Argus FMB Sulphur · north, where high, stable inventory is keeping demand for new volumes. ......

Copyright © 2012 Argus Media Ltd

Argus FMB SulphurFormerly FMB Weekly Sulphur Report

Issue 12-34 | Thursday 23 August 2012

PRICE GUIDEMARKET SUMMARY

Market prices holding ...China key to future prices

The sulphur market is relatively steady with recent spot prices displaying a modest improvement. New import cargoes have been reported in China in the $206-208/t cfr for September arrival in the south, but prices have still not been accepted above $210/t cfr by end-users. Low stocks in China at 1.27 million t and anticipation of higher demand for the upcoming domestic season are helping prices to tick up higher in China, and may encourage speculator demand, but after two weeks of improvement the market in China this week has been calmer.

Prices accepted in China at $206-208/t cfr are of course still well below the cfr prices required to break even on the basis of Q3 Middle East fob contract prices and indeed recent higher-priced fob spot sales made in Taiwan and Kuwait. In Saudi Arabia it is known that some traders have opted not to lift Q3 cargoes and pay a penalty rather than incur trading losses based on $200/t fob costs. Offers of additional tonnage to signed up contract holders have been made discounted to the mid-$180s/t fob.

In South Africa price agreements between Foskor and two Canadian suppliers for 2H were heard settled at various prices ranging between mid-$180s/t fob to close to $200/t fob Vancouver. In India tenders held by FACT and PPL were

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Argus FMB Sulphur

FMB sulphur & sulphuric acid price guide ($/t)

Contract Spot

Sulphur dry bulk

Fob Vancouver 2H 2012 185-200 175-185

Fob Vancouver Q3-2012 185-200 175-185

Fob Middle East* 2H 2012 175-180 175-180

Fob Middle East* Q3-2012 185-203 175-180

Fob Adnoc posted Aug 2012 190

Fob Iran 170-175

Fob Black Sea (lump-gran) Q3-2012 170-185 145-175

Fob US Gulf Q3-2012 180-185

Fob Caribbean (under 15 k) 160-170

Cfr Brazil Q3-2012 205-215 210-215

Cfr Med (under 10 k) 2H 2012** 100-130 125-140

Cfr N Africa (all sizes) 2H 2012 210 170-190

Cfr N Africa (all sizes) Q3-2012 185-210 170-190

Cfr India 203-210

Cfr China Q3-2012 200-210 200-210

*excluding Iran ** retroactive to 26.07.2012

Sulphur - molten

Cfr Tampa/C Fla (l.t.) Q3-2012 170

Cfr Benelux (loc refs) Q3-2012 208-220

Cpt NW Europe Q3-2012 240-260

Sulphuric acid

Cfr NW Eur (smelters), €/t 2H 2012 70-80

Cfr NW Eur (smelters), €/t Q3-2012 70-80

Cfr Brazil 100-105

Cpt = ‘carriage paid to’ for sulphur delivered by Roadtankcar

*** indicative price

020406080

100120140160180200220240260

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 July

fob Vancouver fob Middle East cfr China

Slow, small rise in prices in China with buyers accepting $206-208/t cfr in the south, still equating well below recent fob spot purchases in AG and Taiwan.

SULPHUR SPOT PRICE COMPARISON ($/PT FOB BULK)

Copyright © 2012 Argus Media Ltd of 11

Argus FMB Sulphur Issue 12-34 | Thursday 23 August 2012

scrapped, with FACT re-issuing a new one. Reliance/India closed a new export tender this week for Sept loading and TCO/Kazakhstan also floated a new export tender closing end-August for Sept loading.

This week’s highlights

▪ Market steady with prices ticking a little higher

▪ Chinese deals done this week in range $205-210/t cfr in

the south

▪ China port stocks still at 1.275 million t

▪ Recent spot fob sales ex-Taiwan and Kuwait equating

well below current cfr China market

▪ China port stocks still at 1.275 million t, prompting

expectations of stronger buying for domestic season

▪ New Reliance export tender for mid-September loading

▪ PPL and FACT scrap tenders, FACT reissues new one

▪ IGCC/Iran delays sale of granular cargo to build up supply

▪ New TCO/Kazakh tender for September loading ex-

Illychevsk

▪ Foskor agreements for Canadian 2H supplies limited to

two suppliers - reports of prices concluded vary between $185-200/t fob Vancouver

▪ Oxbow shipping two US cargoes to Brazilian buyers

Copebras, Galvani and Elekeiroz

▪ Total close sulphur unit at Port Arthur, Texas

▪ Primary Resources ships North American cargoes to

customers in Peru and Colombia

ASIA

ChinaPrice levels in the China market have improved a little of late, with most players quoting $205-210/t cfr as an achievable target for the sale of new import tonnages for September arrival into southern and River ports such as Fangcheng and Nantong. However prices are lower in the north, where high, stable inventory is keeping demand for new volumes.

