Argus Sulphur

Formerly Argus FMB Sulphur

Issue 18-28  |  Thursday 12 July 2018

Executive summary prICES

Sulphur spot prices

Third quarter settlements start $/t ±

Quarterly contract settlements have started across the fob Vancouver 128-133 34

globe. Traders settled with UAE's Adnoc in the mid-$130s/t fob Middle East (excluding Iran) 132-135 34
fob before the quarter commenced. Now, more conclusions fob Iran (lump-granular) 110-123 34
are reported, with Morocco's OCP settling in the range of fob Black Sea (lump-granular) 115-125 34
$127-143/t cfr and suppliers indicating Brazil 3Q prices are
fob US Gulf 125-130 t
sitting in the high-140s/t cfr for tonnes fixed so far.
fob Med (under 10,000t) 127-133 34
A question mark still hangs over European molten con-
cfr Med (under 10,000t) 145-150 34
tracts as supply limitations continue, but the number on the
cfr north Africa (lump-granular) 132-143 34
table continues to be widely reported as a $10/t increase
on the second-quarter ranges. Also in the molten market, cfr Brazil 145-149 34

Tampa contract negotiations have started to come to a close cfr India 154-159 34

with an increase on 2Q concluded so far. cfr China (molten-lump-granular) 105-148 u

ex-works Nantong Yn/t 1,160-1,180 u

Market drivers

Key freight rates $/t

Tampa settlements so far at $121/lt Loading Destination ’000t Low High
Tampa's 3Q molten sulphur contracts have started settling at
Vancouver China 50-60 20 22
an increase of $5/t on the second quarter.
Middle East EC India 30-35 16 18

Tunisia enters the spot market Middle East N/River China 30-35 21 23

There is currently around 90,000t of spot demand from Tuni- Middle East South China 30-35 19 21

sian end-users, with tenders closing next week. Black Sea North Africa 30-35 24 26

US Gulf Brazil 35-40 19 21

Molten and crushed limitations in China
Limitations on the discharge of molten and crushed lump China sulphur stocks vs sulphur import price cfr
sulphur continue in China, limiting buyer interest for both
forms. $/t
mn t Sulphur stock vol CFR China Spot
190
1.9

30-60 day Outlook 170

1.7

150

China prices moving against wider market 1.5 130

The forecast remains unchanged with flat-to-firm prices 110

expected in most markets other than China. 1.3

In China, demand is lacklustre on the basis of high stock 90

1.1
levels which will increase as July progresses, and the depre- 70

ciation of the Yn against the US$ continuing to put buyers off

0.9 50
stepping in to the import market. Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18

Copyright © 2018 Argus Media group Available on the Argus Publications App
Argus Sulphur Issue 18-28  |  Thursday 12 July 2018

Sulphur prices
Freight market summary $/t ±

Spot
Fertilizer freight rates kept largely steady this week on
minimal activity across both basins as the seasonal lull fob Vancouver 128-133 34

started to slow the market. fob Middle East (excluding Iran) 132-135 34

Supramax rates did tick up slightly as the buoyant fob Middle East netback 127-142 u

bunker fuel market increased owners’ optimism and fob Iran (lump-granular) 110-123 34
fronthaul cargoes were under discussion at around fob Black Sea (lump-granular) 115-125 34
$20,000/d. Black Sea grain exports increased as their fob US Gulf 125-130 t
exporting season approaches and voyages from there
fob Med (under 10,000t) 127-133 34
to China were estimated at around $17,000-$18,000/d.
cfr Med (under 10,000t) 145-150 34
Transatlantic rates from the US Gulf to the Mediter-
cfr north Africa (lump-granular) 132-143 34
ranean were around $15,000/d. Conversely the Pacific
cfr Brazil 145-149 34
basin was relatively inactive with few coal cargoes
cfr India 154-159 34
available and rates ticked lower, which could draw more
vessels to the Atlantic basin. There were few fertilizer cfr China (molten-lump-granular) 105-148 u

cargoes booked. ex-works Nantong Yn/t 1,160-1,180 u

The Supramax forward freight agreement market Contract - monthly/quarterly

ticked higher for July and August cargoes, both prices
fob Vancouver 3Q 2018 128-133
around $20,000/d. The 2019 contracts, however, re-
fob Middle East (excluding Iran) 2Q 2018 107-125
mained under pressure and then ticked down.
fob Qatar QSP Jul 2018 132

fob UAE OSP Jul 2018 139

Asia fob Black Sea (lump-granular) 2Q 2018 88-105

fob US Gulf 2Q 2018 109-117

cfr north Africa (lump-granular) 2Q 2018 110-135

China cfr Brazil 2Q 2018 131-140
Granular sulphur prices are reported to have softened this
cfr China (molten-lump-granular) 3Q 2018 105-148
week with deals in the high-$140s/t cfr concluded. But,
cfr Tampa 2Q 2018 $/lt 116
confirmed deals are few in number as end-users report high
cfr Benelux (loc refs) (molten) 2Q 2018 108-124
inventory levels, little buying interest and thin offers from
cpt NW Europe 2Q 2018 150-167
suppliers. Domestic traders are also absent from the market
as the Yn/$ depreciation places fresh cfr tonnes at a big gap
to Yn/t prices.
Crushed lump discharge is not allowed at Nantong, Zhenji- Sulphur freight $/t
ang or Nanjing ports because of environmental restrictions. Loading Destination ’000t Low High
South China ports are still allowing the discharge of lumps,
but the reduction in discharge locations is expected to have Vancouver China 50-60 20 22
an impact on prices. The last confirmed concluded crushed
Middle East EC India 30-35 16 18
lump business was in the mid-$130s/t cfr and there are
Middle East N/River China 30-35 21 23
unconfirmed reports of a deal having been concluded in the
Middle East South China 30-35 19 21
low-$130s/t cfr this week.
In the molten market, no new business is reported this Middle East Brazil 30-35 20 22

