Bad weather suspends operations at north China ports

  • Spanish Market: Metals, Oil products
  • 10/05/21

Port operations at the Chinese port of Qianwan and Dongjiakou stopped today because of bad weather.

The navigation channel at the port of Dongjiakou was closed at 4.30am local time on 10 May (20:30 GMT on 9 May) because of fog, and port operations were also suspended for ships at berth.

At the port of Qianwan, all loading and discharging activities have been disrupted since 5.40am local time, and berthed vessels were requested to shift to the anchor for shelter, according to a local market participant.

China's meteorological administration issued a yellow alert for the heavy fog in the west and south parts of the Yellow Sea for 10 May, and southwest part of the East Sea for 10-11 May.

The port of Dongjiakou has 17 berths that handles dry bulk, liquid bulk, and other general cargoes. The port of Qianwan operates 40 berths, mainly for containers, ferrous ores, pulp, and other general cargoes.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

30/04/24

New US rule may let some shippers swap railroads

New US rule may let some shippers swap railroads

Washington, 30 April (Argus) — US rail regulators today issued a final rule designed to help customers switch railroads in cases of poor rail service, but it is already drawing mixed reviews. Reciprocal switching, which allows freight shippers or receivers captive to a single railroad to access to an alternate carrier, has been allowed under US Surface Transportation Board (STB) rules. But shippers had not used existing STB rules to petition for reciprocal switching in 35 years, prompting regulators to revise rules to encourage shippers to pursue switching while helping resolve service problems. "The rule adopted today has broken new ground in the effort to provide competitive options in an extraordinarily consolidated rail industry," said outgoing STB chairman Martin Oberman. The five-person board unanimously approved a rule that would allow the board to order a reciprocal switching agreement if a facility's rail service falls below specified levels. Orders would be for 3-5 years. "Given the repeated episodes of severe service deterioration in recent years, and the continuing impediments to robust and consistent rail service despite the recent improvements accomplished by Class I carriers, the board has chosen to focus on making reciprocal switching available to shippers who have suffered service problems over an extended period of time," Oberman said today. STB commissioner Robert Primus voted to approve the rule, but also said it did not go far enough. The rule adopted today is "unlikely to accomplish what the board set out to do" since it does not cover freight moving under contract, he said. "I am voting for the final rule because something is better than nothing," Primus said. But he said the rule also does nothing to address competition in the rail industry. The Association of American Railroads (AAR) is reviewing the 154-page final rule, but carriers have been historically opposed to reciprocal switching proposals. "Railroads have been clear about the risks of expanded switching and the resulting slippery slope toward unjustified market intervention," AAR said. But the trade group was pleased that STB rejected "previous proposals that amounted to open access," which is a broad term for proposals that call for railroads to allow other carriers to operate over their tracks. The American Short Line and Regional Railroad Association declined to comment but has indicated it does not expect the rule to have an appreciable impact on shortline traffic, service or operations. Today's rule has drawn mixed reactions from some shipper groups. The National Industrial Transportation League (NITL), which filed its own reciprocal switching proposal in 2011, said it was encouraged by the collection of service metrics required under the rule. But "it is disheartened by its narrow scope as it does not appear to apply to the vast majority of freight rail traffic that moves under contracts or is subject to commodity exemptions," said NITL executive director Nancy O'Liddy, noting it was a departure from the group's original petition which sought switching as a way to facilitate railroad economic competitiveness. The Chlorine Institute said, in its initial analysis, that it does not "see significant benefit for our shipper members since it excludes contract traffic which covers the vast majority of chlorine and other relevant chemical shipments." By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Oversupply and fragmentation challenge steel market