There have been new sales confirmed this week by traders to the south at $207-210/t cfr, including a sale by Oxbow at $208/t cfr. However with the south being covered in, there was a lack of confidence from traders servicing the market that demand from phosphate fertilizers and industrial chemical sectors would be sufficient to push prices further. Traders holding Middle East, Indian and Taiwan tonnage were looking to push up prices in the next round of sales into the $210-215/t cfr range. Recent spot sales made in

$175-208/t fob Vancouver

$170/lt cfr Tampa (molten)

$210-215/t cfr Santos

$208-220/t cfr Antwerp (molten)

$180-210/t cfr Jorf Lasfar

$185-203/t fob Jubail, Ruwais

$203-210 cfrParadeep, Chennai

$200-206/t cfr Fangcheng, Nantong

$170-185/t fob Illychevsk,

Kavkaz

SNAPSHOT - WORLD SULPHUR GRAN PRICES/NETBACKS



the international market are still not reflecting the current market sentiment in China.

Sulphur suppliers believe low stocks - currently at 2.75 million t - and new demand for the approaching domestic season - will help support firmer prices in September. Some analysts believe even if this is the case end-users are unlikely to accept the $220s/t cfr required for traders to break even on Q3 AG contracts. Additionally, demand for sulphur from the non-fertilizer sectors in China is not strong, with some TiO2 plants reported closed, and this will not help the market going forward.

On August 17 Sinopec increased solid sulphur prices at various refineries by RMB 20-40/t.

▪ In Nantong (river), stocks were reported at 360,000t. In

July only 33,000t of Middle East granular, and a 30,000 t

Kazakh crushed cargo arrived in Nantong. In August three cargoes were expected from Iran (30,000t crushed lumps), Kazakhstan (30,000t crushed lumps) and Qatar (30,000t granular). Prices on offer around RMB 1580-1600/t ex warehouse.

▪ In Zhenjiang (river), stock levels were down from

last week by 10,000t to 160,000t. Following an early August 30,000t cargo from Qatar, only one new shipment is expected this month comprising a cargo of Russian crushed lumps. Prices on offer around RMB 1580-1600/t ex warehouse.

▪ In Qingdao (north), stocks were stable at 205,000t.

No cargoes were lined up to arrive at the port. Prices on offer at RMB 1550-1570/t ex warehouse for crushed lump product.

FMB Spot Sales Selection – 23 August 2012

Product Origin Seller Buyer Destn ‘000t $/t bulk Shipmt

Sulphur AG Traders End-users South Chinaa various 206-210/t cfrCalifornia HJ Baker Fertinal Mexico 50 mid-170s fob OctCanada Oxbow Fertinal Mexico 50 mid-170s fob Sept

Venezuela Pequiven Fertinal Mexico liq 20 180 cfr SeptKuwait KPC Marubeni China 25 193 fob Sept

Oman ETA RCF India 10 209.97 cfr AugIran IGCC Traders China lumps 55 164 fob AugTaiwan Formosa China Oil China- 15 198 fob Aug/Sept

AG Swiss JPMC Jordan 120 202 cfr Aug/SeptRed Sea, Saudi Aramco JPMC Jordan 26 190-192 cfr AugUSG Oxbow Galvani, Elekeiroz Brazil 21 210-213 cfr Aug

Med Trader Skorpion Namibia 10 220 cfr SeptIndia Reliance Midgulf China 33 low-180s fob AugQatar Quantum - China 30 198 cfr Aug

Qatar Tasweeq Trammo - 30 178-180 fob AugGermany Exxon solvadis Senegal 25 mid-170s/fob Aug

Poland Ciech solvadis Senegal 25 mid-170s fob AugLibya NOC Agro Resources Morocco 15 130 fobTaiwan Formosa Marubeni - 15 low-180s fob Aug

UAE Inland Overseas IFFCO India 30 202.50 cfr AugIndia Reliance Swiss - 35 182-183 fob AugIndia Transfert CIL India 25 225/t cfr Aug

Iran IGCC Swiss China 30 175 fob AugKuwait/UAE Swiss FACT India 25 221.60 cfr July

