Suddenly it’s a good time to be a sulphur producer again. Sulphur prices started 2020 at a low point of $40/t, a level not seen for a decade or more. However, after a slight recovery when the pandemic hit and refineries began reducing production, since August the market trend has been rapidly upwards, now approaching levels of $200/t that have not been seen for a couple of years.
The profound demand shock caused by Covid-related lockdowns has had a major impact upon the refining industry. Run rates have been at low levels in North America and Europe, and a new wave of rationalisation is under way, at the same time that capacity continues to grow in Asia. Will this spur diversification into petrochemicals and low carbon options for Atlantic basin refiners?
Sour gas processing presents a number of unique challenges, especially at high levels of hydrogen sulphide and carbon dioxide content.
Demand for nickel sulphate is expected to rise rapidly this decade to feed increased battery production for electric vehicles. At the same time, diminishing sources of high grade nickel ores are leading to a renewed focus on high pressure acid leaching (HPAL) of laterite ores, with a significant impact on sulphur and sulphuric acid demand.
Restrictions and lockdowns across the globe have significantly reduced oil demand, impacting refinery run rates. This has aided in reducing sulphur liquidity, supporting the short term view.
Meena Chauhan, Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.
Market Insight courtesy of Argus Media
Despite the unprecedented economic woes inflicted by the Covid-19 pandemic, the global MOP industry still managed to endure in 2020, says Andy Hemphill , senior editor for potash at ICIS Fertilizers, thanks to its ‘essential’ status.
No one in this industry should ever need a reminder that commodity markets are cyclical. The corollary of that is – every once in a while – markets can, and will, abruptly change direction.
Natural gas pricing remains the dominant component of ammonia production costs. The fall in global oil and gas prices due to the Covid outbreak and the continued growth in the LNG market is continuing to break the hold of oil indexation on gas pricing. Meanwhile, reform of gas markets continues, in places as diverse as Brazil, China and India.