European automotive sector plans recovery
The European automotive sector has proposed a plan to help restart the crippled industry after Covid-19 lockdown restrictions are eased, following closures amid the pandemic and new car sales all but vanishing in April.
EU-wide production losses since mid March, as a result of automotive factory shutdowns, have reached 2.3mn vehicles, according to the European Automobile Manufacturers' Association (ACEA).
New car sales have also fallen drastically. The UK automotive market in April experienced its worst ever month as the pandemic closed showrooms and dealerships across the country, causing new car sales to fall by 97.3pc on the year. New car sales in France fell by 88.8pc on the year in April and the Italian market fell by 97.5pc from last year.
The fall in automotive activity has impacted industries across Europe, with aluminium alloy producers closing alongside their automotive customers, while base oil demand has also been hit hard.
Targeting decision makers at EU and national levels, the industry's action plan has been signed by three other European associations alongside the ACEA, comprising the European Association of Automotive Suppliers, the European Tyre and Rubber Manufacturers Association and CECRA, an umbrella organisation regrouping national automotive trade associations and European brand dealer councils.
Among the plan's 25 suggested actions are calls to issue harmonised guidance on health and safety precautions for the workplace and an exemption on the transport of goods from border closures, as well as temporary flexibilities in competition rules, immediate renewal schemes for all vehicle categories across the EU and the postponement of all non-essential public consultations for at least two months.
"It is now crucial to bring the entire automotive value chain back into motion. We need a co-ordinated relaunch of industrial and retail activity, with maintained liquidity for businesses," ACEA director general Eric-Mark Huitema said. "Targeted measures will need to be taken to trigger demand and investment. Demand stimulus will boost the utilisation of our manufacturing capacity, safeguarding jobs and investments."
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USGC LNG-VLSFO discount to steady itself
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New York, 23 April (Argus) — The premium for US Gulf coast (USGC) very low-sulphur fuel oil (VLSFO) to LNG is expected to linger but not widen this spring, maintaining interest in LNG as a bunkering fuel. US Gulf coast LNG prices slipped from a premium to a discount to VLSFO in March 2023 and have remained there since. The discount surpassed 200/t VLSFO-equivalent in January (see chart). Both LNG and VLSFO prices are expected to remain under downward pressure due to high inventories, which could keep the current LNG discount steady. The US winter natural gas withdrawal season ended with 39pc more natural gas in storage compared with the five-year average, according to the US Energy Information Administration (EIA). Henry Hub natural gas monthly average prices dropped below $2/mmBtu in February, for the first time since September 2020, Argus data showed. The EIA expects the US will produce less natural gas on average in the second and third quarter of 2024 compared with the first quarter of 2024. Despite lower production, the US will have the most natural gas in storage on record when the winter withdrawal season begins in November, says the EIA. As a result, the agency forecasts the Henry Hub spot price to average less than $2/mmBtu in the second quarter before "increasing slightly" in the third quarter. EIA's forecast for all of 2024 averages about $2.20/mmBtu. US Gulf coast VLSFO is facing downward price pressure as demand falls and increased refinery activity signals a potential supply build . Rising Gulf coast refinery activity was likely behind some of the drop in prices. Gulf coast refinery utilization last week rose to 91.4pc, the highest in 12 weeks and up by 0.9 percentage points from the prior week. US Gulf coast suppliers are also eyeing strong fuel oil price competition from eastern hemisphere ports such as Singapore and Zhoushan, China, importing cheap Russian residual fuel oil. In general, LNG's substantial discount to VLSFO has kept interest in LNG for bunkering from ship owners with LNG-burning vessels high. The EIA discontinued publishing US bunker sales statistics with the last data available for 2020. But data from the Singapore Maritime & Port Authority, where the LNG–VLSFO discount widened to over $200/t VLSFOe in February, showed Singapore LNG for bunkering demand increase 11.4 times to 75,900t in the first quarter compared with 6,700t in the first quarter of 2023 and 110,900t for full year 2022. By Stefka Wechsler US Gulf coast LNG vs VLSFO $/t VLSFOe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Inversión en autos eléctricos en México crecerá