week but bids are now sitting below $100/t cfr with tank Middle East North Africa 30-35 22 24
inventory levels remaining high. Qingdao tank can now dis- Black Sea North Africa 30-35 24 26
charge molten sulphur after restart delays but the levels are Black Sea Brazil 30-35 23 25
still said to be high. There are also expectations that molten
Baltic Brazil 30-35 26 28
demand will wane in the summer months as high tempera-
Baltic North Africa 30-35 24 26
tures force consumers in the metals and chemicals industries
US Gulf Brazil 35-40 19 21
to operate at lower capacities.

Copyright © 2018 Argus Media group Page 2 of 14

Argus Sulphur Issue 18-28 | Thursday 12 July 2018

Molten sulphur deliveries to Chinese ports

Phosphate market summary Vessel DWT Origin Discharge port ETA

A game of two halves Thetisia 12,841 Japan, Chiba Lianyungang 12-Jul-18

With apologies to non-football fans (we had to get some
reference to the World Cup in the report - hard luck Grace Sulphur 2,999 Japan, Chiba Runzhou 11-Jul-18

England) the phosphates market, much like the England Sulfur Advance 4,959 Japan/NA Lianyungang 7-Jul-18
team, is a game of two halves.
The overall tone remains undoubtedly stable to firm
for 3Q. But while east of Suez is a volume game at stable Currency exchange rates ($) 12 Jul
prices (we estimate 380,000t DAP traded in India, Bangla- Euro (€) 1.1658
desh and Pakistan this week), it is the western hemi- Chinese yuan (Yn) 6.6667
sphere that has got traders excited. Brazilian real (R) 3.8434
Indian rupee (Rs) 68.3850

Brazilian MAP cfr levels jump

Brazil has bought just 25,000t MAP on the spot market
this week from the US, Morocco, Russia and Mexico. Al-
though a paltry amount, prices firmed by $10/t in a week
- the sharpest rise seen since early May. Bulls argue with
good reason that Brazil is way behind on MAP imports
(latest GTIS data shows MAP imports down nearly 40pc
year on year for the first half of 2018 while NPs imports
are down 57pc). Hence, if Brazil attempts to close this
import shortfall then a mini bull run on cfr levels looks
highly likely - particularly given China's reticence to
export MAP. Also, given a relative lack of availability from
the US and Russia and Mexico concentrating increasingly
on the domestic market, then the MAP market looks at
least balanced to short in 3Q.
Argus has assessed the China cfr price at $105-148/t cfr.
Domestic market
After four weeks of stable pricing, Puguang prices have been
increased this week. The Wanzhou price has been increased
by Yn30/t to Yn1,170/t ex-yard and Dazhou tonnes have been
increased by Yn10/t to 1,050/t ex-yard.
Nantong prices have traded in the range of Yn1,160-
Yn1,180/t ex-warehouse this week with around 20,000t re-
ported as sold in this price bracket. This range is equivalent
to low/mid-$140s/t cfr.
The paper market has been trading at a similar level to
the Nantong price across the week.

China DAP fob vs sul import cfr

India DAP price capped by MRP/subsidy
In contrast, it is hard to argue that Indian subcontinent $/t China DAP fob low-high price spread (LHS)
prices can rise much further. India bought a lot of DAP 450 China sulphur cfr low-high price spread (RHS) 300
this week, estimated at 290,000t) but all at unchanged
prices in the low-$430s/t cfr. The MRP/subsidy and weak 400
250
rupee all mean Indian importers cannot afford to go any
350
higher. Moreover, the July import line up is massive at 200
1mn t. This, plus the lack of available rakes on the Indian 300
railway system, is slowing movement to the interior and 150
250
creating a backlog in the logistical system. Indian demand
may slow temporarily as a result, but we still think India 100
200
needs to import over 2mn t DAP by the end of the fertil-
150 50
izer year. Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul
Pakistan did pay marginally higher prices for an Aus-
tralian DAP cargo in the mid-$430s/t cfr, but this merely
resets the normal premium over India. View the methodology used to assess sulphur prices at
www.argusmedia.com/methodology. Your feedback is
These cfr values versus Chinese fob asking prices
always welcome at fertilizer@argusmedia.com
at $420/t fob mean traders are being squeezed in the
region. So something has to give in August. But for now,
Chinese producers are comfortable. Follow us on Twitter @ArgusMediaFertz
for market insights from our editors.