Sulphuric Acid Europe Aurubis Timac Brazil 15 low-100s cfr Sept

Europe Trader Timac Brazil 12-15 mid-90s cfr Aug

Europe n.a. Mosaic Brazil 10-15 low-mid 90s cfr July

Korea Korea Zinc IFFCO India 15-20 62 cfr June

Europe Roullier n.a. Brazil 12-15 mid-90s cfr June

n.a. n.a. n.a. Chile 20 mid-110s cfr June/July



▪ In Fangcheng (south), stocks were down a further 15,000

t to 285,000t. During August a total of three shipments were expected into the port totalling 110,000t from Taiwan, Middle East and possibly Canada. Latest purchases by YUC were reported at strong levels as high as RMB 1650-1680/t, as reported last week. However there were no indications that this price range would continue to be pushed higher.

IndiaBearing in mind the low level of prices seen in China, India’s sulphur buyers have been unhappy with recent trader price submissions. This resulted in two tenders being scrapped this week by FACT and PPL. FACT has reissued a new tender. Meanwhile traders submitted bids on a new export cargo offered out by Reliance for September loading.

FACT/Cochin scrapped its sulphur tender of 10 August and issued a new one for 25,000t closing 27 August for arrival in Cochin 17-20 September or earlier. Bids to remain valid until 3 September. Only two offers were submitted in the earlier tender by Oxbow and Swiss Singapore.

PPL/Paradeep closed a new tender for 35,000t on 16 August for arrival 15-18 September. Offers were received from 4-5 traders at prices in the $216-218/t cfr range. PPL was looking for numbers closer to the low-$200s/t cfr and no business was concluded.

Swiss Singapore has currently two shipments arriving in Paradeep for PPL and IFFCO to cover earlier sales:

- MV Omera 1 arrived in Paradeep on 21 August for PPL with 38,000t shipped from Assaluyeh, Iran.

- MV Magnum Energy was due to arrive in Paradeep on 25 August with 38,500t of UAE sulphur for IFFCO (covering an old sale at $202.50/t cfr).

On 23 August Reliance closed a new export tender for 27,000t of granular sulphur for 15-21 September loading at Sikka. Bids to be valid until 24 August. In the previous tender for 33kt for loading 26-28 August, an award was made to Midgulf in the low-$180s/t fob Sikka, expected to be placed in China.

Recent spot sales/purchases in India for August:

▪ RCF bought 10,000 t from ETA ex-Oman at $209.97/t cfr, August delivery

▪ Reliance sold a 33,000t export cargo to Midgulf in the

low-$180s/t fob for 26-28 August loading for China.

▪ IFFCO bought 30,000t ex-Ruwais for mid-August delivery

from Inland Overseas at $202.50/t cfr Paradeep.

▪ Reliance - 35,000t export cargo to Swiss Singapore at

$184/t fob Sikka for 1-7 August loading for China.

Paradeep Phosphates Ltd has recently updated the industry on its plans for the future, indicating it is investing around

Main Chinese Port Inventories (’000 t)

21 August 22 May

Qingdao 205 275

Zhenjiang 160 300

Zhanjiang 110 220

Fangcheng 285 500

Nantong 360 600

Tianjin - 10

Beihai 130 100

Others 25 45

Total 1,275 2,050

Sulphur Arrivals Selection Indian Ports July/Aug 2012

Supplier/Buyer Origin Vessel KT Arrival Port

Swiss/IFFCO Bahrain/Saudi Joanna A 36 30 July Paradeep

Mitsui/IFFCO Qatar Tuna 7 31 2 August Paradeep

Swiss/FACT Kuwait/UAE Chalphorn Naree 25 28 July Cochin

Transfert/CIL Kuwait Island Green 9 10 August Chennai

Swiss/PPL Iran Omera 1 38 21 August Paradeep

Tranfsert/CIL Kuwait Island Green 15 13 August Vizag

Swiss/IFFCO UAE Magnum Energy 38,5 25 August Paradeep



Rs 600 crore on new projects to raise capacity. The plans include the construction of a new 2000tpd sulphur-based sulphuric acid plant, and phosphoric acid/DAP debottlenecking projects and are expected to be completed over the next three years.

MIDDLE EAST

It is understood contract holders were being offered additional tonnage for Q3 shipment in the mid-$180s/t fob. Last spot sales made remain those reported last week - Kuwait at $193/t fob for granular and Iran at $164/t fob for crushed lumps. Some traders holding contract allocations have opted not to lift this quarter, opting to pay the penalty for non-lifting rather than trade from a base cost of $200/t fob.

