Baltimore opens third temporary shipping channel
A third temporary shipping channel has opened at the Port of Baltimore to allow more vessel traffic around the collapsed Francis Scott Key Bridge.
Located on the northeast side of the main channel, the new passage has a controlling depth of 20-ft, a 300-ft horizontal clearance, and a vertical clearance of 135-ft.
When combined with two other temporary channels opened earlier this month the port should be able to handle "... approximately 15 percent of pre-collapse commercial activity," said David O'Connell, the federal on-scene coordinator.
The main shipping channel of the Port of Baltimore — a key conduit for US vehicle imports and coal exports — is expected to be reopened by the end of May, the Maryland Port Administration said earlier this month.
The bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into one of its support columns. Salvage teams have been working ever since to remove debris from the water and containers from the ship in order to clear the main channel.
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US job growth nearly halved in April
US job growth nearly halved in April
Houston, 3 May (Argus) — The US added fewer jobs in April as the unemployment rate ticked up and average earnings growth fell, signs of gradually weakening labor market conditions. The US added 175,000 jobs in April, the Labor Department reported today, fewer than the 238,000 analysts anticipated. That compared with an upwardly revised 315,000 jobs in March and a downwardly revised 236,000 jobs in February. The unemployment rate ticked up to 3.9pc from 3.8pc. The unemployment rate has ranged from 3.7-3.9pc since August 2023, near the five-decade low of 3.4pc. The latest employment report comes after the Federal Reserve on Wednesday held its target lending rate unchanged for a sixth time and signaled it would be slower in cutting rates from two-decade highs as the labor market has remained "strong" and inflation, even while easing, is "still too high". US stocks opened more than 1pc higher today after the jobs report and the yield on the 10-year Treasury note fell to 4.47pc. Futures markets showed odds of a September rate cut rose by about 10 percentage points to about 70pc after the report. Average hourly earnings grew by 3.9pc over the 12 month period, down from 4.1pc in the period ended in March. Job gains in the 12 months through March averaged 242,000. Gains, including revisions, averaged 276,000 in the prior three-month period. Job gains occurred in health care, social services and transportation and warehousing. Health care added 56,000 jobs, in line with the gains over the prior 12 months. Transportation and warehousing added 22,000, also near the 12-month average. Retail trade added 20,000. Construction added 9,000 following 40,000 in March. Government added 8,000, slowing from an average of 55,000 in the prior 12 months. Manufacturing added 9,000 jobs after posting 4,000 jobs the prior month. Mining and logging lost 3,000 jobs. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK decoiler Atlantic Steel enters administration
UK decoiler Atlantic Steel enters administration
London, 3 May (Argus) — Birkenhead-based decoiler Atlantic Steel filed for administration yesterday, according to a filing seen by Argus . The company has been under pressure since its previous owners took a large chunk of cash out of the business as part of a management buyout in 2022. Credit insurers began to pull cover on the business towards the end of last year, and suppliers have been calling retention of title, which protects suppliers in the event of insolvency or bankruptcy, in recent days. Sources suggest the debt of the business at the time of administration is around £18mn. The previous owners are preferential creditors after the banks, as they were due another £5mn from the business, according to Companies House filings. Market sources suggest it is likely the business will be bought out of administration, with other service centres interested in the assets — the lease on the site expires in the next few years but is extendable, and Atlantic operates the largest decoiler in the UK, capable of decoiling over 2.5m wide. It is also situated on the dock at Birkenhead, which cuts inland transportation costs. The UK HRC market has been under pressure for a number of months, in line with the struggles seen in Europe. Argus ' weekly assessment was £605/t ddp West Midlands on 2 May, down from a recent peak of £700/t at the start of February. The assessment reached an all-time high of £1,200/t on 31 March 2022, and the management buyout took place later that year. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Italian flat steel trading at premium on low supply
Italian flat steel trading at premium on low supply
London, 3 May (Argus) — Italian coil prices are trading at an atypical premium to northwest EU prices, especially for downstream products such as cold-rolled coil (CRC) and hot-dipped galvanised (HDG) coil. Multiple factors are playing into the current trend, which several producers say is unlikely to be sustainable given higher costs for northwestern mills — most notably, the comparatively brighter economic picture in southern Europe compared with the north, and lower steel output in Italy. Germany manufacturing PMI data has been consistently below Italian levels since August 2022, and registered its last monthly growth nearly two years ago in June 2022. Italian manufacturing has expanded in five months over the same period, registering its last increase in March 2024. In recent years, German manufacturers have been buffeted by the loss of cheap Russian energy, a reduction in demand from key export markets, most notably China, as well as the lack of investment in infrastructure and political difficulties. And yet, German