Copyright © 2018 Argus Media group Page 3 of 14

Argus Sulphur Issue 18-28  |  Thursday 12 July 2018

China port inventories

China port inventories

10/07/2018 11/07/2017 12/07/2016

Longkou 23 13 17
Qingdao 0 15 84
Zhenjiang 410 220 330
Zhanjiang 200 40 90
Fangcheng 365 230 455
Nantong 530 460 650
Tangshan 10 2 25
Beihai 70 60 30 Tangshan
Nanjing 40 20 13 Longkou
Qingdao
CHINA
Total China port inventory ‘000t Zhenjiang
Nanjing Nantong
Yangtze
12/07/2016 1,694 river

11/07/2017 1,060

Fangcheng Zhanjiang
10/07/2018 1,650
Beihai
'000t
300 800 1,300 1,800

Port stocks are currently at 1.65mn t, at an increase of
40,000t on the week according to official figures. Market
participants place inventories at 1.7mn t and increasing.
India
Rashtriya Chemicals and Fertilizers (RCF), will open the
technical and unpriced offers for a 3,000t purchase tender
at 15:00 Indian Standard Time on 16 July. The price offer
round will be intimated separately and offers are requested
to remain valid for 15 days from the opening of the tender.
It has been requested for product from overseas suppli-
ers to be shipped within 30 days of the purchase order to
Hay Bundar port and domestic suppliers are requested to
commence delivery immediately after the placement of the
purchase order.
RCF was last in the bulk solid sulphur market in mid-
March. The company awarded a tender for 10,000t of sul-
phur to domestic refiner and sulphur producer MRPL.
The India price remains flat at $154-159/t cfr on no new
business.
In the freight market, an inquiry for 15,000t loading New
Mangalore 21-23 July for shipment to Fangcheng or Nantong,
China is linked to the last sales tender from MRPL. The ten-
der was awarded in the very-high-$110s/t fob and linked to
trader Swiss Singapore.
The next export tender from the company is expected to

Sulphur deliveries to Indian ports

Volume Expected
Vessel Destination Origin Charterer Receiver
(t) Arrival Date

Bulk Chile Paradeep Ras Laffan Tricon CIL 35,000 7-Jun-18

Darya Mahesh Paradeep Jubail Swiss PPL 38,500 26-Jun-18
Solin Paradeep Ras Laffan BGN IFFCO 30,000 22-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
Artman Paradeep Iran Microtop Trading KIT/IFFCO 39,000 26-Mar-18
Shi Long Ling Vizag/Chennai Ruwais BGN CIL 30,000 19-Mar-18
Queen Sapphire Paradeep Ruwais Swiss PPL 39,000 18-Mar-18
Inlaco Accord Vizag Rajaei Fagro SAIL/Andhra Sugar/KPR 20,000 11-Mar-18

Argus Direct subscribers can download this data here

Copyright © 2018 Argus Media group Page 4 of 14

Argus Sulphur Issue 18-28  |  Thursday 12 July 2018

Spot Sales Selection 12 July 2018

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

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
Middle East Trader PPL India 35 mid/high-$130s/t cfr May
Qatar Muntajat Trader Undisclosed 35 high-$110s/t fob May
Middle East Vale/Mosaic Brazil 40 mid-$130s/t cfr Apr

Argus Direct subscribers can download this data here

be in the market in the coming weeks. 234,000t, at a drop of 29pc on the year.
In May, nearly 70,000t of sulphur was delivered to Aus-
Vietnam tralia, with the majority coming from Canada. The volume
Dinh Vu DAP will close a purchase tender for 20,000t for delivered is however down 40pc on May 2017.
August shipment on 16 July.
The company was last reported in the market in early May, Australia imports
when 15,000t-20,000t was secured in the mid-$140s/t cfr ’000t
under tender from trader Sun International. 150 Other South Korea Qatar Canada
120
Oceania
90

60
Australia
30
Jan-May imports down 29pc
Australia’s import volumes continue to diminish, follow- 0 18
17
May Jul Sep Nov Jan Mar May
ing the closure of the First Quantum Mineral Ravensthorpe
2018
operations. The facility was put in to care and maintenance 2017
in September and has yet to restart. The volumes most
0 200 400 600 800
impacted are those of Qatari origin. Thousands
In the first five months of 2017, around 136,000t of Qatari Middle East
sulphur was shipped to Australia but so far this year nothing
has been imported from the country. In fact, no ex-Qatar Further 3Q contract confirmations
sulphur has been delivered to Australia since June last year. Following earlier settlements between traders and UAE's
The number one sulphur supplier to Australia now contin- Adnoc at mid-$130s/t fob for the third quarter, end-user
ues to be Canada, shipping nearly 232,000t in the first five contract price confirmations have commenced.
months of this year, at an increase of 22pc on the year. Shipments of ex-UAE and ex-Kuwait product to north
South Korean origin product totalled around 1,000t, and Africa have been priced in the $140s/t cfr, netting back to
the remaining supply was sourced from Oman, Italy, Malaysia $119-125/t fob Middle East. Confirmation from some buyers is
and Germany, according to customs data. still pending.
In total, between January-May, Australia imported For shipment to Brazil, UAE product is priced in the high-

