulfur, a European refining source said.

"We have a lot of demand, but we don't have a lot of product," the refiner source said.

A European barge operator who transports liquid sulfur from refineries said there has been a "shortage of work" since the Russian war in Ukraine cut off the supply of heavy, sour crude into Europe.

Normalizing trade with Russia would have a limited effect on the overall shortage in Europe, but would not be enough to meet the overall demand, a consultant source said at TSI. Creating new trade flows from eastern Canada, which is under some discussion at the conference, would take years with permitting efforts involved on both sides of the Atlantic, he said.

In the Mediterranean, there was reported lost production due to engineering works at the Isab Refinery in Sicily, which has a total capacity of around 80,000 mt/year, according to data from former owner Lukoil from 2023.

Greece's largest oil processing company Hellenic Petroleum's ELPE refinery was also expected to undergo maintenance from April until July, sources at the conference said. The refiner produces around 200,000 mt sulfur annually, they said.

The companies did not respond to requests for comment.

Platts, part of S&P Global Energy, assessed its CFR Mediterranean, small lots, granular price at $265-$270/mt on April 4, compared to $165-$167/mt CFR assessed on Jan. 2.