Viewpoint: NorthAm sulfur markets to firm into 1Q

Viewpoint: NorthAm sulfur markets to firm into 1Q

Houston, 30 December (Argus) — North American sulfur markets are primed to rise further in early 2022 on the back of strong global demand from phosphate producers and export restrictions in China.

Supply tightness is expected to continue to define the North American market, fueling additional increases to the Tampa quarterly molten assessment as US refineries return to pre-Covid-19 throughput levels.

US sulfur production through September fell by about 50,000t compared to 2020, according to the US Geological Survey, and a sweeter — or less sulfur rich — crude refining slate in 2021 crimped overall sulfur output because of the economic benefit to refiners. Sweet crudes produces less sulfur than heavier, sour blends and are generally refined to higher-value products, such as propane, butane and isobutane, and distillates like kerosine, diesel and fuel, and heating oil. Sweet crude sources are concentrated along the US Gulf coast, mostly from shale assets in the Permian and Eagle Ford basins, whereas sour slates refined in the US Gulf coast are sourced from Canada or offshore.