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Indonesia’s Huafei to cut MHP output on sulphur costs
Indonesia’s Huafei to cut MHP output on sulphur costs
Singapore, 29 April (Argus) — China's major battery materials producer Huayou will place half of its mixed hydroxide precipitate (MHP) capacity at its Indonesian subsidiary, Huafei Nickel Cobalt, into temporary care and maintenance from 1 May, citing elevated sulphur costs and prolonged high operating rates at the facilities, the company said on 28 April. The move is described as a short-term response to elevated input costs and deferred maintenance requirements following sustained high utilisation. The company does not expect the temporary suspension to adversely affect its long-term development but did not disclose a timeline for operations to resume. Sulphur prices have risen significantly because of the ongoing US-Iran war, as nearly half of global seaborne sulphur trade transits the strait of Hormuz. Argus -assessed granular sulphur cfr Indonesia prices at $948/t on a midpoint basis on 23 April, up by $434/t, or 84pc, from $514/t cfr on 26 February, before the outbreak of the war. Sulphur is now estimated to account for 35-40pc of high pressure acid leaching (HPAL) operating costs, up from a more typical 25pc. Indonesia is heavily exposed to the supply shock, having sourced around 75pc of its 5.34mn t of sulphur imports from the Middle East last year. The temporary suspension has supported MHP market sentiment and prices. Offers for MHP rose to 95pc of London Metal Exchange (LME) nickel prices for nickel payable on 28 April, from 91pc in March, although no deals have yet been concluded at this level. Huafei secured permits to import sulphuric acid from Jakarta in April, although approved volumes have not been disclosed. Huayou is also seeking to reduce its exposure to the sulphur market by accelerating process upgrades and expanding sulphur sourcing channels. The company aims to address the issue through the construction of acid production projects using pyrite and phosphogypsum, which are expected to come on stream by the end of 2026. Huayou has not specified which subsidiaries will deploy the technology. Huafei began production at Weda Bay in North Maluku province in 2023 and has a capacity of 120,000 t/yr of nickel equivalent in the form of MHP. Huafei is Huayou's second MHP project in Indonesia, following Huayue in Morowali, Sulawesi province, which started production in 2021 and has 60,000 t/yr of nickel-equivalent capacity in the form of MHP. Output at the two projects has exceeded their nameplate capacities. Huayou's MHP shipments reached 236,500 t in 2025, up by 30pc year-on-year, while total nickel production across all products rose by 59pc on the year to 292,500t in nickel metal equivalent. Huayou's KNI MHP project remains under construction. The project is a joint venture between Huayou, Brazilian multi-metals mining group Vale and US automaker Ford, with planned capacity of 120,000 t/yr in nickel metal equivalent and start-up scheduled for December. By Deon Ngee, Sheih Li Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
General Motors pencils in $500mn tariff refund
General Motors pencils in $500mn tariff refund
Pittsburgh, 28 April (Argus) — US automaker General Motors (GM) expects to receive a $500mn refund for a tranche of tariffs annulled by the US Supreme Court this year. The refund will lower GM's 2026 tariff bill from $3bn-4bn to $2.5bn-3.5bn, the Detroit-based automaker said in its first-quarter earnings call on 28 April. While some of the tariffs imposed by US president Donald Trump's International Emergency Economic Powers Act (IEEPA) have been struck down, automobile and metals tariffs remain in place and account for GM's considerable expected tariff bill. The US-Israel conflict with Iran is also a major factor affecting costs, GM chief executive Mary Barra said during Tuesday's earnings call. Prices for energy, metals and freight have gone up because of the war, adding about $500mn in expected costs for GM this year, Barra said. However, rising gas prices as a result of the war have not yet had an impact on demand for full-size pickup trucks and other internal combustion engine vehicles, GM said. But the longer the war goes on, the more likely demand wanes for large gas-powered trucks, the company said. GM's total vehicle sales in the first quarter fell to 1.3mn units, down by 11pc compared with the first three months of 2025. US sales fell by 10pc to 626,000 vehicles in the quarter compared with a year earlier. GM attributed part of the US sales decline to maintenance downtime at one of its full-size pickup plants, as well as to lower imports into the US of GM vehicles assembled in South Korea. GM reported a $2.6bn profit in the first quarter, down from $2.8bn in the first quarter of 2025. By James Marshall Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Mexico trade balance swings to $6bn surplus in March
