Abu Dhabi's state-owned Adnoc has rolled over its March sulphur official selling price for the Indian subcontinent at $530/t fob Ruwais.
This follows state-owned QatarEnergy rolling over its March price at $520/t fob on 4 March.
These prices are well above last week's spot range, assessed at $494-496/t fob on 26 February, before the US-Israel attack on Iran. But the subsequent escalation of the conflict and the effective closure of the strait of Hormuz led to a jump in bunker fuel prices and insurance premiums as well as delays to vessel movements.
This has changed the previously softening sulphur price direction, with almost half of global seaborne sulphur exports left stranded. Offers to delivered markets have risen substantially, with some offers to China, Indonesia and India indicated in a range of $570-600/t cfr.
But most suppliers are opting to wait and see if sulphur vessel transit through the strait of Hormuz will resume in the near term, to better evaluate market conditions before making offers. Buyers are taking a similar approach before rushing to buy replacement supply for previous bookings from the Middle East.
Middle East shipments will also now be subject to substantial delivery costs, if they can be delivered, with some indicating a doubling of freight rates from the region. This will inevitably erode margins, provided the vessels can pass through the strait, adding to uncertainty in the sulphur market and weighing on activity while market participants evaluate conditions.
