The Sulphur InstituteWashington, DC, USA

World Sulphur Outlook

Donald L. MessickVice President, Agricultural Programs

TSI’s Mission

Global advocate for sulphur

Represents all stakeholders producing, buying, selling, handling, transporting, or adding value to sulphur

Unified voice for sulphur producers, consumers, and service providers

•Promotes safe handling, transportation•Protects the environment

All forms Sulphur Production, by TypeMillion tons sulphur equivalent

0

10

20

30

40

50

60

70

80

90

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

ELEMENTAL SOF PYRITES

Most growth in non-voluntary sources: elemental and smelter acid

78.373.1

51.848.8

Gas-Recovered Sulphur Production (1000 tons)2009 2010 2015

Canada 4,412 4,150 3,600U.S.A 1,190 1,250 1,100EECA 7,655 8,455 11,600West Asia 6,894 8,230 13,290Europe 1,365 1,290 865China 80 1,070 4,000Others 928 915 915Total 22,524 24,860 35,370

Source: Fertecon, 2010

Source: Fertecon, 2010

Oil-Recovered Sulphur Production (1000 tons)

2009 2010 2015U.S.A 7,630 7,875 9,400Europe 3,359 3,230 4,230West Asia 1,955 1,975 2,905Asia 7,903 7,600 9,020-China 1,300 1,540 2,300-India 1,450 1,600 2,000Others 2,837 3,110 4,070Total 22,874 23,790 29,625

Source: Fertecon, 2010

Middle East production grows by12.6 million tons, 2009-2019

0

5

10

15

20

25(m

illion

tonn

es)

Others KuwaitIran QatarSaudi Arabia UAE

•

Source: IFA, 2011; BSC, April, 2010

West Asia States’ sulphur export availability more than doubles, 2009-2019

0

5000

10000

15000

20000

thou

sand

tons

Others Kuwait Iran Qatar Saudi Arabia UAE

Source: BSC, 2010

North America: +1.6 million tons

0

2

4

6

8

10

12

14

16

18

20

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

mill

ion

tonn

es

Canada USA

• Canadian production from gas declines. All growth from oil sands, which increases from 1.6 Mt/y (2009) to 3.0 Mt/y by 2015.

•Sulphur recovery capacity at US oil refineries increases by ~ 2.5 Mt/y by 2013.

Source: BSC, 2010

US Gulf forming plant capacity now totals >12,000 t/d.

Company Location Capacity (t/d)

Gulf Sulphur Service Donaldsonville LA 4,000

Gulf Sulphur Service Galveston TX 2,000

Martin Midstream Beaumont TX 4,000

Koch Sulfur Products Beaumont TX 345

Koch Sulfur Products Corpus Christi TX 2,000

And more plants are under study, some at inland locations

Source: ICIS, 2011

FSU: +6.4 million tons

0

2

4

6

8

10

12

14

16

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

(mill

ion

tonn

es)

Russia KazakhstanTurkmenistan Uzbekistan

FSU sulphur from gas

Gas-Recovered Sulphur Production (1000 tons)

Source: IFA, 2011;BSC, April, 2010

FSU Offshore Exports

Source: Oxbow, 2011

Elemental Sulphur ProductionMillion tons sulphur

Source 2008 and 2009: The Sulphur InstituteSource 2010-2014: British Sulphur Consultants April 2010

15.6 15.3 15.5 16.7 17.1 17 16.9

8.4 9.1 10.2 12.7 13.3 14.3 15.38.9 8.7 10

10 10.3 11.7 12.45.95 6.2 67.2 8.7 9.6 10.4

9.8 9.5 10.311.3 12.1 12.26 12.45

0

10

20

30

40

50

60

70

2008 2009 2010 2011 2012 2013 2014

Year

North America Middle East FSU East Asia Rest of World

48.651.9

• Strongest growth is in Middle East, FSU and Asia.• All growth is from involuntary production.

Source: Fertecon, 2010

Source: Fertecon, 2010

93% of sulphur consumption is as sulphuric acid7% is consumed as elemental sulphurTotal world acid production in 2010: 200 million

tons, up 9% from 2009• From elemental: 122 million tons• From smelters: 64 million tons• From pyrites: 14 million tons

Sulphur Overview - UsesSulphuric Acid

Nickel Projects Will Create New Demand

Location Sulphur Requirement(tonnes/year)

Goro, New Caledonia 460,000

Ravensthorpe, Australia 500,000

Ramu River, Papua New Guinea 360,000

Ambatovy, Madagascar 600,000

Moa, Cuba 200,000

Location Sulphur Requirement(tonnes/year)

Goro, New Caledonia 460,000

Ravensthorpe, Australia 500,000

Ramu River, Papua New Guinea 360,000

Ambatovy, Madagascar 600,000

Moa, Cuba 200,000

Source: ICIS, 2011

Sulphur ConsumptionMillion tons sulphur equivalent

After two years of decline, fertilizer demand recovers in 2010

Industrial demand impacted by declining global economy; slight recovery in 2010

0

10

20

30

40

50

60

70

80

90

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Year

Milli

on T

ons

Sul

phur

Fertilizer Non-Fertilizer 76.470.8

• Over 50% of world sulphur demand • Demand in 2010 increased• Maaden adding 1.5 Mt/y S demand• Fertilizer demand growth to come mostly from E.

