The Impact Of High-Cost Canadian Sulfur Production On Sulfur Trade

A review of the evolution of the North American sulfur market's structure serves to dramatize the kinds of changes that the market is undergoing at the present time. In 1970, the U.S. accounted for 23 percent of world sulfur production. This share has not declined dramatically--to 21 percent in 1993--but the U.S. developed into a substantial net importer of sulfur in the past 25 years. U.S. output was based on large deposits of native sulfur in the western part of the Gulf Coast region with production by the Frasch mining process. Producers of Frasch, or on-purpose sulfur, have historically absorbed cyclical fluctuations in sulfur demand. Two major changes in the North American market from that time to now have been the introduction of increasingly large quantities of by-product sulfur from petroleum refining and natural gas processing operations in the U.S. and Canada, and that Canadian producers have become the marginal supply source for U.S. sulfur consumers.