Coronavirus to complicate Australian shipping

Market: Coal, Coking coal, Metals, Natural gas
04/02/20

The Australian government's decision to impose a 14-day quarantine on vessels that leave mainland China after 1 February bound for Australian ports will cause scheduling issues for Australian energy and mineral shipments.

Pilots, who are used to guide bulk carriers, LNG carriers and other vessels into most Australian ports, and other Australia-based workers will not board vessels that left mainland China after 1 February until they have passed a 14-day quarantine period. This could cause delays for vessels arriving from China to Australian iron ore, LNG, bauxite and other mineral loading terminals in Western Australian (WA), the Northern Territory and far north Queensland, which are usually less than a 14-day journey from key Chinese ports. It may also cause delays for vessels that need Australian reef pilots to navigate the Great Barrier Reef on their approach to coal and LNG terminals in Queensland, as these personnel often join vessels some distance from the port.

Vessels must declare if any of the crew has symptoms, such as a fever, breathlessness or flu-like symptoms. If there is any sickness on vessels from mainland China within the quarantine period, then the quarantine will be restarted for a further 14 days.

The uncertainty created by the possible extension of quarantines is likely to cause particular problems for multi-user ports, like the WA iron ore and lithium concentrate export port of Port Hedland, as well as the coal and LNG port of Gladstone in Queensland. These ports operate complex schedules designed to maximise access to congested channels for multiple users.

Shipping queues are already longer than normal on the east coast of Australia because of increased activity and some difficult weather conditions over the past two weeks. The most northerly Queensland coal port of Abbot Point had 13 vessels queuing today, up from an average of around four, while Gladstone had 27 that is around double its average. The queue outside the adjacent coal ports of Hay Point and Dalrymple Bay Coal Terminal is at 26, which is only marginally above average, while the queue at Newcastle is at an 18-month high of 20 vessels.

By Jo Clarke

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12/06/25

EPA draft biofuel blend mandate expected Friday: Update

Updates with changes throughout New York, 12 June (Argus) — President Donald Trump's administration plans to release draft biofuel blend mandates for 2026 and 2027 on Friday, according to three people familiar with the matter. The draft quotas, in addition to a separate final rule cutting cellulosic biofuel mandates for last year, exited White House interagency review on Wednesday, the last step before major regulations can be released. The Trump administration has meetings with legislative stakeholders on Friday morning ahead of the public release, three people said. Previously scheduled meetings through the end of the month as part of the interagency review process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. EPA said the rules will be posted on its website once they are signed by Lee Zeldin, the agency's administrator. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. US senator Chuck Grassley (R-Iowa) said Thursday that closed biodiesel plants in his state needed a 5.25bn mandate to reopen. Meanwhile, a coalition of independent and small refiners that have long lamented the costs of the program wrote to EPA this week asking for less-aspirational future mandates, including for the conventional category mostly met by corn ethanol. RIN markets were volatile today, trading higher in the morning before slipping lower on fears the mandates would not meet industry expectations. Current year ethanol D6 RINs traded as high as 99¢/RIN before falling as low as 90¢/RIN. Current year biomass-based diesel D4 RINs ended Thursday at 102.5¢/RIN, equal to their close the prior day. Small refinery exemptions loom Zeldin told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering 10 compliance years still pending. It is unclear whether the rule will provide much clarity on EPA's plans for program waivers, but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. In both the Trump and Biden administrations, EPA estimated future exempted volumes when calculating the percentage of biofuels individual refiners had to blend, effectively requiring those with obligations to shoulder more of the burden to meet high-level volume targets. The agency could continue that approach, but it would be more legally treacherous for the agency to similarly "reallocate" exempted volumes from past years into future standards, lawyers said. EPA by law also has to consult on exemption decisions with the Department of Energy, which a person familiar said was "still going through the scoring process" for assessing some small refinery applications, making quick resolution of the issue unlikely. Unresolved court cases, including a Supreme Court case about the proper venue for small refinery waiver disputes, could also give regulators pause until they know more. Tax credit clarity expected soon Senate committees this week have been releasing their versions of key parts of the major Republican spending bill, and the Senate Finance Committee is expected to do so soon, potentially as early as Friday according to people familiar. The incentive is crucial for biofuel production margins and thus for the viability of EPA mandates too. The version that passed the House last month would extend the "45Z" clean fuel production credit through 2031, bar regulators from considering indirect land use emissions, and restrict eligibility to fuels from North American feedstocks. While various ideas have circulated this year, lobbyists expect the Senate to preserve the general structure of the credit, which throttles benefits based on carbon intensity, rather than reinvent a new subsidy. Still, some Republicans have expressed concern with the House's phaseout of tax credit "transferability", which benefits smaller companies without much tax liability. And major oil refiners with renewable diesel plants reliant on Asian used cooking oil and South American tallow have lobbied for more flexibility around foreign feedstocks. Any changes that up the credit's costs could be controversial too among conservatives worried about the bill's impacts on a mounting federal budget deficit. And the complex tax credit will ultimately need final regulations from the US Department of Treasury clarifying eligibility. At a Senate hearing Thursday, Treasury secretary Scott Bessent said that the Trump administration planned to implement the credit in a way to "not allow for foreign actors to have a back door into the program." By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil BEV sales hit record high in May

