Kuwait’s KPC raises sulphur price $145 to record $950 a tonne

Kuwait’s state-owned Kuwait Petroleum Corp has set its July sulphur price at $950 a tonne fob Kuwait, up $145 from June’s $805, a record level that underscores how tightly the Gulf sulfur market remains squeezed by the Strait of Hormuz conflict.

The new Kuwait Sulphur Price is $460 a tonne above the previous record of $490 fob set in June 2022. Freight rates as of July 2 stood at $108-116 a tonne for a 30,000-35,000 tonne shipment to Chinese ports, implying a delivered cost of $1,058-1,066 a tonne cfr before insurance premiums tied to the conflict.

The increase mirrors moves by other Gulf sulphur sellers. Abu Dhabi’s Adnoc raised its July official selling price for the Indian subcontinent by $140 to $1,000 a tonne fob Ruwais, also a record, while QatarEnergy lifted its July price by $85 to $890 a tonne fob Ras Laffan and Mesaieed.

The persistently high prices reflect a market still short of material despite a partial recovery in Hormuz vessel traffic in June, when more than 800,000 tonnes of previously loaded Middle East sulphur crossed the strait, mostly under earlier contracts. Spot availability remains limited to just two or three Middle East cargoes in trader hands. Phosphate producers reliant on Gulf sulphur, including Mosaic, have already curtailed output as feedstock costs climb.

Source: Argus Media