Gasoline, diesel cars continue losing EU market share
Diesel and gasoline-powered cars saw a rapid loss of market share in the EU in the first quarter as consumers increasingly opt for hybrid electric vehicles (EVs) and electrically-chargeable cars.
Figures from industry association the European Automobile Manufacturers Association (ACEA) show gasoline car sales in the EU fell by 16.9pc on the year to 1.1mn in January-March, driving their share of the passenger car market down to 42.2pc from 52.3pc in the same period of 2020. Among the countries registering strong declines were Germany, Spain, the Netherlands and Italy. France was a notable exception among the bloc's major economies. Similarly, diesel car sales in the EU dropped by 20.1pc on the year to just under 594,000, representing a market share of 23.2pc, compared with 29.9pc in January-March 2020. ACEA noted double-digit declines in most EU countries including Germany, Spain and France.
In contrast, most types of alternatively powered vehicles increased market share. Sales of battery EVs in the EU were up by 59.1pc from a year earlier to over 146,000 in the first quarter, with "demand still benefiting from government stimuli for zero-emission vehicles", ACEA said. Sales of plug-in hybrids reached more than 208,000, up by 175pc compared January-March 2020, with exceptional growth in Italy helping drive the sharp increase. And sales of hybrid EVs exceeded 470,000, a 101.6pc increase from a year earlier.
Hybrids, plug-in hybrids and battery EVs took a combined market share of 32.2pc in January-March.
Meanwhile, demand for natural gas vehicles in the EU declined by 10.1pc on the year to 14,300 during the first quarter, but sales of LPG-fuelled cars almost doubled to reach just over 46,000, "boosted by remarkable gains in France", ACEA said. France is now the second largest EU market for LPG cars, while Italy accounted for more than half of total LPG sales, it said.
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Mitsui makes delayed exit from Paiton power project
Mitsui makes delayed exit from Paiton power project
Tokyo, 1 May (Argus) — Japanese trading house Mitsui completed on 30 April the ¥109bn ($690mn) sale of its stake in Indonesia's 2,045MW Paiton coal-fired power plant in east Java following multiple delays. Mitsui originally tried to complete its exit by the end of March 2022 . It said the procedures with Paiton's offtaker Indonesian state-owned power firm Persero took more time than expected without providing further details. Japanese thermal power producer Jera withdrew from Paiton by selling its 14pc share in 2021. Mitsui sold its 45.515pc share in Paiton Energy, as well as a 45.515pc stake in Netherlands-based subsidiary Minejesa Capital and a 65pc stake in Singapore-based IPM Asia that are related companies of the Paiton project. Mistui sold the stakes to RH International (RHIS), which is a Singapore-based subsidiary of Thai power producer Ratch, and Indonesian power company Medco Daya Abadi Lestari's subsidiary Medco Daya Energi Sentosa (MDES). Paiton Energy is now owned by RHIS, MDES and Qatar-based company Nebras Power. Mitsui did not disclose their ownership ratios. Paiton consists of the 615MW No.7, 615MW No.8 and the 815MW No.3 units, which sell electricity to Persero through an unspecified long-term contract. Mitsui now holds 9.6GW of power capacity assets globally, with 8pc being coal-fired projects. The exit from Paiton cut its coal-fired ratio by 8 percentage points, while raising its renewable ratio by 3 percentage points to 32pc. Growing global pressure against coal-fired power generation likely prompted Mitsui to exit Paiton. Energy ministers from G7 countries this week pledged to accelerate "efforts towards the phase-out of unabated coal power generation". By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
New US rule may let some shippers swap railroads
New US rule may let some shippers swap railroads
Washington, 30 April (Argus) — US rail regulators today issued a final rule designed to help customers switch railroads in cases of poor rail service, but it is already drawing mixed reviews. Reciprocal switching, which allows freight shippers or receivers captive to a single railroad to access to an alternate carrier, has been allowed under US Surface Transportation Board (STB) rules. But shippers had not used existing STB rules to petition for reciprocal switching in 35 years, prompting regulators to revise rules to encourage shippers to pursue switching while helping resolve service problems. "The rule adopted today has broken new ground in the effort to provide competitive options in an extraordinarily consolidated rail industry," said outgoing STB chairman Martin Oberman. The five-person board unanimously approved a rule that would allow the board to order a reciprocal switching agreement if a facility's rail service falls below specified levels. Orders would be for 3-5 years. "Given the repeated episodes of severe service deterioration in recent years, and the continuing impediments to robust and consistent rail service despite the recent improvements accomplished by Class I carriers, the board has chosen to focus on making reciprocal switching available to shippers who have suffered service problems over an extended period of time," Oberman said today. STB commissioner Robert Primus voted to approve the rule, but also said it did not go far enough. The rule adopted today is "unlikely to accomplish what the board set out to do" since it does not cover freight moving under contract, he said. "I am voting for the final rule because something is better than nothing," Primus said. But he said the rule also does nothing to address competition in the rail industry. The Association of American Railroads (AAR) is reviewing the 154-page final rule, but carriers have been historically opposed to reciprocal switching proposals. "Railroads have been clear about the risks of expanded switching and the resulting slippery slope toward unjustified market intervention," AAR said. But the trade group was pleased that STB rejected "previous proposals that amounted to open access," which is a broad term for proposals that call for railroads to allow other carriers to operate over their tracks. The American Short Line and Regional Railroad Association declined to comment but has indicated it does not expect the rule to have an appreciable impact on shortline traffic, service or operations. Today's rule has drawn mixed reactions from some shipper groups. The National Industrial Transportation League (NITL), which filed its own reciprocal switching proposal in 2011, said it was encouraged by the collection of service metrics required under the rule. But "it is disheartened by its narrow scope as it does not appear to apply to the vast majority of freight rail traffic that moves under contracts or is subject to commodity exemptions," said NITL executive director Nancy O'Liddy, noting it was a departure from the group's original petition which sought switching as a way to facilitate railroad economic competitiveness. The Chlorine Institute said, in its initial analysis, that it does not "see significant benefit for our shipper members since it excludes contract traffic which covers the vast majority of chlorine and other relevant chemical shipments." By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Oversupply and fragmentation challenge steel market