Copyright © 2018 Argus Media group Page 5 of 14

Argus Sulphur Issue 18-28  |  Thursday 12 July 2018

Sulphur spot price comparison Reported Iran Sales Tenders

Volume,
Supplier Type Price Timing
$/t
'000t
mid/high-$120s/t
200 IGCC 30 Crushed lump Jan-18
fob
fob Vancouver
IGCC 35 Granular mid-140s/t fob Jan-18
180
fob Middle East
IGCC 30 Crushed lump mid-$100s/t fob Feb-18
cfr China
160
IGCC 35 Granular mid-130s/t fob Feb-18
140 KHPC 30 Granular mid-$100s/t fob Feb-18
IGCC 55 Granular mid-$100s/t fob Feb-18
120

Raintrade 35 Granular $110/t fob Feb-18

100
IGCC 30 Crushed lump $110/t fob Feb-18
80 IGCC 30 Granular $110/t fob Feb-18

60
Raintrade 35 Granular high-$100s/t fob Apr-18
2017 Apr July Oct 2018 Apr Jul low/mid-$110s/t
IGCC 30 Granular May-18
fob
mid/high-$110s/t
IGCC 30 Granular May-18
fob
mid/high-$110s/t
$140s/t cfr and nets back to high-$120s/t fob, but buy-side KHIPC 33 Granular May-18
fob
and ex-Kuwait prices could not be confirmed at press time. IGCC 30 Crushed lump high-$100s/t fob May-18
mid/high-$110s/t
Middle East fob prices for the third quarter are so far indi- IGCC 35 Flaked May-18
fob
cated at $119-135/t fob. IGCC 30 Crushed lump mid-$110s/t fob Jun-18

In the spot market, an ex-UAE cargo has been sold by a IGCC 30 Granular mid-$120s/t fob Jun-18
low/mid-$120s/t
trader for shipment to Madagascar. The 40,000t cargo will IGCC 30 Granular
fob
Jun-18
load in early-August. IGCC 30 Crushed lump mid-$110s/t fob Jul-18
No other spot business has been confirmed with the next IGCC 30 Granular low-$120s/t fob Jul-18
deal expected following the conclusion of the Muntajat IGCC 30 Crushed lump $110/t fob Jul-18
tender on 17 July.

SULPHUR this week

China granlar prices soften

on new business.

Spot demand emerges in

Tunisian market.

OCP, Morocco, report

Tampa 3Q settlements concluding 3Q contracts Iran’s KHIPC issues
so far made at $121/lt 127-143/t cfr. sales tender closing
delivered. 14 July.

Disclaimer: Argus depicts geo-political borders as defined by the United Nations Geospatial Information Section.
For more information visit http://www.un.org/Depts/Cartographic/map/profile/world.pdf

Copyright © 2018 Argus Media group Page 6 of 14

Argus Sulphur
Iran
KHIPC issues sulphur sales tender
Sulphur producer Khark Petrochemical (KHIPC) has issued a
sales tender for 30,000t +/-10pc of granular sulphur for 25-31
July loading.
The tender closes at 12:00 Tehran time (8:30 GMT) on 14
July and bids will remain valid until 18:00 Tehran time (2:30
GMT) on 17 July.
KHIPC's last spot tender was awarded at the end of April.
Around 33,000t of granular sulphur was sold at $117/t fob
Kharg Island for first-half May loading.
The last Iranian granular sulphur cargo was sold by Iranian
sulphur supplier IGCC last week at $123/t fob Assaluyeh.
IGCC is not offering any sulphur to the spot market
against tender this week, but has indicated it may return to
the market with product in 2H July.
Supplier NIOPDC is not offering any sulphur to the market
this week, but indicated it should have product available in
the coming week.
NIOPDC usually offers around 10,000t at a time, and last
sold this volume on the Iranian Mercantile Exchange on 25
June in the mid-90s/t ex works.
There is an inquiry in the freight market for 30,000t of
bagged sulphur to load at Bandar Abbas 20-25 July for ship-
ment to China.
Freight inquiry highlights
15,000t loading Beaumont,
US Gulf 1 July-31 August for
shipment to Bilbao, Spain
or Helsingborg, Sweden.
Disclaimer: Argus depicts geo-political borders as defined by the United Nations Geospatial Information Section.
For more information visit http://www.un.org/Depts/Cartographic/map/profile/world.pdf
Copyright © 2018 Argus Media group
Issue 18-28  |  Thursday 12 July 2018
Jan-Jun exports up 44pc
Iran exported 511,000t of sulphur during the first half of
2018 according to customs data, at a 44pc increase on the
previous year.
Argus collected data shows nearer 593,000t was sold for
export against tender in the year to June.
China continued to be the main export market, receiving
394,000t, up by 15pc. India and Indonesia received 77,000t
and 39,000t respectively, each up from zero the year before.
For the month of June, Iran exported 97,000t, up by
10pc on the previous June. China received 100pc of these
volumes.
Forward to July, a further 90,000t has since been sold for
export from Iranian ports against tender according to Argus'
data.
The most recent awarded tenders were issued by IGCC for
30,000t of crushed lump and 30,000t of granular sulphur,
and priced at $110-123/t fob Iran, respectively.
Qatar
The latest spot sales tender from state-owned marketer
Muntajat will close on 17 July.
The company is offering 35,000t of granular sulphur for
loading at Ras Laffan/Mesaieed in August.
The company's previous tender, which was awarded in
20,000t loading Bandar
Abbas, Iran 15-25 July for
shipment to Adabiya or Abu
Qir, Egypt.
35,000t Yanbu, Saudi
Arabia 21-23 July for ship-
ment to Jorf Lasfar or Safi,
Morocco.
Page 7 of 14
Argus Sulphur Issue 18-28  |  Thursday 12 July 2018