UAENothing new to report in UAE. Recent export activity in Ruwais has been for India, Senegal and Morocco, with little export activity evident to the China market.

On 14 August Inland Overseas/Swiss Singapore shipped 38,500t on the MV Magnum Energy for Paradeep/India to cover its earlier sale made to IFFCO at $202.50/t cfr.

On 7 August ADNOC completed loading 50,000t on the ADNATCO vessel MV Al Xisat 2 for shipment to contract customer OCP/Morocco. ADNOC’s Q3 supply contract in Morocco was settled at around $210/t cfr.

On 6 August Transfert shipped out 30,000t from Ruwais on the MV Friendly Seas for delivery to contract customer ICS/Senegal.

QatarKoch is in the freight market to load 30,000t in Ras Laffan/Messaieed 5-9 September for shipment to Fangcheng.

The last three liftings in Ras Laffan have been to non-China destinations:

A new shipment was arranged last week for emerging market Australia. Trammo loaded 31,000t on the MV Jupiter Charm for shipment to nickel miner FQM/Ravensthorpe in western Australia.

Prior to this Swiss Singapore loaded 29,000t on the MV CS Caprice for shipment to Aqaba, Jordan to cover the first of four shipments sold to JPMC in the low-$200s/t cfr. The ship sailed on 8 August.

On 2 August the G. Bourgogne sailed on 2 August with 33,000t of Tasweeq sulphur for direct contract customer OCP/Morocco.

Saudi Arabia

It is understood certain contract holders are not lifting their allocation Q3 tonnes and instead will pay the penalties for non lifting.

Contract holders who have signed up are understood being offered additional sweetener tonnage at lower prices around the mid-$180s/t fob.

Of late, tonnage loaded in Jubail has been overwhelmingly on the account of China Oil:

165

190

210

225

240 240

225 215 220 220 220

205

190 180

195 200 210 215

205

190

0

20

40

60

80

100

120

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160

180

200

220

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Jan-11

F M A M J J A S O N D Jan-12

F M A M J J A

2011/2012

ADNOC OFFICIAL SELLING PRICE ($/PT FOB RUWAIS)

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In Jubail: -

On 20 August China Oil shipped 44,000t on the MV Spar Ursa for China.

On 14 August China Oil’s MV Titan sailed for China with 44,000t.

OCP/Morocco’s MV Pos Freedom sailed with 38,000t on 11 August under its Q3 contract with Aramco Trading.

China Oil’s MV Great Clam sailed for China on 4 August with 43,700t.

On 29 July China Oil’s MV New Venture sailed for China with 44,000t.

KuwaitOn 16 August the MV Brave was scheduled to sail from Shuaiba with 23,000t heading for North Africa, believed Tunisia. KPC closed its 2H contract with GCT/Tunisia earlier this month at the same price as in Morocco at $210/t cfr. The tonnage comprises 2 x 25,000t. With higher freight costs for Shuaiba - Jorf Lasfar put at $35/t this gives a netback closer to $175/t fob Shuaiba. Last week Swiss Singapore loaded 16,500t in Shuaiba on the MV Konstantinos. The vessel sailed on 8 August for Bahrain to load the balance of 11,000t prior to sailing with a full cargo on 12 August. Destination was believed Paradeep but the vessel has now shown in the port’s arrivals line up.

Last business done in Kuwait was its spot sale reported last week to Marubeni comprising 25,000t at $193/t fob for mid September loading in Shuaiba. Most trader offers were heard to have bid at much lower levels in the $180s/t fob Shuaiba.

IranDue to tightness of granular supply IGCC has decided to delay the sale of its next cargo of granular sulphur for a week or two to build up inventory. The producer had tendered on 12 August tender for 30,000t granular for loading 1-10 September in Assaluyeh, attracting offers in the mid-$180s/t fob. The tonnes will be offered again either by new tender or sold by private negotiation.

Swiss Singapore loaded the last granular cargo from Assaluyeh on 7 August on the MV Omera 1 comprising 38,000t for Paradeep, India.

As reported last week IGCC awarded two cargoes totalling around 50-55.000t of crushed lump sulphur for 2H August loading in Bandar Abbas at $164/t fob. This week the first of

these cargoes of around 22,000t is being loaded in Bandar Abbas on the MV Hong Wei for shipment to China.

Prior to this cargo, on 9 August 22,000t of crushed lumps was shipped to China on the MV Team Worth. Before this SIPCO shipped 31,500t of crushed lumps sulphur to Nantong on the MV Hong Master.