Asia, L. America and S. Asia

Sulphur Overview - Uses Phosphate Fertilizers

…for someone…

Internationally Traded Sulphur - 2009

Morocco11%

Africa4%

U.S.8%

India5%

Tunisia5%

ME5%

Latin Am.8% Europe

2%

Others7%

Oceania2%

China43%

28.3 million tons

ImportsExports

Source: FRC

Iran4%

Japan5%

Saudi11%

W. Europe7%U.S.

8%

Mexico2%

Kaz+FSU11%

Russia10%

Others11%

Poland1%

Kuwait3% UAE

6%

Venz.1% Canada

20%

China Sulphur Imports by Origin

0

2

4

6

8

10

12

Mill

ion

Tons

Per

Yea

r

1995 1997 2000 2002 2005 2007 2009 2010

TotalN.AmericaE.AsiaMideast

Source: China Sulphuric Acid Industry Association

* Projection

Declining trend from N. America (22% of the total in 2010) more than offset by increases from Mideast (42% of the total); Asia and FSU account for 20% and 16%, respectively

Sulphur: An Advantaged Element• Essential for protein in

humans, animals and plants• Valuable raw material for

making wide variety of products in everyday life

• Natural element in air, water and land

• Valuable: plant nutrient• Valuable soil amendment• Valuable component of select

construction materials

Sulphur - fourth major plant nutrient

Required in similar amounts as P, about 20.6 million tons S in 2005.

About 10 million tons S applied as a fertilizer worldwide

Total S fertilizer market potential for 10.6 million tons S today

12.5 million tons by 2015, primarily in Asia and the Americas.

Sulphur Deficit and Requirement: Global

Plant Nutrient Sulphur Requirement and Deficit (Mt)

0

5

10

15

20

25

30

1992 1994 1996 1998 2000 2002 2004 2010 2015Year

Milli

on T

ons

Sulp

hur

Crop RequirementFertilizer Applied

2015 Deficit = 12.5 Million Tons

5.4

6.7

2

2.6

1.5

2.1

1.31.6

1.3 1.5

0.71

0.740.8

0.360.44

0

1

2

3

4

5

6

7

Asia China India Africa NorthAmerica

LatinAmerica

WesternEurope

EasternEurope

2005 2015

Mill

ion

Tons

Per

Year

Regional Plant Nutrient Sulphur Deficit Worldwide

Asia has the largest regional deficit around the world with India and China in the lead

Traditional S fertilizer production will not meet the increasing demand for sulphur in agriculture.

Sulphur fertilizers and their use provides potential market of 9.6 million tons of sulphur consumption annually, benefiting the industry.

Fertilizer producers need to address this market potential

Sulphur Fertilizers: New Groundfor Fertilizer Industry

Sulphur World Symposium 2012Mark your calendars now!

The Premier Sulphur Industry Event will be in Antwerp, Belgium – April 23-25, 2012 for:

• Two days of networking with top industry players• Insightful speakers on key topics• A Sulphur Education Session for those new to

the industry

Visit www.sulphurinstitute.org for updates!

BP Products North America, Inc.California Sulphur CompanyChemical InitiativesChemtrade AglobisCitis SAConocoPhillips CompanyCon-Sul, Inc.CoreSulphurCrescent Technology Inc.Devco USA LLCEnersul Inc.Etihad RailwayExxonMobil Oil CorporationFranz Fischer Spedition GmbHGATXH.J. Baker & Bro., Inc.Importadora Santa Alicia Ltda. (ISA)Interacid Trading S.A.Inter-ChemJupiter Sulphur L.L.C.Koch Sulfur Products Company LLC Marsulex, Inc.Martin Operating Partnership, L.P.

Mitsubishi CorporationMitsui & Co. (U.S.A.), Inc.Mosaic Fertilizer LLCOxbow CarbonPotashCorpPrimary Resources Inc.PRISM Sulphur CorporationSaeKwang Chemical Ind. Co. Ltd.Sandvik Process SystemsSavage Services CorporationSchiber Truck CompanyShell Sulphur SolutionsSino-Chem Fertilizer Company Ltd.solvadis GmbHSultran Ltd.Tasweeq – Qatar International Petroleum

Marketing Company Ltd. Tessenderlo Kerley, Inc.Transammonia, Inc.Union Tank Car CompanyUralchemValero Marketing and Supply CompanyZwaans van der Heuvel Tankvaart BV

TSI Member Companies