12/06/25

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12/06/25

Brazil BEV sales hit record high in May

Sao Paulo, 12 June (Argus) — Brazilian battery electric vehicle (BEV) sales reached an all-time monthly high of 6,969 units in May because of improving charging infrastructure and greater consumer familiarity with the vehicles, according to the Brazilian EV association ABVE. After four months of below-average BEV sales in Brazil — driven by record-high consumer demand for hybrid electric vehicles (HEVs) — sales of fully electric models rebounded in May, rising by 35pc from a year earlier. Sequentially, BEV sales surged 48.2pc from April's 4,702 units, ABVE data showed. In May, fully electric vehicle sales grew in all but two states compared with April. The Northeastern region, characterized by less-developed charging infrastructure outside major urban centers, saw the highest monthly growth. Sales rose by 59pc to 1,665 units in May from the prior month, according to data from ABVE. Chinese automaker BYD further increased its dominance in the Brazilian EV market, accounting for 5,596 units sold, more than 80pc of all BEV sales in May. Volvo and fellow Chinese producer Great Wall Motors (GWM) closed out the top three at 514 and 181 units, respectively. BYD does not see this spike as a seasonal or isolated phenomenon, but as a new reality in the Brazilian auto market, which is getting used to EVs, according to the company's senior VP in Brazil, Alexandre Baldy. "We are increasingly growing our dealership network in Brazil at 180 stores," Baldy told Argus on Thursday. "We'll reach 272 stores by the end of the year, solidifying our presence in all regions of the country." Between April and May, BYD opened 15 new dealerships, focusing on more remote regions such as the Midwest and Northeast. ABVE cited, in a release, the scaling of new brands and models, along with improving charging infrastructure, as reasons for the high demand for rechargeable vehicles, such as BEVs and plug-in hybrids (PHEVs). Rechargeable vehicles make up 87pc of all EVs in Brazil, according to ABVE. May was the first full month for two Chinese carmakers that recently debuted in Brazil: Omoda and Jaecoo, both subsidiaries of the Chery Auto Group, which has been in the country since 2009. The brands share dealerships, with Omoda marketing BEVs and Jaecoo aiming for the PHEV market. They sold a combined 398 units, according to Fenabrave, a private body that represents car dealerships in Brazil. Hybrid vehicle sales keep growing HEV sales continued to grow at a strong pace in May, rising by 81pc to 15,160 units over the year. Sequentially, HEV demand nudged up 1.5pc from April's 14,927 units. Brazilian consumers tend to prefer hybrids — plug-in or not — because of the lack of charging infrastructure outside of major urban centers, although PHEVs are the preferred choice because of their flexibility to alternate between a fully electric driving experience and a regular, gas-powered one. May's PHEV sales rose by 95.2pc over the year but fell 4.2pc sequentially from April because of the shift in demand towards BEVs. Total EV sales in Brazil — encompassing BEVs and HEVs — hit 22,101 units in May, a 63.3pc increase over the year and up by 12.7pc from April. EVs make up 13.2pc of Brazil's total car market. HEVs: Fiat tops BYD as best-selling brand In May, Fiat overtook BYD as the best-selling HEV brand in Brazil, marking the first time since July 2024 that the Chinese automaker has lost the top spot in the market. Fiat, which debuted in the HEV market in November 2024, quickly took advantage of its status as a traditional, well-known brand among Brazilian consumers to become a leader in the segment. It sold 4,299 hybrid units in May, besting BYD's 3,702, according to data from Fenabrave. HEV sales for the Italian automaker rose by 9pc in May from the previous month, pushing its market share to 28.3pc. BYD, meanwhile, saw its HEV sales drop by over 1,000 units in May from the prior month, as demand shifted towards its fully electric models, which posted record sales. Despite the monthly decline, BYD's HEV sales were up 137pc on the year. The company held a 24.4pc market share in May — down 7.3 percentage points from 31.7pc in April. Fiat — a Stellantis subsidiary — markets two models of mild-hybrids (MHEVs), a regular internal combustion vehicle with a small 12V or 48V non-plug-in battery that assists the gas-powered engine and improves fuel efficiency. Despite the battery not powering the wheels, MHEVs are eligible for environmental tax exemptions and other governmental benefits just like more traditional EVs. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Spanish May industrial gas use hits multi-year low

