EU details Russian 'trade distortion'
The European Commission today published a lengthy report on "significant" government-driven distortions in Russia's economy, focusing on energy, steel, aluminium, chemicals and fertilisers.
Trade commissioner Valdis Dombrovskis said the report is an additional "instrument" in the EU's toolbox to combat unfair trade. The 436-page report has been prepared for use in EU trade-defence proceedings.
The report details a range of distorting factors. Russian producers of nitrogen fertilisers, including ammonium nitrate, are competitive in global markets because of the low price of Russian gas, the report states. The EU has an anti-dumping duty of €32.71/t on Russian ammonium nitrate. Russian urea ammonium nitrate (UAN) carries anti-dumping duties of €27.77-42.47/t, depending on the producer.
Likewise, the profitability of the country's chemicals industry is "mainly achieved" through gas contract prices that are "significantly lower than world prices".
The commission notes that the lower cost of power in Russia follows on from the key fuels — coal, oil, natural gas and uranium — mainly belonging to state-owned firms. And it points out that energy prices are regulated by state-run monopolies to stimulate output.
The commission paints a similar picture for chemicals, citing the benefits of Russia's low domestic energy prices.
Regarding fertilizers and metals, the commission notes that there are also discounts for deliveries of specific goods. "Some of the big companies, such as Novatek, NLMK or PhosAgro were also benefiting from cheaper rates. The ... railway tariff reduction constitutes, in reality, state support, putting some producers in a privileged position."
For steel, the commission notes — somewhat more cautiously — that certain elements of the country's electricity, gas and rail transport pricing policies, as well as export restrictions on scrap, "may" contribute to lower costs of production and domestic and international deliveries.
And for aluminium, the commission sees private-sector Rusal benefiting from "some" state measures to strengthen the firm's position domestically and internationally, including preferential state funding for some projects, promotion of increased use of wrought aluminium on domestic markets and measures limiting market access for foreign producers.
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US met coal suppliers expect belated supply tensions
US met coal suppliers expect belated supply tensions
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Austrian regulator consults on gas tariff changes
Austrian regulator consults on gas tariff changes
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US job growth nearly halved in April
US job growth nearly halved in April
Houston, 3 May (Argus) — The US added fewer jobs in April as the unemployment rate ticked up and average earnings growth fell, signs of gradually weakening labor market conditions. The US added 175,000 jobs in April, the Labor Department reported today, fewer than the 238,000 analysts anticipated. That compared with an upwardly revised 315,000 jobs in March and a downwardly revised 236,000 jobs in February. The unemployment rate ticked up to 3.9pc from 3.8pc. The unemployment rate has ranged from 3.7-3.9pc since August 2023, near the five-decade low of 3.4pc. The latest employment report comes after the Federal Reserve on Wednesday held its target lending rate unchanged for a sixth time and signaled it would be slower in cutting rates from two-decade highs as the labor market has remained "strong" and inflation, even while easing, is "still too high". US stocks opened more than 1pc higher today after the jobs report and the yield on the 10-year Treasury note fell to 4.47pc. Futures markets showed odds of a September rate cut rose by about 10 percentage points to about 70pc after the report. Average hourly earnings grew by 3.9pc over the 12 month period, down from 4.1pc in the period ended in March. Job gains in the 12 months through March averaged 242,000. Gains, including revisions, averaged 276,000 in the prior three-month period. Job gains occurred in health care, social services and transportation and warehousing. Health care added 56,000 jobs, in line with the gains over the prior 12 months. Transportation and warehousing added 22,000, also near the 12-month average. Retail trade added 20,000. Construction added 9,000 following 40,000 in March. Government added 8,000, slowing from an average of 55,000 in the prior 12 months. Manufacturing added 9,000 jobs after posting 4,000 jobs the prior month. Mining and logging lost 3,000 jobs. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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