US Steel to idle Ohio, Texas tubular mills
Integrated steelmaker US Steel will idle its tubular mills in Ohio and Texas by the end of May in response to the collapse in oil prices.
The Lone Star, Texas, mill can produce 400,000 short tons (st)/yr of electric-resistance welded (ERW) tubular products for the oil and gas industry. The mill reopened last year due to growing demand after being idled during the 2014-16 energy downturn.
The Lorain, Ohio, mill can produce 380,000 st/yr of oil country tubular goods (OCTG), casing pipe, and line pipe.
US Steel is proceeding with installation of a new 1.6mn st/yr electric arc furnace (EAF) at its Fairfield works near Birmingham, Alabama, which will supply material to its seamless steel tubular operations, which have a production capacity of 750,000st/yr.
The idlings come as OCTG steelmakers in the US have been hammered by a collapse in oil prices, brought on in recent weeks by a price war between global oil producers Russia and Saudi Arabia.
US oil prices fell by 61pc in the last month to $21.29/bl yesterday as neither Russia nor Saudi Arabia backed off from their disagreement over global oil supply. Saudi Arabia has flooded the market with cheap crude, pushing global prices downward.
The count of active US oil and gas drilling rigs has fallen by 2pc in the last month to 772, and is down by 24pc compared to a year ago.
Last week tubular steelmaker Tenaris said it was curtailing much of its US production because of falling oil prices, including idling its 600,000 st/yr electric arc furnace (EAF) billet mill in Koppel, Pennsylvania, and its 496,000 st/yr seamless pipe mill in Ambridge, Pennsylvania, on 31 March.
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US restricts future oil leasing in NPR-A
US restricts future oil leasing in NPR-A
Washington, 19 April (Argus) — President Joe Biden's administration today finalized a rule to prohibit future oil leasing on nearly half of the 23mn-acre National Petroleum Reserve in Alaska (NPR-A), adding to a flurry of recent environmental regulations that have frustrated oil interests. The rule will make it harder for oil producers to expand beyond development in the northeast section of NPR-A, where ConocoPhillips is developing its $8bn Willow drilling project. The rule outright bans new leasing on 10.6mn acres of the reserve, including around the ecologically sensitive Teshekpuk lake "special area" that is believed to hold large volumes of crude. The rule also restricts future leasing on an additional 2mn acres in the NPR-A that includes other special areas. "These natural wonders demand our protection," Biden said. "I am proud that my administration is taking action to conserve more than 13mn acres in the western Arctic." The US Bureau of Land Management (BLM) said it received more than 100,000 comments on its proposal to limit oil leasing in the NPR-A, a federal area established in 1923 where commercial oil production began only in 2015. The restrictions came after former president Donald Trump tried to increase drilling in the NPR-A through a plan to allow leasing on an additional 7mn acres, including around Teshekpuk lake. With the rule complete, BLM said it plans to solicit input on whether to revise the boundaries of the "special areas" and identify additional lands in NPR-A that could qualify for protection. Biden administration officials previously described the rule as creating a "one-way ratchet" for conservation that a new administration could not reverse. The rule will not affect existing oil and gas leases in NPR-A, including Biden's decision in 2023 to approve the Willow project, which is expected to reach a peak output of 180,000 b/d and that environmentalists strongly opposed. BLM said the 10.6mn acres of NPR-A that it closed to leasing has only medium or low potential for oil and gas resources. Environmentalists cheered the new NPR-A restrictions, with Sierra Club executive director Ben Jealous calling it a "major victory" for the arctic. But oil industry groups say the restrictions are a step in the wrong direction, adding to other recent regulations they say will make it hard to produce energy on federal land. BLM recently finalized more stringent bonding requirements for onshore and offshore land, in addition to finalizing a plan to lease federal land for conservation. "This misguided rule from the Biden administration sharply limits future oil and natural gas development in Alaska's National Petroleum Reserve, a region explicitly intended by Congress to bolster America's energy security," American Petroleum Institute senior vice president of regulatory affairs Dustin Meyer said. The administration has been working to finish regulations in recent weeks ahead of an upcoming deadline where any rule could be subject to "disapproval" in 2025 under the Congressional Review Act. The exact deadline remains in flux because it depends on how long the US Congress stays in session, but it could arrive as early as next month. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Limited strike on Iran opens door to de-escalation
Limited strike on Iran opens door to de-escalation