Mexico trade balance swings to $6bn surplus in March
Mexico City, 27 April (Argus) — Mexico's trade balance in goods swung to a hefty $5.93bn surplus in March, amid a strong pick-up in manufacturing exports. The balance, reported by statistics agency Inegi, swung from the $463mn deficit in February after narrowing from a $6.48bn deficit in January. The March surplus also far surpassed the $1.03bn surplus forecast by Mexican bank Banorte. The swing to a surplus in March was led by widening of the non-oil trade surplus to US$8.32bn in March from US$1.55bn the previous month. Meanwhile, Mexico's oil-trade deficit expanded only slightly to $2.39bn in March from $2.01bn the previous month despite volatility in global oil prices hitting markets caused by the conflict in the Middle East. Total exports rose to $70.7bn in March from $56.9bn in February, with oil-related exports up at $1.71bn from $1.47bn. Crude exports increased to 495,000 b/d in March from 585,000 b/d in February, well below the 827,000 b/d recorded in March 2025. Non-oil exports rose to $69bn in March from $55.36bn the prior month. Manufacturing shipments increased to $64.7bn in March from $51.8bn in February, with automotive up to $17.4bn from $13.6bn in February. Imports totaled $64.8bn in March compared with $57.3bn in the prior month, with oil imports at $4.1bn in March compared with $3.5bn the prior month and non-oil imports at $60.7bn, up from $53.8bn the prior month. Mexican bank Banco Base suggests the outlook has worsened due to comments by economy minister Marcelo Ebrard during meetings with Mexican president Claudia Sheinbaum and US trade representative Jamieson Greer. Ebrard indicated the review's goal is to reduce tariffs, not eliminate them, noting "a world without tariffs is unlikely to return." Banco Base considers this bad news for several reasons: Mexico enters the renegotiation with a weak stance, more willing to concede to the Trump administration than to secure favorable terms; and continued tariffs could be a bargaining chip to avoid addressing other US demands related to the rule of law and the opening of strategic sectors. In addition, said Banco Base, "Continued tariffs could lead to a sustained decline in affected sectors like steel and automotive, whose exports have fallen due to sectoral tariffs." Banco Base also mentions stricter rules of origin, which would further harm the automotive and steel industries. These measures would remove incentives for foreign companies in Mexico, slowing foreign direct investment growth. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
North Japan earthquake spares energy facilities
North Japan earthquake spares energy facilities
Tokyo, 27 April (Argus) — Domestic energy-related facilities did not take any damage after a magnitude 6.2 earthquake struck southern Tokachi in Hokkaido, Japan, at around 05:23 local time (20:23 GMT) on 27 April, industry sources told Argus . There is no risk of a tsunami, the Japan Meteorological Agency said. Japanese prime Minister Sanae Takaichi said at a House of Councillors budget committee meeting on the morning of 27 April that she did not receive any reports of casualties or damage so far following the earthquake. The earthquake did not affect power generation facilities, including the Tomari nuclear power plant, a representative of Hokkaido Electric Power Network, the regional power grid operator, told Argus, adding that there were no power outages. Japanese refiner Idemitsu Kosan operates a 140,000 b/d refinery on the southern coast of Hokkaido. But the refinery was not affected by the earthquake and remains operational, Idemitsu said. There has not been any damage at Nippoon Steel's Muroran steelworks in Muroran, Hokkaido, a representative of the company said. A magnitude 7.7 earthquake also struck northeastern Japan on 20 April, but the Japan Meteorological Agency said there is no direct link between that quake and the latest one. By Fumito Nagase, Motoko Hasegawa, and Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.