Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Tight global supplies that cannot be quickly increased and strong Chinese demand have risen sulphur prices to about $110 a tonne this quarter, $36 more than what the product cost last quarter, a report by Reuters reveals.
But the upward trend is not recent and has created the steepest rise in the last two years. This means that fertilizer makers, such as No. 1 producer Mosaic Co. (NYSE:MOS) and the largest one by capacity Potash Corporation of Saskatchewan (NYSE:POT) (TSE:POT), are paying more for the key ingredient in their diammonium phosphate or phosphorus fertilizer, and are also charging farmers more for the final product.
According to the Reuters story, the fertilizer sold at Tampa, Fla., for an average $385 a tonne last week, up 21 per cent year over year.
However, as this spike is taking place, crop prices have slumped and, with them, farmers’ buying power went down. This, together with increased competition from new players, has traditional fertilizer makers struggling.
And the outlook for 2018 isn’t any better. Interviewed by the news agency, BMO analyst, Joel Jackson, said sulphur prices in the first quarter of 2018 are expected to exceed fourth-quarter prices.
2 Comments
Altaf
As far as I know, Sulfur is the most voluminous industrial product in the world. Again as far as I know, most of the Sulfur is produced from the refineries processing sour crude. I also read somewhere that the biggest stocks of Sulfur on the planet are at the Kashgan oil fields where millions of tons of Sulfur are stored in open.
On one hand demand for Sulfur is gaining (according to the article) while on the other hand millions of tons of Sulfur is sleeping in a neighboring country. Why dont they send fleet after fleet of trains to pick up the Sulfur?
Anas Mhd
Saudi Aramco Sulphur prices $192 per metric ton for December..
UAE Adnoc Sulphur prices $195 per metric ton for December.
Qatari Sulphur prices $185 per metric ton for December.
Qatar sold Sulphur to China (in the south) at $225 cfr per metric ton loading in December.
Chinese Sulphur prices $ about 180-227 per metric ton.
USA Tampa Sulphur price $110 per ton.