LibyaA trader is checking out freight rates to load 15-18,000t sul-phur in Mellitah for shipment to Haldia, India 22-30 August.

Lebanon

Midgulf is due to load 20,000t of Russian granular this weekend for contract customer LCC/Lebanon. The Q3 contract between Midgulf and LCC was agreed at a roll-over price at $205/t cfr Selaata.

Jordan

On 8 August Swiss Singapore shipped 29,100t from Ras Laffan, Qatar to Aqaba. This represented the first cargo of four totalling 120,000t sold to JPMC by Swiss at close to $202/t cfr for August/September/early October shipment.

Aramco Trading’s MV Rising Eagle arrived in Aqaba on 16 August with 26,000t shipped from Yanbu/Rabigh in the Red Sea. The tonnage was sold in the $190-192/t cfr range.

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MED/AFRICA

MoroccoLast week solvadis arranged the shipment of 30,000t of sulphur from Kafkaz to OCP/Morocco. August shipments resumed following the agreement reached between GPE/solvadis OCP/Morocco for Q3 deliveries. Prices were agreed in the low-mid $200s/t cfr for granular supplies, with crushed lump supplies around the low-$190s/t cfr. The contract calls for 200,000tpm to be shipped to Morocco.

OCP is also receiving 37,000t of Saudi sulphur under its Aramco contract. The MV Pos Freedom sailed from Jubail to Morocco on 11 August.

South Africa

The terms of the 2H price settlement between Canadian suppliers and Foskor are not clear. It is known that Prism has not agreed terms for 2H. With Shell also not supplying into this market this year the only agreements reached were with main supplier Petrosul, with higher volumes, and to a lesser extent Husky, with unchanged volumes. There are various reports on the settlements reached both below and above $200/t fob Vancouver but they could not be verified. One source indicates the some of the fob levels agreed are no higher than netbacks from the current China market in the mid-$180s/t fob, while another source suggests prices closer to $200/t fob Vancouver. Based on contrasting information some of the negotiations were thought to be more complex than past settlements. Freight under Foskor’s coa is estimated at close to $30/t.

Last two shipments which arrived in Richards Bay from the Middle East:

MV Vashod 2, 46,000t sulphur, 11-15 Aug (Transammonia, ex-Jubail, Saudi)

MV Mallika Naree, 27,000t sulphur, 19-22 Aug (Swiss Singapore, ex-Ruwais, UAE)

EAST EUROPE

RussiaLast week solvadis is believed to have shipped 30,000t from Kafkaz to baseload contact customer OCP/Morocco. The 200,000tpm Russia-Morocco trade resumed in mid-August after price agreement was finally reached for Q3 shipments, in the low-mid $200s/t cfr for granular supplies and crushed lump supplies in the low-$190s/t cfr.

All other Q3 contracts are now agreed in other markets including Tunisia, Brazil, Israel, Senegal and Lebanon all close to rollover in the range $200-215/t cfr for granular supplies.

Midgulf is due to load 20,000t of Russian granular this coming weekend in Kafkaz for contract customer LCC/Lebanon. The Q3 contract between Midgulf and LCC was agreed at a roll-over price at $205/t cfr Selaata.

Austrofin has now fixed the MV Romandie to load 30,000t in Ust Luga later this month for shipment to Vale/ Brazil.

Kazakhstan

TCO has issued a new export tender for 30,000t of granular loading 8-12 September in Illychevsk. Offers are required by Friday by 31 August.

Trammo is currently arranging the shipment of 38,500t of TCO granular sulphur to Brazil loading in Ust Luga on the MV Platon for contract customer Vale. The cargo is due to arrive in Santos on 13 September.

Oxbow is arranging the shipment of a contract TCO cargo to OCP/Morocco from Ust Luga for loading 24-27 August. Vessels are being checked to load 30-31,000t or 17-18,000t

Under its usual contractual arrangement Trammo is scheduled load 40,000t TCO crushed lumps in Illychevsk loading 28-31 August for shipment to south China.

NORTH AMERICA

Canada

The terms of the 2H price settlement between Canadian suppliers and Foskor are not clear. It is known that Prism has not agreed terms for 2H. With Shell also not supplying into this market this year the only agreements reached were with main supplier Petrosul, with higher volumes, and to a lesser extent Husky, with unchanged volumes. There are various reports on the settlements reached both below and above $200/t fob Vancouver but they could not be verified. One source indicates the fob levels agreed are in fact no higher than netbacks currently available from the current China market in the mid-$180s/t fob, while another source firmly indicates prices closer to $200/t fob Vancouver. Based on contrasting information some of the negotiations were thought to be more complex than past settlements. Freight under Foskor’s coa is estimated at close to $30/t.

