US manufacturing expands in Jan after 26 months: ISM

Spanish Market: Coal, Metals, Natural gas
03/02/25

US manufacturing activity expanded in January after 26 consecutive months of contraction, according to the Institute for Supply Management's latest factory survey.

The manufacturing purchasing managers' index (PMI) registered 50.9 in January, up from 49.2 in December. The new orders index rose to 55.1 last month from 52.1 in December, marking a third month of expansion. Readings above 50 signal expansion while readings under that point to contraction.

Production rose to 52.5 last month from 49.9 the prior month. Employment rose to 50.3 from 45.4.

"Demand clearly improved, while output expanded and inputs remained accommodative," ISM said. "Demand and production improved; and employment expanded."

US factory activity expanded robustly in the first two years after Covid-19 hit, then contracted for the subsequent two years, even as growth in services activity, the largest part of the economy, maintained the overall economy in expansion territory.

The new export orders index rose by 2.4 points to 52.4 and the imports index rose by 1.4 points to 51.1.

The prices index rose to 54.9 from 52.5, with aluminum, freight rates, natural gas, and scrap among gainers.

"Prices growth was moderate, indicating that further growth will put additional pressure on prices," ISM said.

The inventories index fell by 2.5 to 45.9, signaling contracting inventories. Backlog of orders fell by one point to 44.9, indicating order backlogs contracted for the 28th consecutive month after 27 months of expansion.

Supplier deliveries rose by 0.8 to 50.9, suggesting marginally slower deliveries.

By Bob Willis

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21/03/25

Australia's Simcoa may buy carbon credits until 2028

Sydney, 21 March (Argus) — Australia's silicon producer Simcoa will likely need to buy and surrender Australian Carbon Credit Units (ACCUs) until 2028 for safeguard mechanism compliance obligations before it completes a key decarbonisation project, it told Argus today. The project was awarded federal funds on 20 March. Australia's federal Labor government granted Simcoa A$39.8mn ($25mn) under its Powering the Regions Fund (PRF) to expand charcoal production at its Wellesley facility in Western Australia (WA) and remove the use of coal in silicon production. The project is expected to reduce the company's scope 1 emissions by around 90pc, or approximately 100,000 t/yr of CO2 equivalent (CO2e). Simcoa is Australia's only silicon manufacturer, which is a key component of solar panels. The funding will help maintain silicon manufacturing capability in the country in addition to cutting emissions, energy minister Chris Bowen said. The company currently uses 35,000 t/yr of metallurgical low ash coal in its operations, and anticipates usage will drop to zero after it doubles its charcoal production capacity by 25,000 t/yr to 50,000 t/yr. The completion date for the expansion is not expected before 2028. The firm may continue to buy [ACCUs] as it must use coal as a reducing agent for part of its production for calendar years 2025-27, or until the expansion project can be commissioned, the company told Argus on 21 March. Simcoa surrendered 22,178 ACCUs in the July 2022-June 2023 compliance year as it reported scope 1 emissions of 122,178t of CO2e with a baseline of 100,000t CO2e at its Kemerton silicon smelter. Figures were lower for the July 2023-June 2024 compliance period, the company said, without disclosing details. Australia's Clean Energy Regulator (CER) will publish 2023-24 safeguard data by 15 April . Simcoa anticipates scope 1 emissions at the Kemerton smelter to be "considerably below" the baseline once the charcoal expansion is completed and could make it eligible to earn and sell safeguard mechanism credits (SMCs), which traded for the first time in late February . "We will take whatever opportunity is available to us," the company said on potentially holding or selling SMCs in future. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada needs more oil pipelines: PM Carney

