Sulfur Price Increased Earlier Than Expected

By CnAgri2014-01-15 09:38:32 Print Domestic sulfur price kept increasing and the growth rate also rose. But orders declined in fertilizer manufacturers, with increasing sulfur price, some small and medium fertilizer manufactures will stop production. Excessive increase of sulfur price is no doubt the overdraft of the good expectation on later market.

Sulfur price from factory was raised to RMB1200/MT by major sulfur manufacturers in China, up 16.5% compared with the price of RMB1030/MT in early Dec.. It is understood that the imported price of bulk particle sulfur reached RMB1250/MT, which was only RMB1030/MT in early December 2013, the growth rate was 21.36%.

Reasons for sulfur price increase:
　　　
Firstly, international sulfur price increased. It is understood that the imported price of bulk particle sulfur from Mid-East has reached to CFR170/MT, equal to RMB1300/MT, higher than current spot price in ports. It is busy for international shipment, so some orders may be delayed. Besides, shipment fee also went up. Goods holders’ reluctance to seel increased with scare of tight supply in later market. 
　　　
Secondly, price from domestic sulfur enterprises was raised repeatedly. On the last weekday of 2013, price from factor increased RMB30-50/MT. On Jan. 3rd, domestic largest sulfur manufacturers raised price to RMB1200/MT, which enhanced the expectation of increase further more. 
　　　
Thirdly, sulfur stocks kept at a low level in all domestic ports. According to statistics, sulfur stocks in all domestic ports registered 1.293 million MT on Jan. 3rd, 2014, down 26.19%  compared with early December. The stocks were only 190,000MT in Fangchenggang, major manufacturer of ammonium phosphate. The supply is seriously in shortage considering the daily consumption of 7000-10000MT. It is expected some factories may fill stocks, so domestic sulfur market is likely to remain strong.
　　　
Lastly,  weak ammonium phosphate market has seen serious gap from the increasing sulfur price. According to statistics, port price for bulk particle sulfur has increased to RMB1300/MT on Jan. 2nd in northern ports, which was RMB1020/MT in early Dec.. In early December 2013, 64% DAP price from factory was RMB2200/MT and increased to RMB2300/MT on Jan. 2nd, 2014.

From “China Fertilizer Market Weekly Report”