Last sale made ex-Vancouver was Oxbow’s sale of 50,000 t of Canadian sulphur, reported already last week, to Ferti-nal/Mexico for early September loading in Vancouver around the mid-$170s/t fob. Freight to Lazaro Cardenas is put at around $15-16/t.



USAOxbow is currently shipping two US sulphur cargoes to Brazilian customers ex-US Gulf terminals. The MV Hemus is due to arrive in Santos tomorrow with 21,000 t for Galvani and Elekeiroz, and the MV Inventana will arrive next week with 36,000t for Copebras. All the tonnage was sold in the range $210-215/t cfr.

Primary Resources is loading the MV FM Prosperity in Long Beach, California this week to deliver 7200 metric tons to Callao, Peru for two receivers.

Koch is checking out freight rates on 12,000t for loading 1-5 September out of Beaumont and Galveston for shipment to Cotonou, Benin.

Trammo is checking freight rates to load 8-10,000t of sulphur in Faustina for prompt shipment to San Lorenzo. Recently Axed floated an enquiry for 10,000t for September arrival, and rejected trader offers ex-Med in the $220s /t cfr. Last major transaction in the USA was HJ Baker’s sale reported last week of 50,000t to Fertinal/Mexico in the mid-$170s/t fob basis two-port load early October in Stockton and Longbeach, California. Freight is estimated at $15-16/t.

On 19 August Total shut down its 210,000tpa capacity sulphur recovery unit at its refinery in Port Arthur, Texas. An equipment malfunction led to the shut down and caused excess emissions reported to state environmental regulators, according to a filing released this week.

With respect to domestic demand, expectation is building that the worst U.S. drought in a half century will keep grain prices high into next spring’s North American seeding period and beyond. That bodes well for sales of fertilizer to farmers eager to tap high grain prices. Overall drought conditions eased in the contiguous US over the last week, but worsened in key corn producing states. Extreme drought conditions intensified in the High Plains region, which includes Kansas, Nebraska and Iowa, offering little respite for the US corn crop. An estimated 77.28% of the contiguous US was in some form of drought last week, down a sliver from the 77.68% reported the previous week. An estimated 23.01% of the country was in the worst stages of drought, slightly lower from 23.68% seen the week prior. The worst conditions remained centered over the corn-producing US midcontinent. Nearly the entire state of Nebraska – 98.3% – suffered the most severe stages of drought. Kansas increased slightly to 96.43% of the state in at least extreme drought. Iowa reported 67.54% of the state was in at least extreme drought.

SOUTH/CENTRAL AMERICA

Brazil

Oxbow is currently shipping two US sulphur cargoes to Brazilian customers ex-US Gulf terminals. The MV Hemus is due to arrive in Santos tomorrow with 21,000 t for Galvani and Elekeiroz, and the MV Inventana will arrive next week with 36,000t for Copebras. All the tonnage was sold in the range $210-215/t cfr.

Major delays in discharging sulphur cargoes continue at the two terminals in Santos.

Sulphur arrivals into Santos:

Austrofin’s MV Solin is scheduled to arrive on 16 August with 35,000t of Russian granular from Kafkaz for Vale.

This will be followed by Trammo’s MV Almi, arriving on 18 August with 35,000t of TCO granular from Ust Luga for Vale.

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On 6 September Austrofin’s Romandie is due to arrive from Ust Luga with 30,000t of Russia granular for Vale.

On 21 August Oxbow’s MV Hemus is scheduled to arrive with 21,000t ex-US Gulf for Galvani and Elekeiroz.

On 13 September Trammo’s MV Platon (replacing MV Temptation) is due to arrive in Santos from Ust Luga with 38,500t of Kazakh granular for Vale.

ArgentinaTrammo is checking freight rates to load 8-10,000t of sulphur in Faustina for prompt shipment to San Lorenzo. Recently Axed floated an enquiry for 10,000t for September arrival, and rejected trader offers ex-Med in the $220s /t cfr.

PeruPrimary Resources is loading the MV FM Prosperity in Long Beach, California this week to deliver 7,200t to Callao, Peru for two receivers.

