QatarEnergy raises June sulphur price 9% to $805/t FOB

State-owned QatarEnergy Marketing has raised its June sulphur price by $65/t to $805/t FOB Ras Laffan/Mesaieed, extending a rally in a key phosphate-fertilizer input as Strait of Hormuz disruption lengthens Middle East delivery times.

The 9% increase in the monthly Qatar Sulphur Price lifts the delivered cost to Chinese ports to roughly $959–975/t CFR, based on freight rates of $154–170/t for a 30,000–35,000 tonne shipment as of May 28, before additional insurance premiums, according to Argus.

The elevated delivered pricing has opened room for competing origins to climb. Vancouver FOB levels have risen above Middle East FOB to $990–1,100/t, Argus reported, as buyers weigh alternatives to Gulf-sourced product. A further drag on Middle East supply is the longer delivery time stemming from uncertain passage through the Strait of Hormuz since the onset of the US-Iran war.

Sulphur is a critical raw material for phosphate fertilizer production via sulphuric acid, so sustained price strength feeds directly into DAP and MAP manufacturing costs at a time when phosphate values are already at multi-year highs. India’s IPL recently scrapped a 593,500 tonne sulphur purchase tender after offers came in above prevailing market levels.

Direction from here will hinge on Hormuz transit conditions and whether Asian phosphate producers absorb the higher input costs or push back on Gulf offers.

Source: Argus Media