Inversión en autos eléctricos en México crecerá
Mexico City, 23 April (Argus) — Las inversiones en México en ensamblaje de vehículos eléctricos (EV) y cadenas de suministro alcanzaron un máximo histórico en 2023 y se espera que crezcan en 2024, a pesar de una reciente desaceleración de la demanda global de EV y las próximas elecciones presidenciales. Se realizaron 96 inversiones en México durante 2023 en vehículos eléctricos y gastos relacionados con la electromovilidad, que alcanzaron los $5,600 millones, según el último informe de electromovilidad de la empresa mexicana de investigación Directorio Automotriz (DA). La empresa espera que esto se expanda en 11pc a $6,200 millones en 2024. Las expectativas de crecimiento global se han moderado para los vehículos eléctricos, pero DA señaló que la trayectoria sigue siendo positiva con proyecciones para las ventas globales de EV en 13.3 millones de unidades vendidas este año frente a los 9.6 millones vendidos en 2023. El año comenzó con varios anuncios de inversión. En febrero, Volkswagen dijo que invertirá $942 millones en su centro de electromovilidad de Puebla para agregar producción de EV. Magna, una empresa de piezas estructurales de EV, invertirá $166 millones para suministrar el complejo de General Motors en Ramos Arizpe, Coahuila. Seojin Mobility de Corea planea una inversión de hasta $260 millones para una planta de montaje de motores eléctricos en Escobedo, cerca de Monterrey, Nuevo León, con planes de completarla en febrero de 2025. Hay más anuncios de inversiones relacionadas con los vehículos eléctricos en el horizonte a finales de este año para empresas chinas como BYD, el principal competidor global de Tesla, así como Chirey Motors y SAIC, afirmó DA. El factor político El momento político en el país es importante, con elecciones presidenciales el 2 de junio y leyes electorales que limitan la participación de funcionarios gubernamentales en cualquier anuncio de inversión importante o evento relacionado desde el 1 de marzo. La perspectiva de la fabricación de automóviles chinos en suelo mexicano también está provocando nerviosismo entre los grupos comerciales estadounidenses que afirman que las empresas chinas están utilizando México como centro de representación para evitar aranceles. Aunque EE. UU. tiene un arancel de 27.5pc sobre los vehículos eléctricos chinos, incluso si se fabrican en suelo mexicano, las importaciones desde México de EV construidos con piezas chinas solo pagan un arancel de 2.5pc. "Pekín ya está utilizando a México como puerta trasera para eludir los aranceles de las importaciones a EE. UU. y está siguiendo el mismo plan de juego que casi destruyó las industrias del acero y solar de EE. UU.", dijo la Alianza para la Fabricación Estadounidense (AAM, por sus siglas en ingles) en un informe a finales de febrero. La presión sobre el gobierno de EE. UU. para tomar medidas está aumentando, con la presidencia y muchos asientos del congreso en juego en las elecciones de noviembre. 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Por James Young Planes recientes de inversión en EV y electromovilidad en México Anunciado Compañía Proyecto Inversión Ubicación Feb 23 Stellantis Producción de la van de carga EV RAM ProMaster 200 Saltillo, Coahuila Marzo 23 Tesla and OEM suppliers Tesla Gigafactoría e inversiones asociadas 15,000 Santa Catarina, Nuevo Leon Marzo 23 Jetour Planta de ensamblaje de vehículos híbridos y de combustión interna 3,000 Ramos Arizpe, Coahuila Feb 24 Volkswagen Centro estratégico para EV 942 Puebla Marzo 24 Magna Agregar dos divisiones para partes de EV 166 El bajío Marzo 24 BMW Construir planta de ensamblaje de baterías para EV 849 San Luis Potosí Marzo 24 Seojin Mobility Construir planta de motores para EV 260 Sonora Abril 24* ZF Group Centro de I+D en electromovilidad 200 Monterrey, Nuevo León — Anuncios de la compañías *Abierto Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Kuwait’s KPC agrees VLSFO term supply contract with QE
Kuwait’s KPC agrees VLSFO term supply contract with QE
