Brazilian sulphur imports dip 20pc in 1H24

Brazilian imports dropped by 20pc in the first half of 2024 from a year earlier, with June imports down by 3pc on the same month last year at 264,000t.

• Imports in January-June totalled 1.19mn t, GTT data show, a drop of 310,000t on the year.
• Imports from the US were broadly stable at 407,000t, with the US Gulf coast the top sulphur supplier to Brazil. Fertilizer producer Mosaic typically moves product from the Gulf coast to Santos, while some trader business also takes place from the Gulf coast to Brazilian sulphur consumers.
• Saudi Arabian imports rose by 24pc or 50,000t to 263,000t, as demand from China and Indonesia was lacklustre, prompting tonnes to move westwards.
• Kazakh sulphur shipments dropped by as much as 65pc to just 98,000t, as more Kazakh product has been moving to Morocco. Kazakhstan was the top supplier to Morocco in the first four months of this year, the latest GTT data for this route show, at 1.26mn t, more than twice as high compared with a year earlier.
• Changed trade flows are a response to altering vessel traffic. As the security situation in the Red Sea region leading to the Suez Canal has deteriorated, most sulphur shipments are now taking the longer route around the Cape of Good Hope. This has increased freight rates to Morocco from the Middle East, making Brazil a more logical route for Saudi exports, while Kazakh product moving from the Baltic to north Africa has a freight advantage over Brazilian deliveries.
• Deliveries from the UAE dropped by 27pc to 152,000t and from Qatar by 27pc to 109,000t, as these suppliers looked to markets east of Suez for the best netbacks with lower freight costs, raising exports to China substantially, while also supplying some tonnage to Indonesia.
• A three-week maintenance period is scheduled at the Santos Tiplam terminal, used by Mosaic to receive its sulphur vessels, from 10 July. This will limit vessel arrivals through the period, and further spot sales are expected for August arrival.
• Brazilian sulphuric acid imports totalled 298,000t in the first half of 2024, up by 22pc on the year, as burning capacity remains limited and the market has favoured sulphuric acid imports over sulphur. Unigel's new sulphur burner did not come on line at the beginning of the year as expected, and Unigel's fertilizer operations were suspended in early March for an indefinite period.

By Maria Mosquera