Dubai, 19 April (Argus) — A limited aerial assault on the central Iranian city of Isfahan earlier today could mark the beginning of the end of the latest escalation in the Mideast Gulf. Iranian state media reported in the early hours of Friday, 19 April, several explosions over Isfahan at 04:00 local time. These were later confirmed by the Iranian military to have been the result of air defences bringing down three small drones over the city. Isfahan is the home to a number of strategically important facilities, among them the Shekari airbase that houses some of Iran's F-14 Tomcat fighter planes and SU-24 Sukhoi bombers, and a uranium conversion facility. There was "no impact or damage" to either, according to Iranian army commander-in-chief Seyyed Abdolrahim Mousavi. Other Iranian officials also sought to downplay the strike. Hossein Dalirian, spokesman for Iran's National Center for Cyberspace, said on social media platform X that it was so minor "it would not be considered an attack anywhere in the world." Ice Brent crude futures rose by nearly $3/bl earlier today, but are now trading below the previous settlement level. Iran and the wider Mideast Gulf region were on high alert as Israel weighed its options for a response to Tehran's assault on Israeli territory last weekend. That attack, involving more than 300 drones, ballistic missiles and cruise missiles, was the first ever direct assault on Israel from Iranian territory. As yet, there has been no official confirmation from either side that today's attack originated from Israel. Media reports quoted unnamed US and Israeli officials saying Israel had launched the drones, and Oman's foreign ministry condemned Israel "for its attack this morning on Isfahan". Iran's attack on Israel last weekend was itself in response to a suspected Israeli air strike on an Iranian diplomatic compound in the Syrian capital, Damascus, at the start of April. That killed seven members of Iran's powerful Islamic Revolutionary Guard Corps (IRGC), including two generals. Despite its magnitude, the Iranian retaliation was not only highly choreographed, but also telegraphed to key stakeholders beforehand in an effort to limit damage and casualties. Israel said immediately after the attack that almost all of Iran's drones and missiles were intercepted with the help of allied forces in the region and that there were no fatalities, only "light" damage to the Nevatim military base in Israel's Negev desert. De-escalatory strike The limited nature of Iran's strike prompted Israel's western allies to urge it to show restraint. The US appealed to Israeli prime minister Benjamin Netanyahu to "take the win" and claim victory for its defence. But as it became increasingly clear that a response without a military dimension would be unpalatable for Israel, the US and Europe turned their efforts to making sure whatever Israel chose to do was also limited and fell below a threshold that could trigger yet another escalation in tensions. "This was probably the level of attack that on one hand was necessitated by internal Israeli calculations within the security cabinet and broader political coalition, and by virtue of the pressure by allies and what the US was willing to countenance," said Geneva Graduate Institute senior research associate Farzan Sabet. "It was a limited strike with the message that we can hit you anywhere, anytime, and without having to resort to a major strike involving 300-plus missiles." In the days following Iran's attack on Israel, several key IRGC figures said Tehran had "decided to create a new equation with Israel" ꟷ specifically that Tehran would retaliate to any Israeli attack on its interests or citizens from Iranian territory. This would be a shift from the previous status quo, which would see Israel regularly target Iranian interest and officials in third countries, many times without response from Tehran. But the limited nature of Israel's latest attack, and the very concerted effort by Iranian officials, military personnel and media to downplay its severity and impact so far, suggests it could feasibly provide a de-escalatory off-ramp for Iran. "Should Israel's response be limited to this, the Islamic Republic will not be under pressure to retaliate," said Arab Gulf States Institute senior fellow Ali Alfoneh. But is too early to say whether today's incident is the totality of Israel's response. "We're running up to [the Jewish holiday of] Passover [on 22-30 April]. The Israelis may not have wanted to carry out a major retaliation ahead of Passover so as to avoid the threat of war hanging over the country during the holiday," Sabet said. "So it is very possible that more [retaliatory attacks] could come after Passover." By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India mulls using more natural gas in steel sector
India mulls using more natural gas in steel sector
