SO_2 supported, NO_x wanes

摘要

Spot SO_2 prices are creeping back off a recently tested floor, last trading at 625 dollars today. Buying interest is not as strong as might be expected, given that the market has staged a correction down from record highs of 1,600 dollars last December. Natural gas prices have eased, and low-sulfur coal supplies have improved. Participants may simply be waiting for the dust of recent volatility to settle to get a sense of future direction. The spreads between vintages out to 2009 have compressed dramatically. The 2006/2008 spread narrowed to 15 dollars by the end of the month. The 2008/2009 spread traded at 35 dollars on June 28.