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Tampa sulfur eases to $352/lt by mid-July from the April peak

USGS recorded the mid-year retreat after the early-April $481/lt high, tracking collapsing Chinese phosphate export runs.

Tampa, Florida. The US phosphate molten sulfur contract is named for this hub.
Tampa, Florida. The US phosphate molten sulfur contract is named for this hub. Clément Bardot / Wikimedia Commons · CC BY-SA 4.0

USGS notes Tampa contract prices decreased to $352 per long ton by mid-July 2022 after the early-April $481 per long ton peak. The mid-year retreat tracked collapsing Chinese phosphate export runs and rising US Gulf refinery sulfur output. The PDF is at https://pubs.usgs.gov/periodicals/mcs2023/mcs2023-sulfur.pdf.

$352 is still a historically high contract. It is $129 below the peak and $262 above the $90 fourth-quarter close. Mid-July is the hinge, not the floor. Seaborne spots were already crashing. Qatar August QSP would be $77. Vancouver FOB was heading under $65. Tampa's quarterly structure delayed the full print until the fourth quarter.

Alberta recovered sulfur still leaves mainly through Vancouver. Canadian FOB near $478 in May and US Gulf spot in a greater-than-$440 range over six months, Argus, are the spots Tampa $352 was catching down toward. Molten rail from Alberta into remaining US phosphate runs still delivered into this $352 contract. Pacific solid was already a different number.

China's July de-facto quota is dated the same month as this $352 print. DAP operating rates 40 to 50 percent at river ports by end-July are the plant-level confirmation. April-June Chinese sulfur imports of 2.4 million tonnes, up 50 percent, were the last surge. July-October 2.5 million tonnes, down 5.9 percent, begin here.

US Gulf refining elevated, Mosaic utilization sinking, inventories swelling in early third quarter: the Atlantic mismatch Argus named is why $352 could not hold. Fuel demand added recovered tonnes. Phosphate subtracted demand. Two cycles, one contract.

January-October Vancouver exports of 2.39 million tonnes were already most of a 2.79 million tonne year. Mid-July Tampa at $352 still looked expensive versus the FOB crash that was arriving. Forming plants that had remelted at $478 were about to find $65. The $352 contract is the last high Tampa of the cycle.

2023's mid-July $55 is the rhyme one year later. 2025's early-April $270 is a different market. Licensed weekly grids are not restated. The $352 per long ton figure is USGS.

Figures follow USGS MCS 2023. Mid-July $352 Tampa is the hinge between the $481 peak and the $90 close.