How to Compare Granular Sulphur Prices: FOB, CFR, CIF and EXW

Two sulphur numbers are comparable only when the product and commercial basis match. A lower number can be worse once freight, insurance, handling, finance, discharge, or specification differences are normalized.

Start with a comparison sheet

Record these fields for each indication:

1. product form and grade;
2. purity, moisture, ash, acidity, particle-size range, and test method;
3. bulk or bagged packing;
4. quantity and tolerance;
5. named place or port;
6. Incoterms rule and edition;
7. currency, unit, quotation date, and validity;
8. laycan or delivery window;
9. freight, insurance, loading, discharge, storage, and inland-cost assumptions;
10. inspection, document, payment, and bank requirements.

If any field is unknown, the comparison is incomplete.

FOB, CFR and CIF do not divide risk the way many buyers assume

Under the ICC rules for sea and inland-waterway transport, FOB delivery and risk transfer occur when the goods are on board the nominated vessel. Under CFR, the seller also contracts and pays freight to the named destination port, but risk still transfers at shipment. CIF adds seller-arranged minimum insurance cover while keeping the shipment-point risk transfer.

That distinction matters. A CIF number is not simply an FOB number plus freight. Insurance scope, destination charges, nomination procedure, demurrage exposure, discharge terms, and documentary requirements can change the economics.

EXW is further upstream. The named place must be explicit, and the buyer must test whether it can practically control loading, export clearance, inland transport, terminal access, and ocean freight. For an international bulk movement, an unexplained EXW number is not a landed-cost answer.

Normalize to one defined basis

Choose the basis the buyer actually needs, such as:

CIF Zhenjiang, Incoterms 2020, bulk vessel, 30,000 MT, June laycan, stated discharge rate, CAD or USD per metric tonne.

Then convert each indication to that same basis using dated, attributable cost inputs. Keep each input separate. Do not hide freight, insurance, finance, handling, or GMC compensation inside one unexplained adjustment.

Do not use customs unit value as a quote

Statistics Canada explains that customs unit values reflect cost per reported quantity and are quality-checked as statistical data. They still combine transactions recorded under a customs classification. They do not isolate one seller, parcel, grade, packing method, contract date, or Incoterm.

The GMC sulphur intelligence page publishes calculated Canadian HS 250300 unit values with this limitation attached. The dedicated customs unit value versus spot price explainer owns the full interpretation. These ratios can describe reported trade. They cannot price a current cargo.

USGS price observations also retain their published basis. A U.S. annual free-on-board mine or plant value, for example, is not automatically comparable with a current Canadian FOB terminal indication or a CIF China offer.

The decision rule

Do not ask which number is lowest. Ask which fully specified, currently valid, documented offer produces the lowest defensible landed cost under a risk allocation the buyer can accept.

Until the product, basis, logistics, documents, and counterparty are aligned, the numbers are leads, not a market.

Who pays freight under FOB and CIF?

Under FOB, the buyer contracts the main ocean carriage. Under CIF, the seller contracts and pays the carriage and required insurance to the named destination port. Risk transfer and cost allocation still need to be read from the applicable rule and contract. “Seller pays freight” does not mean the seller carries every voyage risk until discharge.

Is CIF always more expensive than FOB?

The CIF number contains more seller-arranged cost than an otherwise matching FOB number. That does not make it worse. The buyer may obtain a better or worse freight position on its own. Compare the all-in economics, risk, control and documentary fit.

A clean comparison output

Show the original quote, every normalization adjustment, the source date for each adjustment and the final common basis. If the parties have not confirmed the same port, packing and trial quantity, stop the calculation and fix the requirement first.

Sources and review record

These are the primary or authoritative sources used for this explainer. Listing a source does not imply endorsement of GMC.

1. Incoterms 2020 rules overview International Chamber of Commerce · reviewed August 26, 2026
2. Reference Guide to Canadian International Merchandise Trade Statistics Statistics Canada · reviewed August 26, 2026
3. Mineral Commodity Summaries 2026 U.S. Geological Survey · reviewed August 26, 2026