Third-quarter contract prices for molten sulphur deliveries into Tampa, Florida, have been settled at a record high of $705/long tonne (lt) delivered, up by $50/lt from the $655/lt settled for the prior quarter.
The 8pc rise sets a new record after the second-quarter agreement had already surpassed the previous peak from 2008.
Spot export shipments have capitalised on the lack of sulphur flows out of the Middle East, with prices well above the contract level. The latest assessment for spot exports from US Gulf refineries stood at $1,100-1,150/t fob on 9 July.
US Gulf shipments reached unusual markets during the second quarter, including north Africa for fertiliser production and east Africa for copper belt consumers, as Middle East export flows dwindled.
The moderate contract range is thought to reflect affordability concerns for the downstream fertiliser market, where phosphate fertiliser demand has weakened because of high prices. This is part of a wider global trend, as higher costs have driven discounts for domestic sulphur consumers in many regions to secure fertiliser production.
Additionally, some sulphur producers in the US Gulf lack infrastructure to export solid sulphur, leaving them dependent on domestic liquid sulphur consumers and concerned about potential demand destruction causing storage tanks to fill at production sites.
