US Sulphur Prices Stabilize Amid Supply Chain Recovery

Texas, USA: The US Sulphur market remains bullish, though it showed some stability this week, largely due to improvements in the supply chain from Canada to the US. Furthermore, the overall bullish market conditions can be attributed to the disruptions caused by Hurricane Francine which are affecting Sulphur production and pushing prices upward.

During the week ending on September 13th, the US Sulphur market remained stable at the higher level of USD 130/MT (CFR-Texas), reflecting bullish market sentiment. Although a decline in the feedstock Crude Oil prices is reducing production costs, Sulphur prices have maintained their stability at elevated levels. The bullish trend can be attributed to supply chain disruptions caused by Hurricane Francine. Additionally, confirmed trading activity was quiet this week, helping to stabilize Sulphur prices, though future business indicators point toward higher prices as global markets continue to receive near-term support.

Hurricane Francine made landfall in Louisiana as a Category 2 storm on September 11, according to the National Oceanic and Atmospheric Administration (NOAA). In preparation, officials and terminal operators at the Port of New Orleans (NOLA) began scaling back operations on September 10, with a full shutdown implemented during the storm's passing on September 11. The port remained closed through September 12 as terminal operators conducted damage assessments. While the direct impact of the storm on Sulphur consumption and production is still unclear, sources expect the effects to be evenly distributed. Some Sulphur producers reduced crude input loads ahead of the storm, and consuming plants lowered utilization rates as a precaution. The main operational threat remains power losses, with strong winds and flooding endangering power stations and lines. As of 12:30 pm ET on September 12, approximately 258,800 customers were without power, mostly in southeast Louisiana near New Orleans.

Additionally, the Sulphur market has remained stable as no new trades were confirmed this week, which helped to stabilize the rising prices. Rail service has mostly returned to normal following a short work stoppage that lasted about three weeks. Transit and deliveries of railed Sulphur and other commodities have resumed their regular schedules, although the possibility of another work stoppage at the Port of Vancouver still looms. The International Longshore and Warehouse Union (ILWU) and the British Columbian Maritime Employers Association (BCMEA) continue to negotiate a new labour agreement, as ILWU Local 514 workers retain the right to strike following a Canadian Industrial Relations Board (CIRB) hearing.

According to ChemAnalyst, the US Sulphur market is expected to maintain its bullish trend due to the impact of Hurricane Francine, which is likely to disrupt production. This disruption may lead to a price increase in the US Sulphur market in the near term.