Singapore, 23 April (Argus) — Kuwait's KPC hassigned a term agreement with fellow state-owned firm Qatar Energy (QE) to supply very-low sulphur fuel oil (VLSFO) for loading over July 2024 through to June 2025. The VLSFO supplied amounts to 1.2mn t/yr (21,000 b/d). KPC finalised the term contract at around a $8-9/t premium against the average of Singapore 0.5pc marine fuel spot assessments, according to a source close to the company. QE has expanded its own bunkering infrastructure at the port of Ras Laffan and started relying on VLSFO supplied from Kuwait's 615,000 b/d al-Zour refinery since early last year. The VLSFO supplied is mainly to meet the country's bunkering and power generation demand. QE had a previous mini term VLSFO agreement with KPC last year. KPC supplied around 1-2 Medium Range size vessels of VLSFO each month from January 2023 to March this year, according to global trade analytics platform Kpler. The announcement of the term deal left the market unfazed, said a Dubai based fuel oil trader, as KPC has regularly offered term tenders over the year. Supplies to QE has been continuing since last year, with the deal merely being a renewal of their previous agreement, the trader added. This is KPC's third official term contract concluded since the start-up of al-Zour in late 2022. The first term contract was awarded for second-half 2023 loading to Shell, with the second to ExxonMobil for first-half 2024 loading. The terms of the two contracts stated a minimum of 80,000 t/month and a maximum of 720,000 t/month of VLSFO, with KPC having discretion over the total volume. Al-Zour can produce around 11mn-12mn t/yr of VLSFO at full capacity, with around half of it allocated for exports. By Asill Bardh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil 1Q tallow exports triple on long-term contracts
Brazil 1Q tallow exports triple on long-term contracts
Sao Paulo, 22 April (Argus) — Brazilian beef tallow exports totaled 73,930 metric tonnes (t) in the first quarter, a three-fold increase from the same three-month period in 2023 on rising demand. Almost 93pc of outflows between January and March were shipped to the US, according to data from Brazil's trade ministry. Long-term contracts explain the rising flow of exports, even though spot market arbitrage was closed throughout the first quarter (see chart) . The price of tallow in the Paranagua and Santos ports was $960/t fob on 19 April, keeping the arbitrage closed to US Gulf coast buyers, where the reference product was at $901/t on a delivered inland basis. Brazilian tallow is also negotiated at a premium against soybean oil, which closed at $882/t fob Paranagua on 19 April. This scenario has been observed since the 1 December 2023 start of Argus ' tallow export price assessment. Historically, vegetable oil in Brazil was traded at a discount to tallow, but strong demand has boosted the price of animal fat. Some biodiesel plants have been purchasing used cooking oil (UCO) or pork fat as an alternative. In 2023, there were doubts about whether the outflow of tallow from Brazil would be constant. Market participants now believe that the 2024 start of operations at new renewable diesel refineries in the US should sustain exports. Local suppliers that have already signed supply guarantee contracts — some up to three years — with American buyers are also considering export opportunities with Asia, including a new renewable diesel plant in Singapore that could receive Brazilian cargoes. Expansion projects are propelling US demand, including work that would bring capacity at Marathon Petroleum's Martinez Renewables plants in California to 2.35mn m³/y (40,750 b/d)and the Phillips 66 Rodeo unit in northern Californiato 3mn m³/y. These and other new projects will increase annual US demand for tallow by 5mn t. Maintenance on the horizon Maintenance at US refineries has Brazilian sellers bracing for a short-term drop in prices. Between May and June the Diamond Green Diesel (DGD) unit in Port Arthur, Texas, will shut down for maintenance, a stoppage that could impact demand for Brazilian inputs. Market participants have already observed a slight increase in domestic tallow supply, a change they attribute to maintenance at DGD. The advance of the soybean crop in Argentina is also expected to increase the supply of feedstocks to North American plants, as some refineries are returning to soybean oil after a hiatus of several years. The soybean oil quote on the Chicago Board of Trade (CBOT) is an important reference for the price of tallow. By Alexandre Melo Renewable feedstocks in Brazil on fob basis R/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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