hot-rolled coil (HRC) output increased by 5pc year on year in the first quarter of this year, partially driven by mill restocking, while Italian output slumped by just over 9pc in the same period. Naturally, Acciaierie d'Italia halting furnaces and producing with just one asset of 1 mn t/yr capacity plays a role in the lower overall output, but it has also been running just one rolling line at low capacity. Novi Ligure has nearly stopped, and producing depending on if stocks of raw material match customer enquiry. Financially troubled re-roller Liberty Magona has also produced intermittently and at low levels as it has struggled to obtain letters of credit, and thus only produced when able to buy HRC by paying in advance, or financed by third-parties. Producer Arvedi has taken the decision to drastically reduce or even stop offering CRC over the past year, on its inability to compete with Asian import pricing. CRC is the only major flat steel product to have not been hit by dumping duties in recent years, and weak demand in Asia saw a shift of regional mills to the EU market. Ample quota availability for CRC also meant that safeguards were not a factor, unlike for HDG. Arvedi has continued supplying HDG, and is currently one of two constant Italian suppliers of the material. The only regular supplier of both downstream products has become re-roller Marcegaglia. Again, the mill has mostly been selling CRC for very prompt delivery enquiries, unable to compete with Japanese, Korean and Indian import CRC, which have become the reference. Despite the lower volumes of CRC the producer has been selling, it has tried to maintain the historical €10-20/t differential between CRC and HDG offers, with varying success over the past months. The uncertainty of the HRC import duty on "other countries" material has likely made the producer, which relies heavily on imported coils and is one of the largest spot buyers in the world, less clear on the discounts it can provide given the varied duty it has had to pay in recent quarters. Sales opportunities in central and east Europe over the past months have also aided its order books. Transportation costs, slim margins and regional competition, as well as weak fundamentals, have kept north EU mills more focused on closer-by markets. While some sellers have been present in Italy with both CRC and HDG, they have not been undercutting Italian producers. In addition, demand for HDG has been relatively stable, while stringent safeguard quotas have not allowed Italian prices to fall under pressure from imports. EU car registrations in the first quarter were up by 4.4pc year on year, and although both Germany and Italy posted growth, the German increase was below the average rate for the bloc, while Italy was up by 5.7pc. Clearly, EU producers have offloaded some volumes of both CRC and HDG in the export markets this year, with exports of the products rising dramatically in January-February. The majority of those volumes have come from northwest EU suppliers. Of late, rising import prices have also helped southern mills more, given the quicker impact imports have on domestic prices in the south. By Lora Stoyanova and Colin Richardson HDG CRC spreads $/t Germany and Italy manufacturing PMI Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canada rail strike to affect grains, industry says
Canada rail strike to affect grains, industry says
London, 3 May (Argus) — Strike action by workers at Canadian National Railway and Canadian Pacific Kansas City could have significant repercussions for the country's grains market, according to industry body the Grain Growers of Canada (GGC). Members of the Teamsters Canada Rail Conference authorised a strike on 1 May. Industrial action at the two major Canadian railroad companies could begin as early as 22 May. The parties have now entered a mandatory period of mediation. The GGC has called for a resolution to be reached in this period that safeguards Canada's grains supply chain. Canadian grain trade operations are particularly dependant on rail logistics, with the vast majority of grain from producing regions transported to ports by rail — 94pc of all Canadian grain is transported by rail, according to the GGC. Disrupted logistics could limit grain storage capacity, which could result in less stock available for export and curb selling by farmers. This could cause importers to seek alternative grains origins. Members are "worried about the impact a strike would have [...] on Canada's reputation as a reliable supplier", the GGC said. "Consecutive supply chain disruptions have already strained our relationships with international buyers. Another stoppage could drive them to seek other markets, affecting us in the long term," GGC's second vice chair Brendan Phillips said. In the high-protein wheat market — one of Canada's major agricultural exports — buyers may turn to US-origin Hard Red Spring wheat as an alternative, traders in both regions told Argus . This could have a significant effect on the market. "In June 2023, Canada exported over 2.6mn t of grain, highlighting the potential economic loss of over $35mn for each day in June that a strike persists," the GGC said. That said, wheat exports accounted for around 1.7mn t of this volume, Argus -aggregated data show. Canada's wheat exports have increased significantly ahead of the long-term average pace in 2024, surpassing 2023 levels by 710,000t in the week to 28 April. Remaining stocks of the 2023-24 wheat crop are low, according to market participants, and with the winter wheat harvest not scheduled to begin until July, low stocks could shelter Canada's wheat market to some extent. By Megan Evans Canadian wheat (excl. durum) exports mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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