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Floods halt firms' operations in Brazil's south

  • Market: Agriculture, Metals, Petrochemicals
  • 06/05/24

Several Brazilian companies have suspended operations in the southern state of Rio Grande do Sul because of heavy rainfall that has caused severe floods and infrastructure damage.

Flooding from the record rains has left at least 83 dead with 111 people missing, according to the state government. More than 23,000 people have been forced from of their homes amid widespread damage, including washed out bridges and roads across several cities.

The dam of the 100MW 14 de Julho hydroelectric plant, on the Antas River, ruptured last week under the heavy rains. Power generation company Companhia Energetica Rio das Antas, which runs the plant, implemented an emergency evacuation plan on 1 May.

  • Brazilian steelmaker Gerdau that it suspended its operations in two mills at the state until it can ensure "people's protection and safety." The company did not disclose the produced volume of steel at those two mills.
  • Logistics company Rumo partially interrupted operations and said that "damages to assets are still being properly measured".
  • Petrochemical giant Braskem shut down its facilities at the Triunfo petrochemical complex as a preventive measure because of "extreme weather events" in the state, it said on 3 May. The company added there was no expected date to resume activities there. Braskem operates eight industrial units in Rio Grande do Sul that make 5mn metric tonnes/yr of basic petrochemicals, polyethylene and polypropylene, according to its website.

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08/07/25

Immigration raids pressure south Texas scrap flows

Immigration raids pressure south Texas scrap flows

Houston, 8 July (Argus) — South Texas ferrous scrap yards are facing inflow headwinds as increased efforts by US immigration officials to detain and deport non-citizens affect peddler traffic and the labor force. Several market participants speaking to Argus on condition of anonymity have reported a steep decrease in scrap inflows along the US-Mexico border in Texas since the start of President Donald Trump's second term in mid-January due to raids by US Immigration and Customs Enforcement (ICE) agents. Sources surveyed by Argus estimated a 25-50pc reduction in scrap being sold to yards in south Texas as a result of the raids, but they struggled to provide a more specific volume of scrap not delivered. Peddler traffic — scrap sold to yards by the public — accounts for a considerable percentage of material acquired by yards in the region, a market participant said. Sources said that many peddlers, as well as some workers at yards, are non-citizens and risk deportation if detained by ICE. The reduction in scrap flows is much larger than what would be seen from peddlers and yard workers who have been detained by ICE or the US Customs and Border Protection agency, they said, and is likely the result of a wider pull back from peddlers, nervous over the risk detention and deportation. Several yards reliant on peddler traffic or undocumented labor have shut in recent weeks, sources familiar with the matter said. ICE has been raiding communities along the border since early in the year when President Donald Trump started his second term. The recently-passed US budget bill allocated $45bn to, in part, hiring "thousands" of new ICE and Border Protection agents. It is unclear how much scrap is sold to US scrap yards by sellers who lack US citizenship, but continued pressure on those sellers and undocumented workers could cause supply tightness and labor shortages in south Texas yards. The monthly Texas ferrous scrap trade is expected to settle today, with several mills bidding all grades flat from June settlements. By Marialuisa Rincon Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Tokyo unlikely to yield on car levy despite US pressure


08/07/25
News
08/07/25

Tokyo unlikely to yield on car levy despite US pressure

Tokyo, 8 July (Argus) — The Japanese government is unlikely to offer concessions to the US for an automobile deal in stalled trade talks between the countries, even after Washington announced plans to raise tariffs on Japanese imports. Each government has its own interests to defend, the country's minister for trade and industry (Meti) Yoji Muto said on 8 July, reiterating that the automobile sector is a key industry for the Japanese economy and is vital to national interests. Muto reiterated Tokyo's intention to pursue a resolution through negotiations, but without compromising its core economic priorities. This suggests that there is little space for Tokyo to accept auto tariffs imposed by the US. This comes after US president Donald Trump announced plans to impose additional tariffs of 25pc on all imports from Japan from 1 August, slightly higher than the initial rate of 24pc set in April. Trump threatened to impose an even higher levy if Tokyo moves to retaliate against the measure. "We have had years to discuss our trading relationship with Japan, and have concluded that we must move away from these long-term, and very persistent, trade deficits engendered by Japan's tariff, and non-tariff policies and trade barriers," Trump said in his official letter to the Japanese government. "Our relationship has been, unfortunately, far from reciprocal." Tokyo and Washington have held seven trade talks on the US tariff since mid-April without reaching an agreement. Japan was initially seen as a frontrunner among other US trading partners in the negotiation, but progress has stalled partly because of disagreements over the auto sector. The Trump administration has long expressed strong dissatisfaction against the imbalance in US-Japan car trade. Japan exported around 1.3mn automobile units to the US market in 2024, and only purchased 14,724 units of US vehicles during the same period, according to Japanese customs and industry group the Japan Automobile Manufacturers Association, respectively. Tokyo has declined to disclose the details of the ongoing negotiations, but the country's prime minister Shigeru Ishiba in mid-June reiterated that the automobile sector is vital to Japan's national interests, underscoring the car sector as a key sticking point in the trade talks. By Yusuke Maekawa and Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil's Mato Grosso estimates corn output at 54mn t