20/03/25

Canada needs more oil pipelines: PM Carney

Calgary, 20 March (Argus) — Canada needs to build more oil pipelines to reduce its dependence on foreign supplies while opening up new trade corridors for exports, prime minister Mark Carney said today, amid an escalating trade war with the US. "It's about getting things done. It's about getting, yes, getting pipelines built, across this country, so we that can displace imports of foreign oil," Carney said while in Edmonton, Alberta. A US-triggered trade war has sparked an urgent need across Canada to diversify its trading partners and limit the country's reliance on the US. This has lifted public support for getting pipelines and other infrastructure energy projects built. The prime minister envisions the federal government "using all of its power" and new legislation to expedite such projects, adding "additional levers" will be discussed when he meets with provincial premiers on 21 March. "We need to do things that had not been imagined or had not been thought possible, at a speed we haven't seen before," said Carney. "That's the nature of the time." TC Energy's current chief executive along with 13 other executives from the country's largest oil and gas companies urged the federal government this week to declare a "Canadian energy crisis" to expedite infrastructure projects. General election soon Carney is expected to call a general election soon with his Liberal party riding high in the polls. Despite the Liberals' recent track record on energy infrastructure, Carney is looking to appeal to Alberta voters eager for pipelines who typically vote for the rival, pro-oil patch Conservatives. A combined C$280bn ($194bn) of Canadian oil and natural gas projects have been cancelled over the past decade, according to the Canadian Association of Petroleum Producers. Of this, C$164bn in the form of LNG projects, C$63bn in pipeline projects, C$30bn in oil sands projects and C$22bn in refinery projects. TC Energy's 1.1mn b/d Energy East pipeline is commonly referenced by industry as a nation-building project that, proposed in 2013, would have supplied Albertan oil to eastern Canada but was abandoned because of changing regulations. There was still no clear indication of when a decision by the federal government could be obtained when TC Energy cancelled it in 2017. Energy East would have piped oil as far east as Irving Oil's 320,000 b/d refinery in Saint John, New Brunswick, which relies on foreign imports, while also giving shippers an outlet to export to Europe and beyond. Canada imported 490,000 b/d of crude in 2023, according to the Canada Energy Regulator (CER). Of this, 355,000 b/d came from the US, 63,000 b/d from Nigeria and 53,000 b/d from Saudi Arabia. Canada meanwhile produces about 5mn b/d, sending about 80pc of that to the US. Carney's infrastructure push includes the proposed Pathways Alliance project in Alberta, which entails a C$16.5bn carbon capture and storage hub that could remove up to 22mn t/yr of CO2 by 2030. Generally, Carney wants to pursue energy and trade corridors and trade including potentially from Alberta to either the Canada's Arctic coast in Nunavut or to Hudson Bay via Churchill, Manitoba. Or both. The subject of trade and pipelines was front and center during a meeting with Alberta premier Danielle Smith earlier in the day, who has criticized the federal Liberals for years. "Albertans will no longer tolerate the way we've been treated by the federal Liberals over the past 10 years," said Smith in a statement, adding a specific list of demands, including "unfettered oil and gas corridors to the north, east and west". The Nunavut project, called the Grays Bay Road and Port Project, is a proposed deepwater port that would cater to critical mineral exports. The proponent, West Kitikmeot Resources, told Argus earlier this month that it had not yet had discussions with Alberta about developing crude capabilities. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Upper Mississippi River reopens for transit

20/03/25

Upper Mississippi River reopens for transit

Houston, 20 March (Argus) — The first towboat arrived at St Paul, Minnesota, today, marking the start of the 2025 navigation season on the upper Mississippi River, according to the US Army Corps of Engineers (Corps). The Neil N. Diehl passed through Lock 2 at Hastings, Minnesota, with nine barges, crossing into St Paul on 19 March. Tows reaching St Paul signify the unofficial start of the navigation season, as St Paul is the last port to open on the Mississippi River after winter ice thaws each year. This is considered an average start time for the navigation season, which typically opens the third week of March. The first tow to reach St Paul in 2024 arrived on 17 March. The Corps released the final Lake Pepin ice measurements of 17in on 12 March and was unable to take new measurements this week since the ice had melted significantly. Lake Pepin measurements help determine when the ice will be thin enough for barges to transit up river. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil central bank raises target rate to 14.25pc

20/03/25

Brazil central bank raises target rate to 14.25pc

Sao Paulo, 20 March (Argus) — Brazil's central bank raised its target interest rate by 1 percentage point to 14.25pc amid accelerating inflation in a decelerating — but still heated — economy. The hike in the target rate, announced Wednesday, was the fifth in a row from a cyclical low of 10.5pc at the end of September last year, partly prompted by accelerating depreciation of the currency, the real, to the US dollar. Brazil's annualized inflation hit 5.06pc in February and is poised to keep accelerating. The bank's Focus economic report increased its inflation forecast to 5.7pc for the end-of-year 2025 from 5.5pc in January, when the bank's policy-making committee last met. Brazil's current government has an inflation ceiling goal of 3pc with tolerance of 1.5 percentage point above or below. The bank has recently changed the way it tracks the inflation goal. Instead of tracking inflation on a calendar year basis, it now monitors the goal on a rolling 12-month basis. The bank cited heated economic activity and a strong labor market as factors that have contributed to rising inflation. But the bank forecasts "modest GDP growth" for Brazil of almost 2pc in 2025, down from 3.4pc growth last year. Further tightening will also be linked to global economic uncertainty prompted by US president Donald Trump's aggressive trade and other policies and the monetary policies of the US Federal Reserve , according to the bank. Brazil's target interest rate is expected to keep rising at the bank's next meeting in 6-7 May, albeit to "a lesser extent" as the contributing factors are set to moderate, according to the committee. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU delays retaliatory tariffs on US goods to mid-April

20/03/25

EU delays retaliatory tariffs on US goods to mid-April

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