mid-June was for a 35,000t July loading cargo, went to
trader BGN in the mid/high-$130s/t fob Ras Laffan/Mesaieed.
Saudi Arabia
The MV Venture Joy departed Jubail port on 8 July sailing
for Toamasina, Madagascar. The vessel has a deadweight of
43,272t and is linked to the sale by trader Tricon to Am-
batovy.
UAE
The MV Observator departed Ruwais port on 3 July and is
scheduled to arrive at Fangcheng, China on 22 July. The bulk
carrier has a deadweight of 56,624t.
Operational constraints continue at the Ruwais Terminal
SHT-2 regarding reclaimers and stackers. Operations are now
expected to recommence as normal by early-August.
Sulphur deliveries to Jorf Lasfar port
tonnes is also pending.
North African consumers will not be receiving any sulphur
from Russia's Austrofin/GazpromExport because of logistical
restrictions preventing shipment to Black Sea ports for load-
ing and overseas shipment.
So far, north Africa third-quarter prices are indicated in
the range of $127-147/t cfr depending on origin and buyer.
In the spot market, prices are still placed in the low-
$140s/t cfr for granular product with higher prices for car-
goes over 10,000t unable to be confirmed with all transact-
ing parties.
Egypt
Granular prices are reported to be ranging $145-150/t cfr in
the Egyptian market at present.
There are also reports that an ex-Saudi cargo loading Red
Sea has been sold in to the country in this price bracket.

Vessel Tonnage Origin ETB

Madagascar
Lia 55,000 Jubail, Saudi Arabia 7-Jul-18 Ambatovy has secured its August demand requirements,
Al Yasat II 53,534 Ruwais, UAE 14-Jul-18 having purchased a 40,000t cargo of ex-UAE product via a
Karvuna 14,000 Mediterranean 16-Jul-18 trader. The price is reported to be equivalent to the mid-
Global Hope 52,659 Shuaiba, Kuwait 18-Jul-18 $130s/t fob and will load in early-August.
Abu Al Abyad 53,508 Ruwais, UAE 22-Jul-18
Ionic 53,000 Ruwais, UAE TBC Morocco
Helian Song 52,000 Ruwais, UAE TBC
OCP is expected to be out of the spot market in the near-
term with 3Q contract tonnes and other spot purchases
Spar Vega 50,000 Ruwais, UAE TBC
covering demand.
In the freight market, there are two inquiries for shipment
Discharging total 383,701
to either Jorf Lasfar port or Safi. One is for 22,000-25,000t
crushed lumps loading Rabigh and Yanbu 10-12 July and an-
Argus Direct subscribers can download this data here other for 35,000t granular sulphur loading Yanbu 21-23 July.

Africa
Third quarter contract settlements begin
The confirmation of settlements for third quarter contracts
has started.
Moroccan fertilizer producer OCP has settled contracts in
the range of $127-143/t cfr including crushed lumps, Mediter-
ranean, Polish, Kazakh, and ex-Middle East tonnes. Prices for
shipment to Tunisia's Groupe Chimique Tunisien (GCT) have
not yet been confirmed with the buy-side.
On the supply-side, UAE and Kuwaiti origin tonnes are
confirmed to range mid-to-high-$140s cfr north Africa. And
Mediterranean supply has also been confirmed in the range
of $127-143/t cfr.
Polish sulphur supplier Grupa Azoty has not confirmed con-
cluding with north African buyers and has a price target of
around $130/t cfr. Confirmation of prices for ex-Kazakhstan
Senegal
ICS/Indorama has purchased a 30,000t cargo from the UAE
this week, fulfilling the company's demand requirements for
the third quarter.
The purchase is indicated in the $130s/t fob Ruwais, but
could not be confirmed by the supplier at press time.
In the freight market, an inquiry for 30,000t loading Ust
Luga, Russia, for shipment to Dakar 23-25 July is linked to a
previous deal.
Tunisia
Groupe Chimique Tunisien (GCT) has issued a spot tender for
60,000t of sulphur to be delivered in two 30,000t parcels to
supplement product already heard to have been purchased
under third quarter contract.
Offers are asked to be submitted between 16-18 July and
remain valid until 1 August.