30/04/24
30/04/24

Oversupply and fragmentation challenge steel market

London, 30 April (Argus) — Participants in the Turkish and European long steel markets at a major industry event this week anticipated a difficult remainder of 2024, expecting demand to be generally supplied by local capacities. With the Chinese Metallurgical Industry Institute forecasting a 1.7pc drop in Chinese steel demand in 2024 and the country's steel output expected to remain stable, Chinese exports are likely to continue putting pressure on global rebar prices. China's overall steel exports this year so far are on course to exceed the 91.2mn t shipped in 2023. Traders were concerned over the Chinese real estate sector, which, along with infrastructure construction, drives the bulk of Chinese steel demand but has been plagued by a mismatch between housing demand and supply in recent years. Markets outside of China are also likely to be well-supplied for the rest of the year or longer, with a weak construction outlook in Europe and with steel capacity on an upward trend in India and southeast Asia. Government investment in construction projects is likely to drive Indian steel demand to at least 190mn t by 2030, said Somanath Tripathy of the Steel Authority of India Limited (SAIL). But in the near term Indian demand growth has been sluggish while output has increased, with steelmakers Tata and JSW both reaching record steel output in the financial year of 2023-2024. Meanwhile, participants had weak expectations for the European and Turkish rebar markets for the rest of the year. Expectations of a recovery in the European steel sector have largely been pinned on the likelihood the European Central Bank will reduce interest rates at some point in the second half of the year. But a German trader noted while this move would lend some support, high interest rates are far from being the only challenge for the sector. The EU construction sector faces increasingly high costs, partly caused by sustainability requirements, participants noted, slowing investment and weighing on property demand by pushing up prices. The combination of high interest rates and inflation in Turkey, as well as dwindling export options, means several Turkish steel mills are currently running at near 50pc of capacity. Turkish rebar exporters face stiff competition in most export markets from Chinese suppliers, whose fob prices are currently around $70/t lower than Turkey, as well as from north African producers. The challenge for Turkish exporters is structural, with the business model of importing scrap and exporting steel no longer as viable due to higher scrap demand from other regions as well as the significantly lower energy costs of north African and Middle Eastern producers. Some market participants noted in this context, the introduction of the European Carbon Border Adjustment Mechanism (CBAM) could favour Turkish EAF mills in the long run, who are no longer competitive in terms of price in most markets, but whose use of scrap versus direct reduced iron (DRI) makes their production less carbon-intensive than other EAF-based producers in the region. Turkish producers are working to make sure they will be compatible with EU environmental requirements, a Turkish mill source said. But government support for these efforts has been lacking, he added. Overall, protectionist measures have significantly harmed Turkey's export options, as has the outbreak of conflicts and tensions in the region over the past two years. Some Turkish mills have lost up to half of their regular export sales as a result of the halt of exports to Israel and a slowdown in sales to Yemen as a result of the conflict in Gaza and Houthi vessel attacks. Until European prices pick up significantly and north Africa is selling at capacity, Turkish long steel exports will not be competitive in the near future, a trader noted. By Brendan Kjellberg-Motton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Climate change to heavily disrupt mining: PwC


30/04/24
30/04/24

Climate change to heavily disrupt mining: PwC

London, 30 April (Argus) — More than 70pc of the world's production of copper, cobalt and lithium could face significant or high drought risks by 2050, up from less than 10pc currently and posing a significant challenge to future supply growth, according to accounting firm PwC. Under a low-emissions scenario — which imagines global carbon emissions rapidly decreasing — more than 70pc of cobalt and lithium production and around 60pc of the world's bauxite and iron production will be at risk by 2050, according to PwC's 2024 Climate Risks to Nine Key Commodities Report . More than half of the world's copper production will be disrupted by 2050 in a low-emissions scenario and over 70pc in a high-emissions scenario. PwC warns that unless commodity producers and buyers take preventive action now, their operations are likely to be increasingly disrupted. "Climate change is already fracturing the stability of the natural world, and it will increasingly fracture the stability of global supply chains unless adaptive measures are taken," said global sustainability leader Will Jackson-Moore. Some companies are responding to the growing drought risk by investing in water management systems to prevent wastage. Others are considering infrastructure adaptations, such as building elevated storage facilities in flood-prone areas. Several mining companies in Chile have invested in desalination plants, the report notes. According to PwC's 2024 Annual Global CEO Survey , 47pc of chief executives have taken proactive measures to safeguard their workforces and physical assets from climate change. To continue building resilience and adapting to climate risks, businesses must assess impacts, work with suppliers and communities, establish a climate strategy, make transparent disclosures, leverage adaptive products and services and participate in multi-stakeholder efforts, the latest report concludes. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