12/06/25

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12/06/25

Spanish May industrial gas use hits multi-year low

London, 12 June (Argus) — Spanish industrial gas burn last month was higher than in April but the lowest for May in at least nine years, the latest data from grid operator Enagas show. Industrial gas demand of 449 GWh/d in May edged up from 441 GWh/d in April, but remained lower than the 465 GWh/d a year earlier and was the weakest for May since at least 2016, when Enagas' public dataset begins. Before last month, the lowest industrial demand for May over the past nine years occurred in 2024, when Mibgas day-ahead reference prices averaged €32/MWh. Spanish industries last month also consumed less gas than in May 2022, when day-ahead reference prices on the Mibgas exchange averaged €77/MWh, more than double the Argus -assessed €34/MWh day-ahead average last month. Spanish industrial demand has remained lower on the year every month so far in 2025, largely because of limited gas use by refineries. Spanish refiners last month consumed 84 GWh/d, down from 100 GWh/d in May 2024, but the sector still accounted for the largest single portion of industrial demand. There was also a significant decline in demand from the food sector, which decreased by 13pc on the year, combined heat and power (CHP) plants (11pc drop) and the paper sector, which fell by 7pc on the year. Gas burn by CHPs last month held lower on the year, despite overall demand for Spanish power generation holding more or less stable and Spanish renewables and nuclear plants contributing less to the mix. That change may at least partly relate to stronger competition from combined-cycle gas turbines, which generated 4.4GW last month, 63pc higher than a year earlier. The metal, chemical and construction sectors all used marginally more gas on the year, but that change only partially offset the decline in other sectors ( see table ). By Iris Petrillo Spanish gas demand by sector GWh/d May-25 May-24 Refineries 84 98 Chemical and pharma 61 59 Construction 61 60 CHPs 51 58 Food 44 50 Other 36 39 Metals 36 35 Paper 31 33 Services 29 29 Textiles 5 5 Enagas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EPA readies new biofuel blend mandate proposal

12/06/25

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12/06/25

EPA readies new biofuel blend mandate proposal

New York, 12 June (Argus) — President Donald Trump's administration is close to releasing two regulations informing oil refiners how much biofuel they must blend into the conventional fuel supply. The two rules — proposed biofuel blend mandates for at least 2026 and most likely for 2027 as well as a separate final rule cutting cellulosic fuel mandates for last year — exited White House review on Wednesday, the last step before major regulations can be released. Previously scheduled meetings as part of the process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. EPA administrator Lee Zeldin also told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering multiple compliance years still pending. It is unclear whether the rule will provide clarity on EPA's plans for program waivers — including whether the agency will up obligations on other parties to make up for exempt small refiners — but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. RIN trading picked up and prices rose on the news as Thursday's session began. Bids and offers for 2025 ethanol D6 RINs, the most prevalent type currently trading, began the day at 96¢/RIN and 98¢/RIN, respectively. Deals were struck shortly after at 98¢/RIN and 99¢/RIN, with seller interest at one point reaching 100¢/RIN — well above a 95.5¢/RIN settle on Wednesday. Biomass-based diesel D4 RINs with concurrent vintage followed the same path with sellers holding ground as high as 107¢/RIN. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK ETS emissions fell by 11pc on the year in 2024

12/06/25

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12/06/25

UK ETS emissions fell by 11pc on the year in 2024

Seville, 12 June (Argus) — Emissions in sectors covered by the UK emissions trading scheme (ETS) declined by 11.5pc year on year in 2024, data published by the UK ETS authority show, slowing their decline slightly from the previous year. Stationary installations covered by the UK ETS emitted 76.7mn t of CO2 equivalent (CO2e), down by 12.9pc from 2023, the data show. But this was offset somewhat by a 2pc increase in aviation emissions to 8.99mn t CO2e. Overall UK ETS emissions now have declined for two consecutive years, having fallen by 12.5pc in 2023. Emissions under the scheme rose by 2.5pc in 2022, as a strong rebound in aviation activity following earlier Covid-19 restrictions outweighed declining stationary emissions. Stationary emissions have decreased in every year since the scheme launched in 2021. The majority of the decline in stationary emissions under the UK ETS last year took place in the power sector, where emissions dropped by 18.2pc to 30.6mn t CO2e. The country's last coal-fired plant, Ratcliffe-on-Soar, closed in September last year. And the share of gas-fired output in the generation mix dipped as wind, solar and biomass production and electricity imports edged higher. Industrial emissions also declined, by 8.9pc to 46.1mn t CO2e. The iron and steel sector posted the largest relative drop of 30pc to 6.54mn t CO2e. Emissions from crude extraction fell by 6.4pc to 6.0mn t CO2e, while emissions from gas extraction, manufacture and distribution activities decreased by 8.9pc to 5.3mn t CO2e. The chemicals sector emitted 2.28mn t CO2e, down by 5.2pc on the year. A total of 43 installations were marked as having surrendered fewer carbon allowances than their cumulative emissions since the launch of the UK ETS, as of 1 May. A further two installations failed to report their emissions by the deadline. "Appropriate enforcement action" will be taken against operators that fail to surrender the required allowances, the UK ETS authority said. Overall greenhouse gas emissions across the UK economy dropped by a smaller 4pc last year, data published by the government in March show. This decline also was driven principally by lower gas and coal use in the power and industry sectors, with smaller declines in transport and agriculture, not covered by the UK ETS, and an increase in buildings emissions, also out of the scheme's scope. Emissions under the EU ETS in 2024 dipped by a projected 4.5pc from a year earlier, based on preliminary data published by the European Commission in April. The UK and EU last month announced that they will "work towards" linking the two systems together. By Victoria Hatherick UK ETS emissions mn t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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