ColombiaPrimary Resources discharged 6,600t from the MV Nomadic Bergen this week at Barranquilla for their traditional customer. The vessel was loaded in Come By Chance, Canada where Primary is loading the MV UBC Moin this week for the same destination and receiver.

SULPHURIC ACIDFirming market on limited spot business

Market SummaryThe sulphuric acid traders mostly agree that the market continues to be flat overall. It tends to be quiet during the holiday season in the northern hemisphere around this time of year.

However the outlook is less clear. Indeed some believe that there may be a downturn once September begins. It might have started already up but for the demand by Gresik in Indonesia. Brazil and Chile are quiet for the moment but Brazil at least is expected to come back with some fresh demand in a couple of weeks’ time.

BrazilAs noted in the markets summary above, Braziliandemand is quiet at the moment but at least two more rounds of purchasing are expected before the end ofthe year. The first is liable to take place in a couple of weeks’ time when the likes of Timac, Mosaic, Yarrawill be looking for cargoes to arrive around the end of October, which will mean loading in Europe in early October.

In late news there is a preliminary report that a trader has booked a part cargo of 6-9,000t with an undisclosed buyer at around $110/t cfr. More news will hopefully be available next week.

ChileDemand in this market for imports is very, very quiet. Nobody expected Noracid to be working at full capacity by now and therefore domestic demand is being satisfied for the moment. If any demand were to emerge, price ideas are now said by some to be in the range $110-120/t cfr, depending on how desperate the buyer was. Others believe $100-110/ cfr is more realistic.

Interacid has fixed 20,000t to load early-September in the Far East under regular contract commitments.

Thoughts are turning towards what Codelco’s ideas will be for acid prices under contract next year. Meetings during the TFI Conference in September will likely be the start of discussions. However, these days Codelco does not make a early decision.

Sulphur Vessel Arrivals Santos July/August 2012

Vessel/Vol `000t Supplier Origin Receiver ETA ETC

Vyritsa/5,5 Transammonia Ust Luga, Baltic Vale 19 July 22 Aug

Vyritsa/28 Transammonia Ust Luga, Baltic Vale 19 July 02 Sep

Solin/35 Austrofin Kavkaz, B Sea Vale 19 Aug 26 Aug

Almi/35 Transammonia Ust Luga, Baltic Vale 18 Aug 10 Sep

Romandie/30 Austrofin Ust Luga, Baltic Vale 06 Sep 13 Sep

Platon/38,5 Transammonia Ust Luga, Baltic Vale 13 Sep 17 Sep

UBC Longkou/38,5 Austrofin Kafkaz, B Sea Vale 18 Sep 20 Sep

Oxbow/36 Oxbow US Gulf Copebras 27 Aug 29 Sep

Hemus/21 Oxbow D’naldsonville, USG Galvani, Elekeiroz 22 Aug 01 Oct

Temptation/38,5 Transammonia Ust Luga, Baltic Vale 13 Sep 18 Sep



ArgentinaIt is believed that Trammo has fixed the 18,000t enquiry reported last week. The cargo is rumoured to ship out of Rönnskär, Sweden, in the first half of September.

JapanElectricity is limited in Japan (with nuclear power not popular following the Fukushima incident last March), and hence there are many smelters in Japan that will go through extended maintenance in the summer. This is the reason why Japanese smelter acid supply is going to be restricted. However, the impact will be partly alleviated, as domestic demand will also be reduced by the electricity cutbacks.

Export price indications for spot business are said to be around $40/ fob according to one trader.

ChinaThe domestic sulphuric acid market remains slow, with some small/medium sized sulphur burners reportedly shut down on the back of weak demand. Acid offers from sulphur burners are indicated in the range RMB350-400/t ex-factory, whereas those for smelter acid are offered in a lower range of RMB300-350/t ex-factory.

Phosphates producers in China are hoping for sulphuric acid prices to stay low, citing the costs of phosphate rock being too high.

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IndiaSome exporters of acid have been asking for bids to take product in September. At the time of writing, there has been little interest from traders.

The latest list of vessels arriving at Indian ports during August is in the accompanying table.

PhilippinesPASAR restarted production in July following a fire at the plant in January, according to Glencore’s Interim Report. Copper cathode production in the first half of 2012 was hence significantly lower than in the same period in 2011.