Copyright © 2018 Argus Media group Page 8 of 14

Argus Sulphur
Tifert is also reported to be in the market seeking 30,000t
for July shipment.
The MV Mount Taranaki with a gross tonnage of 19,817t
arrived at Sfax port on 7 July. the vessel loaded at Cherno-
morsk, Ukraine.
Mediterranean
Expectations continue for fob prices to move in excess of
the mid-$130s/t when new business is concluded.
On a cfr basis, no new concluded business is heard but
negotiations are taking place in Turkey.
Italy
Eni's Taranto refinery to restart in next few days
Integrated Eni's 84,000 b/d Taranto refinery in southern
Italy will restart over the next few days after a maintenance
shutdown that began on 5 June.
Continue reading>>
Greece
Labour strike at Hellenic Petroleum
A labour strike at the Hellenic owned Aspropyrogos and
Elefsis refinery complex will start on 12 July and is expected
to continue on until 16 July.
While the impact of the strike on sulphur production is
not yet known, it is not thought to be significant.
Spain
Repsol’s Tarragona refinery restarts from maintenance
Integrated energy group Repsol has restarted almost all of
the fuel area units that were down for maintenance at its
180,000 b/d Tarragona refinery, after a planned 40-day stop-
page.
Continue reading>>
Repsol will have further maintenance at its A Coruna refin-
ery during 4Q. The maintenance will see a number of units
- including the sulphur recovery unit - shutdown for 22 days.
The impact of the shutdown on the company's overall
sulphur recovery rates is thought to be minimal.
Turkey
Sulphur buyer and fertilizer producer Toros Agri is heard to
be in the spot market with prices being negotiated in the
$150s/t cfr, but no business was heard concluded at press
time.
Copyright © 2018 Argus Media group Page 9 of 14
Issue 18-28  |  Thursday 12 July 2018
West Europe
Disparate 3Q targets in a tightening market
Tight domestic supply continues to disrupt fundamentals in
West Europe's molten market.
Negotiations for third quarter shipments are currently in
full-swing and the expectation is largely for prices to firm
from 2Q levels when negotiations are settled.
So far, expectations for a $10/t increase on both cfr Ben-
elux and cpt NW Europe contract prices has been noted from
a number of participants on both the buy and sell-side. But,
buyer and seller price targets continue to be relatively wide
ranging and a consensus has not yet been reached.
Some sellers are expressing targets for price increases as
high as $30/t, highlighting the extent of tightness in the mar-
ket currently, with the force majeure at Grossenknetsen see-
ing sulphur production rates drop to around 50pc at the gas
field until 2H August at the earliest, the switch to processing
sweeter crudes reducing sulphur recovery volumes at key
refineries, and rail strikes in France alongside proposed road
tax increases in Germany and Belgium impacting transport
logistics. The impact in transport logistics in particular has
prompted some sellers to target cpt NW Europe settlements
at higher levels than cfr Benelux this quarter.
Some buyers on the other hand have expressed targets
for a price roll-over or single digit increase, highlighting the
obligation of suppliers to fulfil contract deliveries ahead of
seeking to take advantage of price opportunities in the spot
market, as well as the inability for west European consumers
to absorb further quarterly price increases, with contract
prices having already firmed for the last four consecutive
quarters.
At present, it is too early to gauge how long negotiations
will last or where prices will be settled.
For the spot market, an increase in inquiries has been
noted, with suppliers in both Europe and the Mediterranean
reporting greater interest for tonnes to west Europe. A sale
of Italian molten product to Germany has been widely heard
at around $315/t cfr.
France
Jan-May exports dip 39pc
France has exported 39pc less sulphur in the year to May,
compared to last year.
Spain rose to become the number one buyer, with deliv-
eries to Spain accounting for 46pc of the French total. Last
year, exports to Spain were negligible.
Exports to Morocco dropped by around 50pc on the year,
to just 8,000t. Volumes to Italy stayed flat at 2,000t.
In May, exports remained roughly the same as the previ-
Argus Sulphur Issue 18-28  |  Thursday 12 July 2018

ous May; at 4,000t. But this time, Spain secured the largest Spot demand is also heard in the country for imported
share instead of Germany. German exports for May fell to product.
almost zero this year.
Poland
Ust-Luga, Russia - Sulphur loading vessels There are reports that Grupa Azoty could have a 25,000t
Vessel DWT Destination Departure
cargo available for August shipment and spot sale.
Lowlands Patrasche 58,105 Senegal, Dakar 5-Jul-18
North America
KM Vancouver 63,374 Brazil, Santos 21-Jun-18

HTC Delta 56,533 Morocco, Jorf Lasfar 18-Jun-18

Canada
Vancouver fob prices were stable at $128-133/t fob with the
Strategic Explorer 39,880 USA, Tampa 15-Jun-18 most recent business to Mexico and the netbacks to China
within the range. Supply remains extremely tight out of the
All Star Atlas 63,250 USA, Tampa 13-Jun-18
port, with production impacted by maintenance and the
Ultra Bellambi 61,470 Morocco, Jorf Lasfar 10-Jun-18 continued outage at Syncrude in Alberta.
Fertinal in Mexico has awarded its August requirement in
Sakira Naree* 63,023 Argentina 6-Jun-18
the low-$130s/t fob Vancouver.
Glarus 46,513 USA, Tampa 29-May-18 USA
US Gulf prices moved up $6.50/t on a midpoint basis to $125-
Arietta A 56,947 South Africa, Richards Bay 23-May-18
130/t fob on increased bids. A recent tender from the region
Intrepid 52,346 USA, Tampa 17-May-18 was reported to receive bids above $130/t fob, though no
business was confirmed.

