World Sulphur Outlook - FIRT

1 The Sulphur InstituteWashington, DC, USAW orld Sulphur OutlookDonald L. MessickVice President, Agricultural ProgramsTSI s MissionGlobal advocate for sulphurRepresents all stakeholders producing, buying, selling, handling, transporting, or adding value to sulphurUnified voice for Sulphur producers, consumers, and service providers Promotes safe handling, transportation Protects the environmentAll forms Sulphur Production, by TypeMillion tons Sulphur equivalent010203040506070809010020002001 200220032004200520062007200820092010 YearELEMENTALSOFPYRITESMost growth in non-voluntary sources: elemental and smelter Sulphur Production (1000 tons)200920102015 Canada 4,4124,1503, 1,1901,2501,100 EECA 7,6558,45511,600 West Asia6,8948,23013,290 Europe 1,3651,290865 China 801,0704,000 Others928915915 Total 22,52424,86035,370 Source: Fertecon, 2010 Source: Fertecon, 2010 Oil-Recovered Sulphur Production (1000 tons) 7,6307,8759,400 Europe3,3593,2304,230 West Asia1,9551,9752,905 Asia7,9037,6009,020-China1,3001,5402,300 -India 1,4501,6002,000 Others2,8373,1104,070 Total 22,87423,79029,625 Source.

2 Fertecon, 2010 Middle East production grows million tons, 2009-20190510152025(million tonnes)OthersKuwaitIranQatarSaudi ArabiaUAE Source: IFA, 2011; BSC, April, 2010 West Asia States Sulphur export availability more than doubles, 2009-201905000100001500020000thousand tonsOthersKuwaitIranQatarSaudi ArabiaUAES ource: BSC, 2010 North America: + million tons024681012141618202008200920102011201 22013201420152016201720182019million tonnesCanadaUSA Canadian production from gas declines. All growth from oil sands, which increases from Mt/y (2009) to Mt/y by 2015. Sulphur recovery capacity at US oil refineries increases by ~ Mt/y by : BSC, 2010US Gulf forming plant capacity now totals >12,000 (t/d)Gulf Sulphur ServiceDonaldsonville LA4,000 Gulf Sulphur ServiceGalveston TX2,000 Martin MidstreamBeaumont TX4,000 Koch Sulfur ProductsBeaumont TX345 Koch Sulfur ProductsCorpus Christi TX2,000 And more plants are under study, some at inland locationsSource: ICIS, 2011 FSU: + million tons024681012141620082009201020112012201 3201420152016201720182019(million tonnes)RussiaKazakhstanTurkmenistanUzbek istanFSU Sulphur from gasGas-Recovered Sulphur Production (1000 tons)Source: IFA, 2011.

3 BSC, April, 2010 FSU Offshore ExportsSource: Oxbow, 2011 Elemental Sulphur ProductionMillion tons sulphurSource 2008 and 2009: The Sulphur InstituteSource 2010-2014: British Sulphur Consultants April Ame ricaMiddle EastFSUEast AsiaRe st of W Strongest growth is in Middle East, FSU and Asia. All growth is from involuntary : Fertecon, 2010 Source: Fertecon, 201093% 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 tonsSulphur Overview - UsesSulphuric AcidNickel Projects Will Create New DemandLocationSulphur Requirement(tonnes/year)Goro, New Caledonia460,000 Ravensthorpe, Australia500,000 Ramu River, Papua New Guinea360,000 Ambatovy, Madagascar600,000 Moa, Cuba200,000 LocationSulphur Requirement(tonnes/year)Goro, New Caledonia460,000 Ravensthorpe, Australia500,000 Ramu River, Papua New Guinea360,000 Ambatovy, Madagascar600,000 Moa, Cuba200,000 Source.

4 ICIS, 2011 Sulphur ConsumptionMillion tons Sulphur equivalentAfter two years of decline, fertilizer demand recovers in 2010 Industrial demand impacted by declining global economy; slight recovery in 2010010203040506070809010020002001200220 032004200520062007200820092010 YearMillion Tons Over 50% of World Sulphur demand Demand in 2010 increased Maaden adding Mt/y S demand Fertilizer demand growth to come mostly from E. Asia, L. America and S. AsiaSulphur Overview - Uses Phosphate Traded Sulphur - 2009 Morocco11%Africa4% Europe2%Others7%Oceania2%China43% million tonsImportsExportsSource: FRCIran4%Japan5%Saudi11%W. Europe7% +FSU11%Russia10%Others11%Poland1%Kuwait3 %UAE6% Sulphur Imports by Origin024681012 Million Tons Per : China Sulphuric Acid Industry Association* ProjectionDeclining trend from N. America (22% of the total in 2010) more than offset by increases from Mideast (42% of the total).

5 Asia and FSU account for 20% and 16%, respectivelySulphur: 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 materialsSulphur - fourth major plant nutrientRequired in similar amounts as P, about million tons S in 10 million tons S applied as a fertilizer worldwideTotal S fertilizer market potential for million tons S million tons by 2015, primarily in Asia and the Deficit and Requirement: GlobalPlant Nutrient Sulphur Requirement and Deficit (Mt)051015202530199219941996199820002002 200420102015Ye a rM illio n T o n s S u lp h u rCrop RequirementFertilizer Applied2015 Deficit = Million ricaLatinAme ricaWesternEuropeEa ste rnEurope20052015 Million Tons Per YearRegional Plant Nutrient Sulphur Deficit WorldwideAsia 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.

6 Sulphur fertilizers and their use provides potential market of million tons of Sulphur consumption annually, benefiting the industry. Fertilizer producers need to address this market potentialSulphur Fertilizers: New Groundfor Fertilizer IndustrySulphur World Symposium 2012 Mark 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 Sessionfor those new to the industryVisit updates!BP Products North America, Sulphur CompanyChemical InitiativesChemtrade AglobisCitis SAConocoPhillips CompanyCon-Sul, Technology USA LLCE nersul RailwayExxonMobil Oil CorporationFranz Fischer Spedition Baker & Bro., Santa Alicia Ltda. (ISA)Interacid Trading Sulphur Sulfur Products Company LLC Marsulex, Operating Partnership, CorporationMitsui & Co.

7 ( ), Fertilizer LLCO xbow CarbonPotashCorpPrimary Resources Sulphur CorporationSaeKwang Chemical Ind. Co. Process SystemsSavage Services CorporationSchiber Truck CompanyShell Sulphur SolutionsSino-Chem Fertilizer Company GmbHSultran Qatar International Petroleum Marketing Company Ltd. Tessenderlo Kerley, , Tank Car CompanyUralchemValero Marketing and Supply CompanyZwaans van der Heuvel Tankvaart BVTSI Member Companies