IndonesiaThere have been questions raised over whether PT Smelting’s plant is actually having a maintenance

Sulphuric Acid Vessels During August 2012

Supplier/Buyer Vessel Qty Load Port Date Discharge

Port

Interacid Trading/CIL

Fair Chem Brono

8,997Onsan Koria

01-Aug Kakinada

Nikko Copper/CIL

Fair Chem Brono

9,900 Onsan Koria 02-Aug Vizag

Sterlite/CILStanley Park

19,000 Tuticorin 03-Aug Vizag

Mitsui/CILStolt Kikyo

4,590 Saganoseki 06-Aug Kakinada

Mitsubishi/ PPL

Southern Bull

13,487Onahama Japan

07-Aug Paradip

Mitsui/CILStolt Kikyo

7,000 Saganoseki 09-Aug Vizag

Quantum/IFFCO

Sichem Pace

19,099 Korea 10-Aug Paradip

Interacid/ IFFCO

Hellen 19,141 Kwinana 11-Aug Paradip

Swiss/ Hindalco

Bum Chin 19,000 Dahej 12-Aug Indonesia


4,000 Tuticorin 13-Aug Kakinada


8,000 Tuticorin 15-Aug Vizag

Quantum/ IFFCO

Sichem Pace

18,000 Korea 15-Aug Paradip

Misubhishi/ IFFCO

Southern Wallay

12,000 Japan 20-Aug Paradip

Mitsui/CILStolt Rindo

10,667 Saganoseki 24-Aug Vizag

Mitsubishi/ PPL

Southern Hawk

13,589 Japan 28-Aug Paradip

TOTAL 186,470

Fertilizer


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turnaround. In which case why would Petrokemia Gresik need the 80,000t it requested recently? However, it seems that PT Smelting has a pipeline that supplies acid to Gresik and it is now believed that its maintenance is the cause of Gresik coming back out for spot tonnes.

There is still speculation that Petrokemia Gresik has bought the four cargoes of 20,000t each from Japan/Korea but this has yet to be confirmed. Gresik was countering bidders with $65/t cfr but may not have booked as yet.

AustraliaQuantum has fixed 10,000 tons to load out of Korea at the end of September for shipment to East Coast Australia.

COMPANY NEWS

AustraliaBHP Billiton issued its results for the year ended 30 June 2012. Weakness in commodity markets and industry wide cost pressure resulted in a 15 per cent decline in Underlying EBIT and a 21 per cent fall in Attributable profit (excluding exceptional items) in the 2012 financial year. Net operating cash flow of US$24.4 billion declined by 19 per cent while Underlying return on capital was 23 per cent. The value of the Company’s diversified strategy was reflected in the Group’s Underlying EBIT margin, which remained at a robust 39 per cent.

As a result of the current economic climate, BHP announced cutbacks or deferrals in a number of projects, including the

$30bn Olympic Dam expansion project for copper in South Australia.

SwitzerlandOn 21 August, Glencore released its interim results for the six months ended 30 June. Its financial highlights are as follows:• Adjusted EBITDA for the first half of 2012 was $3.2bn, down 17% from the first half of 2011, but up 22% on second half 2011.• Industrial Adjusted EBITDA was down 21% to $2.05bn in the first half of 2012, because of lower average metals’ prices that impacted its consolidated operations. • The company saw average prices for zinc and copper down by 15% and 14% compared with 2011 levels respectively, in response to the weak financial markets. Production across the sector was below expectations because of cost inflation, project delays and other supply-side constraints. • Strong and capital efficient volume growth supported by low risk brownfield expansions. Overall, growth pipeline in its industrial operations remains on time and on budget. Conservatively in excess of 50% copper equivalent volume growth to 2014.• Strategy of value-driven merger and acquisitions has continued, with Xstrata and Viterra transactions in progress. On 7 February, Glencore and Xstrata announced that they had reached an agreement on the terms of a recommended all-share merger to create a • $90bn natural resources group. The Merger is subject to shareholder, anti-trust and regulatory approvals.

4th Argus Americas Petroleum Coke Summit 2012

19-21 September 2012Westin Houston Memorial City, Houston, TX, USA

Petroleum Coke Markets Are Changing. With crude slates shifting and wild swings in competing fuels prices and availability, petroleum coke markets are as exciting as ever before! Now in its 4th year, the Argus Americas Petroleum Coke Summit brings together industry leaders and market participants to examine the causes and consequences of massive volatility in global petcoke markets.

Gain valuable insight into the major issues driving petroleum coke markets, including:

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What delegates are saying:

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Don’t miss this opportunity to exchange information and network with customers and suppliers from across the petroleum coke supply chain.

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Charlie Randall, Randall-Coke & Carbon Consultant

Narinder Singh, CoalPulse

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… and others!

Argus Americas Petroleum Coke Summit 2012

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