07/07/25
News
07/07/25

Brazil's Mato Grosso estimates corn output at 54mn t

Sao Paulo, 7 July (Argus) — Brazilian central-western Mato Grosso state will produce nearly 54mn metric tonnes (t) of corn in its 2024-25 season, a 7.2pc rise from the prior month's forecast. That is also 14.5pc above the 47.2mn t produced in the 2023-24 crop, according to the state's institute of agricultural economics Imea. The productivity outlook increased to 126.3 60kg bags/hectare (ha) from 117.7 bags/ha in June's estimate. That is 9.2pc above the 115.6 bags/ha in the 2023-24 crop. That would be a record for the state and was revised upwards mainly because of rainfalls that favored crop conditions this cycle, even for those areas where planting took place after the ideal planting window. The expected planted area remained stable from June's outlook at 7.13mn ha, a 4.9pc hike from the prior cycle. Cotton lint Imea increased its outlook for 2024-25 cotton lint production to 2.79mn t, slightly above the 2.76mn t in June's estimate. That is a 7.4pc hike from 2023-24 production. The planted area increased by 1.2pc on the month to 1.5mn ha, almost in line with the previous month's outlook. The area is 4.2pc ahead of the 2023-24 season. Yield estimates remained at 297 15kg bags/ha. Soybeans Mato Grosso's 2025-26 soybean crop outlook remained at 47.2mn t, stable for the third consecutive month but down by 7.3pc from 2024-25. Soybean yields are expected to reach 60.45 60kg bags/ha, flat from June's outlook and an 8.8pc drop from the 66.29 bags/ha in the 2024-25 season. The expected planted area remained at 13mn ha, 1.7pc above the 12.8mn ha in 2024-25. The current soybean yield outlook is based on the average of the last three cycles and should remain stable until planting — which begins in mid-September — progresses. By Sofia Zizza Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Argentina weather continues to aid wheat, corn


04/07/25
News
04/07/25

Argentina weather continues to aid wheat, corn

Sao Paulo, 4 July (Argus) — Cool, dry weather that firmed up sodden fields in some areas aided Argentinian farmers' work over the past week, allowing wheat planting and corn harvesting to advance and permitting the soybean harvest to finish. Wheat planting progressed by 5.5 percentage points in the week through 2 July, reaching 78.2pc complete, according to the Buenos Aires grain exchange Bage. Though rains in the second half of June slowed planting in some areas, windy weather and a lack of precipitation in the last seven days improved field conditions in areas that just a week earlier were still waterlogged. Heavy downpours in the second half of May flooded fields in northern and eastern Buenos Aires province . The province is Argentina's biggest producer of wheat, soybeans and barley, and the soaked fields and rural roads left behind by the storms complicated the work of farm equipment and the transportation of harvested soybeans and corn. Wheat planting in Argentina's so-called agricultural core, composed of some of the most fertile parts of the provinces of Buenos Aires, Santa Fe and Cordoba, reached 90pc finished, the Rosario board of trade RBT said. The recent cold weather slowed the emergence of planted wheat, but expectations are still for high yields because of soil moisture levels in many areas, RBT said. As long as the weather remains favorable and there are no crop diseases or frosts, the outlook for production is favorable. Corn harvesting The corn harvest reached 61.7pc finished as of 2 July, an advance of 6.4 percentage points from a week earlier, Bage said. Sodden fields continued to slow harvesting in some parts of Buenos Aires province, but yields have been good, with a national average of 7.6 metric tonnes/hectare (t/ha). Bage maintained its estimate for production of 49mn t of corn. Yields have been better than expected earlier this season, after a drought in late 2024 and early 2025, RBT said. An infestation of leafhoppers that slashed yields last year added to concerns about yields this year. But precipitation starting in mid-February and effective measures this year to control the spread of leafhoppers helped boost yields for late-planted corn, according to RBT. Early corn in the Buenos Aires province produced yields of only about 6.5-7.5 t/ha, while late corn in the same region had yields of 7.5-10.5 t/ha. Soybean harvest nearly done Argentinian farmers virtually finished their soybean harvesting work in the week through 2 July, with only a few small areas remaining unharvested, Bage said. The average yield at the national level was the second highest in the past five cycles, at 3 t/ha, and Bage maintained its estimate for production of 50.3mn t. Barley planting progress is uneven across the Buenos Aires province, according to the economy ministry. The province is by far the country's biggest producer of the grain. In areas where planting is almost finished, the crop is already emerging in good conditions, though some parts of the province will need more rain to sustain growth. Intense cold has slowed emergence in other parts of the province, while muddy fields have delayed planting in others, the ministry said. The cold weather, frosts and even snow in some spots in the province have so far caused no damage. By Jeffrey T. Lewis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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NGOs pitch Amazon preservation funding to Cop 30


04/07/25
News
04/07/25

NGOs pitch Amazon preservation funding to Cop 30

Sao Paulo, 4 July (Argus) — Non-governmental organizations (NGOs) in Brazil's northern Amazon region set up a plan to draw investments to conservation, restoration and sustainable development in the biome. The plan — submitted to the UN Cop 30 climate summits presidency on 4 July — suggests redirecting subsidies from high-greenhouse gas emission activities to sustainable projects and promoting environmental services, as well as fighting against illegal economic practices such as animal trafficking and property speculation of public lands, according to the NGOs. The Amazon gathered around $5.8bn in investments between 2013-22, while it is worth at least $317bn/yr in ecosystem services, such as climate regulation — vital for agriculture and hydroelectric power generation — and biodiversity, according to the World Bank. The institution also estimated that $7bn would be necessary to preserve the biome against deforestation and ward it off from the tipping point, when it would suffer permanent damage like desertification and severe changes in the rainfall pattern. Main financial resources for the plan may come from the Tropical Forest Forever Facility (TFFF) initiative, which Brazil launched in 2023 to raise funds to protect tropical forests and combat deforestation, the NGOs said. Considering the program's annual raising of $5bn, the groups expect that $2bn of it will fund the Amazon forest preservation. Another proposal includes the creation of a Global Declaration for Amazon to engage countries enrolled in the UN Framework Convention on Climate Change (UNFCCC) in contributing to strengthen the biome against climate change. Brazil will host UN Cop 30 climate summit in November, when it expects to deliver a roadmap to increase global climate finance to $1.3 trillion/yr. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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