Argus Direct subscribers can download this data here

East Europe
Settlement confirmations awaited
Reports continue of settlements having been made for the
third quarter. Russian tonnes for shipment to Brazil are re-
ported to have been concluded in the high-$140s/t cfr, which
nets back to low/mid-$120s/t fob. But, the buy-side is yet to
confirm.
In Morocco, prices are concluded in the range of $127-143/t
cfr, but there are of yet no indications where ex-FSU product
sits - other than for Polish tonnes.
Poland's Grupa Azoty has not confirmed concluding nego-
tiations with north Africa, but has price targets at around
$130/t cfr north Africa which would net back to the $100s/t
fob Gdansk. The supplier will have around 75,000t of prod-
uct available shipped in 25,000t cargoes; one for each month
of the quarter.
When it comes to spot there are reports from market par-
ticipants of a large volume of ex-FSU crushed and granular
sulphur having been tendered at the start of this week but
details could not be confirmed with the trading parties at
press time.
Lithuania
According to rail data, in the year to July, Lithuania has
received just over 286,000t of Russian origin sulphur.
Mosaic 3Q Tampa up $5/lt amid rising market
Mosaic has completed its third quarter sulphur contracts
at $121/lt delivered Tampa, up by $5/lt from the second
quarter.
Continue reading>>
Nutrien has not confirmed completing its third quarter
agreements.
US May sulphur trade rises amid higher Canadian supply
US sulphur exports and imports climbed in May from a year
earlier as Canadian supply re-entered the market following
issues in early-2017.
Continue reading>>
Latin America
Brazil
Quarterly negotiations are reported by some Middle East
producers and FSU suppliers to have concluded when it
comes to cargoes for shipment to Brazil under contract. The
prices by these sell-side parties have been placed in the
high-$140s/t cfr.
The buy-side indicates that settlements are ranging the
$140s/t cfr for this quarter. Some sell-side confirmation of
3Q Brazil contract prices is remaining so an assessment can-
not be made this week.

Copyright © 2018 Argus Media group Page 10 of 14

Argus Sulphur Issue 18-28  |  Thursday 12 July 2018

Brazil Sulphur Imports ('000 t)

Containers are priced in the mid-$160s/t cfr for shipment
Country Jun-18 Jan-Jun 18 Jan-Jun 17
to Brazil, and no new spot business for bulk shipments has
been reported this week. USA 38 344 392
Russia 96 324 116
First half imports hit new high Kazakhstan 27 174 250
Brazil's first half imports totalled 1.2mn t, at an increase UAE 38 113 161
of 8pc on the year. This is the highest January-June import Canada 0 78 41
volume Brazil has recorded, according to customs data. Bra- Poland 28 55 54
zil's spot market activity has picked up since the acquisition
Saudi Arabia 0 36 0
of Vale's fertilizer operations in the country by USA based
Qatar 0 32 0
Mosaic in the early part of this year, and is likely to account
Other 38 47 98
for the increase.
The USA continues to be Brazil's key supply partner, ship-
World 238 1,203 1,112
ping 344,000t in the first six months of this year. But, this is
at a drop of 12pc, with tightness in US Gulf export volumes Brazil imports v spot and contract cfr prices
most likely having curbed shipments. ’000t Other UAE Canada $
Kuwait Russia US
Russia shipped 324,000t up over 170pc on the year. Rus- Kazakhstan Cfr spot avg Midpoint
300 250
sian sulphur is largely shipped to Brazil under quarterly
250 200
contract and with shipments to north Africa limited across 200
this year because of logistical limitations, more tonnes have 150
150
been available for shipment to other destinations. On top of 100
100
that, there has been more spot activity from Russian sup- 50 50
plier GazpromExport, so spot shipments as well as contract 0 0
shipments had the opportunity to increase. Jun Sep Dec Mar Jun
17 18
Imports of Kazakh sulphur totalled 174,000t and this is 2018
at a drop of 30pc, despite shipments of sulphur from the 2017
Kashagan project having picked up and remained consistent 0 500 1,000 1,500 2,000
across the first six months of this year. Kazakh origin sulphur
is also largely sold to Brazil under contract.
The UAE remains the biggest Middle Eastern supplier to shipments from Poland increased to 55,000t. According to
Brazil, shipping 113,000t to the country, also at a drop of Argus collected data, The MV Million Bell delivered 35,000t
30pc. Ex-UAE product is mainly sold to Brazil under quarterly of Canadian sulphur to Mosaic in April.
contract but maintenance at Adnoc's Habshan and Shah op- Kuwait has supplied just one shipment of 30,000t in the
erations in the first half of the year curbed some availability first six months of this year aboard the MV Xing Rong Hai.
from the country, and increased shipments to Morocco's OCP Sulphur from Kuwait is again supplied under quarterly con-
could also have curbed availability for Brazilian buyers. tract but since the closure of the Shuaiba refinery, availabil-
Canadian supply totalled 78,000t, up 92pc on the year, and ity has been restricted.