Mumbai, 19 April (Argus) — India's steel ministry is considering increasing natural gas consumption in the sector as it aims to lower carbon emissions from the industry. Steelmakers held a meeting with the steel ministry earlier this month, to discuss challenges and avenues to increase gas allocation to the sector, according to a government document seen by Argus . Steel producers requested that the government set gas prices at an affordable range of $7-8/mn Btu for them, to make their gas-based plants viable, as well as for a custom duty waiver on LNG procured for captive power. India's LNG imports attract a custom duty of 2.5pc. City gas distribution firms sell gas at market-determined prices to steel companies. Representatives from the steel industry also requested for the inclusion of gas under the purview of the country's goods and service tax, and to be given higher priority in the allocation of deepwater gas, which has a higher calorific value. Deepwater gas is currently deployed mostly to city gas distribution networks. Steelmakers are currently undertaking feasibility tests for gas pipeline connectivity at various steel plants. But a gas supply transmission agreement requires a minimum five-year period for investment approval. The steel industry is heavily reliant on coal, and the sector accounts for about 8-10pc of carbon emissions in the country. A task force of gas suppliers including IOC, Gail, BPCL, Shell, and HPCL and steel producers like Tata Steel, AMNS, All India Steel Re-roller Association and the Pellet Manufacturers Association has been set up, and the team is expected to submit a report on increasing natural gas usage and lowering carbon emissions by 15 May, the government document said. This team is one of the 13 task forces approved by the steel ministry to define the country's green steel roadmap. The steel ministry aims to increase green steel exports from the country in the light of the policies under the EU's Carbon Border Adjustment Mechanism (CBAM), which will take effect on 1 January 2026. Under the CBAM, importers will need to declare the quantity of goods imported into the EU in the preceding year and their corresponding greenhouse gas emissions. The importers will then have to surrender the corresponding number of CBAM certificates. CBAM certificate prices will be calculated based on the weekly average auction price of EU Emissions Trading System allowances, expressed in €/t of CO2 emitted. This is of higher importance to Indian steelmakers as the EU was the top finished steel export destination for Indian steelmakers during the April 2022-March 2023 fiscal year with total exports of 2.34mn t, and has been the preferred choice for Indian steel exports in the current fiscal year owing to higher prices compared to other regions. Indian steelmakers have started to take steps to lower their carbon emissions by announcing collaborations with technology companies to decarbonise, and are trial injecting hydrogen in blast furnaces, and increasing the usage of natural gas in ironmaking. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Pilbara Mining sees continuing Li demand
Australia’s Pilbara Mining sees continuing Li demand
Singapore, 19 April (Argus) — Australian mining firm Pilbara Minerals' sees continuing lithium demand from its customers, while the firm continues to focus on cost optimisation. Pilbara in March accepted a pre-auction offer of $1,106/dry metric tonne (dmt) for 5,000dmt of 5.5pc-grade lithium concentrate (spodumene) cif China. The price equates to approximately $1,200/dmt 6pc-grade lithium concentrate (spodumene) cif China, said Pilbara, which reflects the "ongoing demand and positive pricing for unallocated production volume". "When you look at the past 60 days up to mid-April, the increases [in lithium prices] are fairly material," said the firm's managing director and chief executive Dale Henderson during the latest quarterly earnings call, adding that the recent uptick in lithium pricing is "comforting". Argus -assessed prices for 6pc-grade lithium concentrate (spodumene) held stable at $1,100-1,200/t cif China on 16 April from a week earlier, rebounding from an all-time low of $850-1,050/t on 27 February. But a standoff has more recently formed between spodumene producers and lithium refineries, with the former maintaining their offer prices and consumers rejecting them. Pilbara's spodumene realised price in January-March fell by 28pc on the quarter to $804/dry metric tonnes (dmt) cif China, despite the average grade of spodumene shipments rising by 0.1 percentage point to 5.3pc, which translates to $927/dmt for 6pc-grade lithium concentrate (spodumene). But the realised price during the quarter remained above its unit operating cost of $519/dmt cif China, which fell by 1pc on the quarter. Pilbara's ending cash balance came in at A$1.8bn ($1.15bn) as at 31 March, down from A$2.1bn a quarter earlier. Output Pilbara's output during January-March rose by 2pc on the quarter and by 21pc on the year to 179,000dmt. The output was propped up by a record monthly production of over 80,000dmt in March, partly because the P680 primary rejection facility reaching its nameplate production capacity in the second half of the quarter. But its chief operating officer Vince De Carolis said the peak performance should not be construed as an annualised run rate. The firm said it is not stockpiling its production volume as it sees "ongoing customer demand". Pilbara's spodumene sales volumes rose by 3pc on the quarter and by 14pc on the year to 165,121dmt for an average 5.3pc grade. Pilbara earlier in February defended its lithium downstream strategy and last month signed a binding agreement with Chinese refiner Ganfeng to carry out a joint feasibility study as they explore building a downstream conversion plant. The two firms are exploring building a lithium hydroxide and/or lithium carbonate conversion plant with 32,000 t/yr of lithium carbonate equivalent capacity, alongside a potential intermediate lithium chemical facility in the country. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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