HSFO demand supports Rotterdam 1Q bunker sales


30/04/24
30/04/24

HSFO demand supports Rotterdam 1Q bunker sales

London, 30 April (Argus) — Total sales of fossil bunker fuels and marine biodiesel blends at the port of Rotterdam were 2.45mn t in the first quarter this year, up by 13pc compared with the final three months of 2023 but 9pc lower year on year, according to official port data. Sales firmed across the board quarter on quarter, even though market participants had described spot bunker fuel demand in the region as "mostly limited" and shipping demand as lacklustre. High-sulphur fuel oil (HSFO) sales rose the most. Disruption in the Red Sea resulted in many vessels re-routing around the southern tip of Africa, increasing the incentive of bunkering with HSFO as opposed to very low-sulphur fuel oil (VLSFO) and marine gasoil (MGO), according to market participants. The longer journeys meant that vessels on the route increased their fuel consumption to reduce delivery delays, supporting conventional bunker fuel sales at Rotterdam. Higher prices for HSFO in Singapore also helped support HSFO demand in Rotterdam. Marine biodiesel sales at Rotterdam increased by 13pc on the quarter and by 76pc on the year in January-March, despite the Dutch government's decision to half the Dutch renewable tickets (HBE-G) multiplier for shipping at the turn of the year. The move has led to a substantial increase in prices for advanced fatty acid methyl ester (Fame) 0 blends in the Amsterdam-Rotterdam-Antwerp (ARA) hub. The inclusion of shipping in the EU's Emissions Trading System (ETS) from January may have lent support to demand for biofuel blends. Marine biodiesel made up 11pc of total bunker fuel sales at Rotterdam in the first quarter, the same share as the previous quarter, which was a record high. LNG bunker sales at Rotterdam in January-March soared by 45pc on the quarter and by 150pc on the year. By Hussein Al-Khalisy Rotterdam bunker sales t Fuel 1Q24 4Q23 1Q23 q-o-q% y-o-y% VLSFO & ULSFO 857,579 847,862 1,205,288 1 -29 HSFO 818,028 643,218 809,871 27 1 MGO/MDO 383,409 361,585 468,373 6 -18 Biofuel blends 262,634 233,108 149,206 13 76 Total 2,453,610 2,177,078 2,685,515 13 -9 LNG (m³) 131,960 91,305 52,777 45 150 Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Milei's bid to open Argentina's economy passes


30/04/24
30/04/24

Milei's bid to open Argentina's economy passes

Montevideo, 30 April (Argus) — Argentina's congress today approved the government's sweeping economic legislation that could open the door to more private-sector investment in energy and commodities. The bill passed on a 142-106 vote, with five abstentions, after a marathon 20-hour debate. Changes include privatizing some state-owned companies, controversial labor reforms and measures to promote LNG development. The omnibus legislation, which includes 279 articles, is an important victory for President Javier Milei's administration and will change the way many sectors, including energy, operate in the country. Lawmakers aligned with Milei's Liberty Advances party swiftly moved to the second stage of the process, which requires approval of individual articles. The omnibus bill was initially approved in February, but the administration withdrew it after congress failed to approve several key individual articles. That original version included 664 articles. Several of the more controversial articles were brought up immediately after the blanket approval and easily passed. They included an article allowing for privatization of state-run enterprises — national power company Enarsa is on the list — and another delegating to the administration the power to eliminate state agencies without having to consult with congress. Also approved was the article on labor reform. The country's oilseed industry and port workers' unions called a strike the previous day to pressure congress to modify the labor reform. That did not happen. It passed in a separate 136-113 vote. The strike started to fizzle with approval of the legislation. Approval of the package includes several articles the administration says will open the door to major investments in the energy sector. Chapter II specifically covers natural gas, and introduces new regulations for LNG. The chapter includes five articles that allow for 30-year contracts for LNG export projects and guarantees that gas supply cannot be interrupted for any reason. The energy secretariat has six months to design the implementing rules for LNG. The government wants to speed up monetization of the Vaca Muerta unconventional play, which has an estimated 308 trillion cf of natural gas reserves. It is pushing for Malaysia's Petronas to fully commit to a large-scale LNG facility that would start with a $10bn investment. Chapter IX of the legislation creates a new framework, known as the Rigi, for investments above $200mn. It offers tax, fiscal and customs benefits. Companies have two years from implementation of the legislation to take advantage of the Rigi. The chapter on this framework is one of the most complex in the bill, including 56 articles. It includes specific references to energy projects, from power generation to unconventional oil and gas development. The administration claims the legislation will help tame inflation and stabilize the economy. Inflation was 276pc annualized through February, but is declining, and Milei announced that monthly inflation would be in single digits when the March numbers are announced. The country recorded a 0.2pc quarterly fiscal surplus in the first quarter of this year, something not achieved since 2008. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more