Brazilian sulphur vessel line-up

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

Santos, Tiplam Mosaic NA/Ruwais Hanton Trader II 35 26-Jul

Santos, Tiplam Mosaic Mosaic/USA Dacc Adriatico 40 24-Jul
Santos, Tiplam Mosaic Shell/USA Newchang 39 22-Jul
Santos, Tiplam Mosaic NA/USA Saga Morus 35 19-Jul
Santos, Tiplam Mosaic Adnatco/UAE Aghia Skepi 39 12-Jul
Santos, Termag CMOC Trammo/Russia Km Vancouver 53 15-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
Santos, Tiplam Mosaic Mosaic/USA Adiyata 38 25-Jun
Santos, Tiplam Mosaic Trammo/Russia Kiran Anatolia 39 19-Jun

Copyright © 2018 Argus Media group Page 11 of 14

Argus Sulphur
Second quarter imports totalled 520,000t, up 5pc on the
first quarter, with Russia and Kazakhstan the biggest suppli-
ers.
In June, Brazil imported 238,000t, down 7pc on the year.
Russia supplied 96,000t, up over 390pc on the year. The limi-
tations in shipments to north Africa can be linked to this.
The USA supplied 38,000t and the UAE 38,000t also.
Mexico
Fertinal has secured around 55,000t for August loading and
delivery. The cargo is ex-Vancouver and priced in the low
130s/t fob.
NEWS AND ANALYSIS
PetroChina Daqing upgrade to boost ESPO Blend
demand
State-controlled PetroChina has started work on an upgrade
of its 190,000 b/d Daqing Petrochemical refinery in the coun-
try’s northeast, which will enable the plant to process up to
70,000 b/d more ESPO Blend crude from Russia. The project
is scheduled to come on line in October 2020.
Continue reading>>
Citgo Corpus Christi reports sulfur unit malfunc-
tion
Citgo reported a sulfur unit malfunction over the weekend at
its 165,000 b/d refinery in Corpus Christi, Texas.
Continue reading>>
Mexico reform outlook waits on president-
elect's alliances
Mexico’s president-elect Andes Manuel Lopez Obrador and
his Morena party won a sweeping electoral victory on 1
July. But they will still need more allies to make constitu-
tional changes such as altering the country’s historic energy
reform.
Continue reading>>
Idemitsu, Showa Shell agree on April 2019
merger
Japanese oil firm Idemitsu will merge with rival oil company
Showa Shell in April next year — two years later than the
original target date — after winning support from Idemitsu’s
founding family following a two-year battle over control of
the firm.
Continue reading>>
OMV's 2Q output up by 24pc on year
Austrian integrated OMV produced 419,000 b/d of oil equiva-
Copyright © 2018 Argus Media group Page 12 of 14
Issue 18-28  |  Thursday 12 July 2018
lent (boe/d) in the second quarter this year, up by 24pc on
the corresponding period last year but down by 4pc from the
first quarter this year, it said today.
Continue reading>>
BASF plans $10bn chemicals site in China
Germany's BASF is exploring the possibility of developing a
chemicals production site in China under a $10bn investment
project it expects to complete by 2030.
Continue reading>>
Opec reassures on supply, gives 2019 forecasts
Opec today moved to reassure on its ability to support oil
market stability, even should global demand grow faster
than its new forecast.
Continue reading>>
IEA sees supply tightness supporting oil prices
Global spare capacity might be "stretched to the limit" as
producers increase supply, and these concerns are likely to
continue to underpin oil prices, the IEA said today.
Continue reading>>
US House, EPA move to revoke WOTUS rule
US regulators and legislators are taking steps to repeal the
expanded definition of the Waters of the US (WOTUS) rule
before it goes into effect in 2020.
Continue reading>>
IMO 2020 news
EPA to probe if fuel sulfur limits harm shipping
The US Environmental Protection Agency (EPA) said it will
review whether sulfur limits for marine fuels used near
North America are hindering coastal shipping, after Republi-
cans urged the agency to consider offering exemptions.
Continue reading>>
IMO meets to develop sulphur cap guidelines
An International Maritime Organisation (IMO) working group
is meeting this week to develop guidelines for implementing
the global 0.5pc sulphur cap from 1 January 2020.
Continue reading>>
China to expand ECAs, cap marine fuel sulphur
content
China is planning to implement stricter curbs on sulphur
content in marine fuels by the end of next year as part of a
fresh crackdown on air pollution.
Continue reading>>
Argus Sulphur Issue 18-28  |  Thursday 12 July 2018

Argus Methodology
Argus uses a precise and transparent methodology to assess
prices in all the markets it covers. The latest version of the

METHODOLOGY AND SPECIFICATIONS GUIDE

Argus Sulphur: Argus Sulphur Methodology can be found at:
Data & Downloads Available www.argusmedia.com/methodology. ARGUS SULPHUR
Contents:

For a hard copy, please email info@argusmedia.com, but

Methodology overview 2
Introduction 5
Publication frequency 5
General methodology 5
Assessing price ranges 5

Argus Sulphur also features downloadable market data please note that methodogies are updated frequently and for
Spot, contract and formula pricing 6
Terms 6
Lot and cargo sizes 6
Products and specifications 6
Price Guide – how prices are defined 7

published in spreadsheet format, available only on Argus Direct. the latest version, you should visit the internet site.

> Sulphur spot deals

> Sulphur deliveries to Indian ports LAST UPDATED: JANUARY 2017
The most up-to-date Argus Sulphur methodology is available on www.argusmedia.com

> Sulphur deliveries to Jorf Lasfar port www.argusmedia.com

> Sulphur shipments from Ust-Luga port

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