US House panel approves river infrastructure bill

Market: Agriculture, Biofuels, Chemicals, Coal, Crude oil, Fertilizers, Freight, Metals, Oil products, Petroleum coke
06/12/24

A US House of Representatives committee has approved a bipartisan bill that authorizes improvements to navigation channels by the Army Corps of Engineers (Corps) and maintenance and dredging of river and port infrastructure projects.

The House Transportation and Infrastructure Committee advanced the Water Resources Development Act (WRDA) after several months of political wrangling to integrate earlier versions of the legislation approved by the House and Senate.

The bill will head to the full House next week, said committee chairman Sam Graves (R-Missouri). This would be the sixth consecutive bipartisan WRDA bill since 2014 if passed by congress.

WRDA is a biennial bill that authorizes the Corps to continue working on projects to improve waterways, including port updates, flood protection and supply chain management.

WRDA will also "reduce cumbersome red tape", which will allow for quicker project turnarounds, Graves said. The bill authorizes processes to streamline work, he said.

The bill also adjusts the primary cost-sharing mechanism for funding for lock and dam construction and major rehabilitation projects. The US Treasury Department's general fund will pay 75pc of costs, up from 65pc, with the rest coming from the Inland Waterways Trust Fund, which is funded by a barge diesel fuel tax.

By Meghan Yoyotte

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13/06/25

Israel strikes Iran, US claims non-involvement: Update

Washington, 12 June (Argus) — Israel carried out air and missile strikes against Iran in the early hours of Friday local time, setting the stage for a major escalation in the world's largest oil producing region. Israel said it struck military targets and infrastructure associated with Iran's nuclear programme across the country. It claimed the attack was carried out in self-defense, as "Iran is closer than ever to obtaining a nuclear weapon." Iranian state media reported a first wave of strikes over the capital city, Tehran, at around 03:20 local time (23:50 GMT). Images and videos published by the state broadcaster showed residential towers that had been struck in the attack, causing numerous casualties. There were reports soon after of fire and smoke at the general command headquarters of the Islamic Revolutionary Guards Corps (IRGC) in the east of the capital, and strikes elsewhere in the country, among them key sites like the Shahid Ahmadi Roshan nuclear site in Natanz, around 200km south of the capital. Iran's civil aviation authority announced within two hours of the initial strikes that all flights had been grounded at all of the country's airports, and that the airspace over Iran will be closed "until further notice." Following the strikes on the IRGC headquarters, Iranian state media was quick to dismiss reports suggesting casualties among the country's top military officers. But news has emerged on the death of key individuals, including the IRGC's commander-in-chief Hossein Salami and Iran's army chief, Mohammad Bagheri. Iran's Supreme Leader Ayatollah Ali Khamenei said Israel should "expect a severe punishment" in the face of the early morning strikes which "struck residential centers." "Several commanders and scientists were martyred in the enemy's attacks," Khamenei said. "Their successors and colleagues will immediately resume their duties… with this crime, [Israel] has prepared a bitter and painful fate for itself, which it will definitely see." Iran's foreign ministry said that Iran "has the legal and legitimate right to respond" to the Israeli attacks "in accordance with Article 51 of the United Nations Charter," and called on the president of the UN Security Council "to take immediate action" to confront Israel's aggression "as soon as possible." Article 51 states that "nothing in the present charter shall impair the inherent right of individual or collective self-defense if an armed attack occurs against a member of the UN, until the security council has taken measures necessary to maintain international peace and security." 'Not involved' The US said it was not involved in the Israeli strikes and advised Tehran not to retaliate against US personnel in the Middle East. "Israel advised us that they believe this action was necessary for its self-defense," secretary of state Marco Rubio said, adding that the Trump administration has "taken all necessary steps to protect our forces and remain in close contact with our regional partners." Iran's defense minister Aziz Nasirzadeh just this week warned that Iran could and would target US bases in the region if conflict was "imposed on us." The US administration appeared to have at least advance warning of the imminent attack and on Wednesday ordered non-essential US personnel in Iraq and Israel to evacuate immediately. Less than a day before the Israeli attack, Trump told reporters at the White House that he advised Israel against striking Iran as it may jeopardize his diplomacy with Tehran. US and Iranian diplomats were scheduled to meet on Sunday for another round of talks on a new deal to curb Tehran's nuclear program. As long as the US and Iran are negotiating, "I don't want [Israel] going in because, I mean, that would blow it," Trump said. "Might help it actually but it also could blow it." Crude oil futures surged in early Asian trading following news of the attacks. The front-month August Ice Brent contract rose by as much as 13pc to a high of $78.50/bl in early trading. July WTI futures on Nymex traded as high as $77.62/bl. By Haik Gugarats and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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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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Borealis not reviewing assets in Europe: CEO

