Sulphur prices for February lifting from Middle East suppliers have increased by $24-26/t compared with January, with the Qatari price set last week at $125/t fob, followed by similar rises this week from UAE state-owned Adnoc and Kuwaiti state-owned producer KPC.
This puts monthly prices at their highest since December 2018 and roughly on par with January 2019, when the Qatar sulphur price stood at $126/t fob and the average of the three Middle East prices at $126/t fob — equal to the February 2021 average (see chart).
But in January 2019, monthly prices were on a downward trend from their peak in the fourth quarter of 2018. Current price movements are bucking the usual trend for the beginning of the year, and no flattening of curve is evident as yet.
Covid-19 has subdued global refining rates and led to delays to plant maintenance. The resulting tight sulphur supply coupled with a recovering phosphate market, which supports sulphur demand, have led to a steep firming of spot sulphur pricing this year.