Oversupply and fragmentation challenge steel market
London, 30 April (Argus) — Participants in the Turkish and European long steel markets at a major industry event this week anticipated a difficult remainder of 2024, expecting demand to be generally supplied by local capacities. With the Chinese Metallurgical Industry Institute forecasting a 1.7pc drop in Chinese steel demand in 2024 and the country's steel output expected to remain stable, Chinese exports are likely to continue putting pressure on global rebar prices. China's overall steel exports this year so far are on course to exceed the 91.2mn t shipped in 2023. Traders were concerned over the Chinese real estate sector, which, along with infrastructure construction, drives the bulk of Chinese steel demand but has been plagued by a mismatch between housing demand and supply in recent years. Markets outside of China are also likely to be well-supplied for the rest of the year or longer, with a weak construction outlook in Europe and with steel capacity on an upward trend in India and southeast Asia. Government investment in construction projects is likely to drive Indian steel demand to at least 190mn t by 2030, said Somanath Tripathy of the Steel Authority of India Limited (SAIL). But in the near term Indian demand growth has been sluggish while output has increased, with steelmakers Tata and JSW both reaching record steel output in the financial year of 2023-2024. Meanwhile, participants had weak expectations for the European and Turkish rebar markets for the rest of the year. Expectations of a recovery in the European steel sector have largely been pinned on the likelihood the European Central Bank will reduce interest rates at some point in the second half of the year. But a German trader noted while this move would lend some support, high interest rates are far from being the only challenge for the sector. The EU construction sector faces increasingly high costs, partly caused by sustainability requirements, participants noted, slowing investment and weighing on property demand by pushing up prices. The combination of high interest rates and inflation in Turkey, as well as dwindling export options, means several Turkish steel mills are currently running at near 50pc of capacity. Turkish rebar exporters face stiff competition in most export markets from Chinese suppliers, whose fob prices are currently around $70/t lower than Turkey, as well as from north African producers. The challenge for Turkish exporters is structural, with the business model of importing scrap and exporting steel no longer as viable due to higher scrap demand from other regions as well as the significantly lower energy costs of north African and Middle Eastern producers. Some market participants noted in this context, the introduction of the European Carbon Border Adjustment Mechanism (CBAM) could favour Turkish EAF mills in the long run, who are no longer competitive in terms of price in most markets, but whose use of scrap versus direct reduced iron (DRI) makes their production less carbon-intensive than other EAF-based producers in the region. Turkish producers are working to make sure they will be compatible with EU environmental requirements, a Turkish mill source said. But government support for these efforts has been lacking, he added. Overall, protectionist measures have significantly harmed Turkey's export options, as has the outbreak of conflicts and tensions in the region over the past two years. Some Turkish mills have lost up to half of their regular export sales as a result of the halt of exports to Israel and a slowdown in sales to Yemen as a result of the conflict in Gaza and Houthi vessel attacks. Until European prices pick up significantly and north Africa is selling at capacity, Turkish long steel exports will not be competitive in the near future, a trader noted. By Brendan Kjellberg-Motton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Climate change to heavily disrupt mining: PwC
Climate change to heavily disrupt mining: PwC
London, 30 April (Argus) — More than 70pc of the world's production of copper, cobalt and lithium could face significant or high drought risks by 2050, up from less than 10pc currently and posing a significant challenge to future supply growth, according to accounting firm PwC. Under a low-emissions scenario — which imagines global carbon emissions rapidly decreasing — more than 70pc of cobalt and lithium production and around 60pc of the world's bauxite and iron production will be at risk by 2050, according to PwC's 2024 Climate Risks to Nine Key Commodities Report . More than half of the world's copper production will be disrupted by 2050 in a low-emissions scenario and over 70pc in a high-emissions scenario. PwC warns that unless commodity producers and buyers take preventive action now, their operations are likely to be increasingly disrupted. "Climate change is already fracturing the stability of the natural world, and it will increasingly fracture the stability of global supply chains unless adaptive measures are taken," said global sustainability leader Will Jackson-Moore. Some companies are responding to the growing drought risk by investing in water management systems to prevent wastage. Others are considering infrastructure adaptations, such as building elevated storage facilities in flood-prone areas. Several mining companies in Chile have invested in desalination plants, the report notes. According to PwC's 2024 Annual Global CEO Survey , 47pc of chief executives have taken proactive measures to safeguard their workforces and physical assets from climate change. To continue building resilience and adapting to climate risks, businesses must assess impacts, work with suppliers and communities, establish a climate strategy, make transparent disclosures, leverage adaptive products and services and participate in multi-stakeholder efforts, the latest report concludes. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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