12/06/25

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12/06/25

Borealis not reviewing assets in Europe: CEO

London, 12 June (Argus) — Austria-based petrochemicals producer Borealis is not conducting any asset reviews in Europe despite prolonged weakness in the region's polyethylene (PE) and polypropylene (PP) markets, chief executive Stefan Doboczky told Argus . "It's not that we would never look into something," Doboczky said. But "none of our major installations [in Europe] I would say are being a real problem, they are all contributing [to profitability]." Doboczky acknowledged that "Europe will never be the cost leader". But "there are strong differences between the economics of crackers and the polyolefin systems", he said. "If you look at our more coastal setups, we are much more flexible than certain steam crackers would be inland." Borealis' coastal steam crackers in Porvoo, Finland, and in Stenungsund, Sweden, have greater flexibility to run lighter feedstocks and optimise product yields. Their location also allows for easier feedstock procurement via vessel, Doboczky said. Borealis will continue to bring polyolefins into Europe from its sister plants in the Middle East and North America, which have advantageous positions on feedstock and production costs. Doboczky's comments follow Netherlands-based LyondellBasell's announcement last week that it plans to divest four European olefins and polyolefins plants to focus on "economically sustainable sites". The European petrochemicals sector has faced mounting pressure from weak demand and high costs, prompting several producers to review or close assets. Saudi Arabia's Sabic is also understood to be assessing its European footprint, although details remain limited. Borealis, by contrast, is pursuing a differentiation strategy focused on downstream expansion. Last week, it announced a €100mn ($114mn) investment to triple PP foam production capacity at its Burghausen site in Germany. The firm has 650,000 t/yr of PP production capacity at that site. "We are very much focused on investing in smaller units, in the €50mn-100mn space to gain a strong share in a particular niche," Doboczky said. This is in addition to around €2bn of overall capital expenditure already committed in Europe for new projects. "Borealis has no alternative to this [polyolefins] business," Doboczky said, adding that the company will continue to focus on specialty, high-end applications rather than volume-driven segments. It also has a notable presence in the downstream compounding sector, which uses part of its PE and PP resin output. Demand outlook Borealis expects 2025 demand to be broadly in line with 2023-24 levels, although it could vary by grade and segment. "We see too much volatility at the moment and I think we need to see how the world looks like after 9 July," Doboczky said, referring to the 90-day tariff pause on US imports. "The general sentiment that PP is even more difficult, I would subscribe to that." PP demand has been hit harder than PE, given its exposure to big-ticket consumer goods and the automotive segment, both of which have been affected by cost-of-living pressures. Construction demand is also under pressure due to economic headwinds and high financing costs. For the time being, Borealis continues to see offtake from the automotive segment within its expected range, owing to a larger share of electric vehicle production, which uses a higher proportion of PP to offset battery weight. The company is also targeting growth in rigid and flexible packaging through increased innovation. Project updates Earlier this year, OMV and Adnoc agreed to merge Borealis and Borouge into a new entity, Borouge Group International, which will be headquartered in Vienna and listed on the Abu Dhabi Securities Exchange. The move coincided with the acquisition of Canada-based Nova Chemicals by the new entity. Borealis is constructing a 750,000 t/yr propane dehydrogenation (PDH) plant in Kallo, Belgium, which is scheduled to come online in the second quarter of 2026. The Borouge 4 project in Abu Dhabi is on track to start up ethylene and PE production in late 2025 or early 2026, Doboczky said. By Sam Hashmi 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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