Trump calls off Mexico tariff threat

  • : Crude oil, Fertilizers, LPG, Metals, Natural gas, Oil products
  • 19/06/08

US president Donald Trump today called off his threat to impose tariffs on imports from Mexico after pronouncing himself satisfied with the immigration proposals submitted by the Mexican government.

"The Tariffs scheduled to be implemented by the US on Monday, against Mexico, are hereby indefinitely suspended," Trump announced through Twitter shortly after returning to Washington from a weeklong tour of Europe.

Mexican officials pledged to use the country's National Guard to stem the flow of immigrants from other Latin American countries, a promise that will be finalized in coming weeks.

Trump on 31 May, just before leaving the US, threatened to impose a 5pc tariff on "all goods" from Mexico starting on 10 June, and to ratchet the duties up to 25pc by October unless the country reduced the number of migrants crossing into the US illegally.

A high-level Mexican government delegation headed by foreign minister Marcelo Ebrard, visiting Washington on 4-7 June, submitted proposals on immigration enforcement. US vice-president Mike Pence and other officials said yesterday and earlier today the proposals were not sufficient to address Trump's concerns, but left the decision on tariffs to him.

"Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border," Trump said in another tweet, noting that the State Department will release details of what Trump dubbed a "signed agreement."

The agreement, which is actually a joint declaration by the US State Department and Mexico's Foreign Ministry, lists broad measures the two countries plan to implement to address immigration. Mexico has pledged to deploy its National Guard throughout its territory to prevent migrants from Central America from traveling to the US border.

The countries will review progress on implementation every 90 days and "in the event the measures adopted do not have the expected results, they will take further actions," according to the declaration. "The US and Mexico will continue their discussions on the terms of additional understandings to address irregular migrant flows and asylum issues, to be completed and announced within 90 days, if necessary," the declaration said.

Mexico's president Andres Manuel Lopez Obrador said that "thanks to the support of all Mexicans, the imposition of tariffs on Mexican products exported to the US was avoided."

The prospect of tariffs on imports from Mexico, including heavy crude, has chilled the US energy industry that operates in an interconnected North American market.

US sanctions on Venezuela and Canadian production cuts already have stressed the heavy crude market and a tariff on imports from Mexico would exacerbate the situation, industry group American Fuel and Petrochemical Manufacturers vice president for government relations Geoff Moody told Argus earlier today. "Our refineries are not going to be running as efficiently as they can be, and therefore are going to be less competitive in this global refined product marketplace," Moody said before the agreement was announced.

Individual refiners said that a 5pc tariff would not severely impact trade between the countries, but were concerned about a potential escalation.

AFPM, the American Petroleum Institute and other business groups have strongly urged the administration to desist from the imposition of tariffs.

The administration dismissed negative implications for US industry and consumers of starting a trade war with the US' largest trade partner as irrelevant. "The president has no higher priority than ending the immigration that is flooding our southern border," Pence said yesterday.

But in the end the decision was Trump's alone.

Even with the Mexico tariffs averted for now, the administration's trade wars with China and disputes with other major trading partners are stressing the industry. The trade actions have created long-term uncertainty for US oil and natural gas producers dependent on access to foreign markets, an energy industry insider said.

Trump in March threatened to shut down the US-Mexico border to commercial traffic over immigration concerns, only to back off the threat.

"He makes these threats, and then he backs off when he sees the danger," Senate Democratic leader Chuck Schumer (New York) said on 4 June. "I have a feeling that this one just popped into his head."


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24/05/07

Liberty Merchant Bar to be 'mothballed', sources say

Liberty Merchant Bar to be 'mothballed', sources say

London, 7 May (Argus) — Liberty Steel will announce the mothballing of Liberty Merchant Bar (LMB) in Scunthorpe, England, this week, multiple sources told Argus . LMB has effectively been mothballed for a couple of years, as it stopped producing in 2022 amid cash constraints and problems with energy supply. The mill was powered by gas captured in the coke-making process at British Steel , but that supply has now stopped. Sources suggest the mothballing announcement is really a sign that the plant will not reopen, given it has been off line for so long. Around 135 staff are employed at the site — it is not clear whether they will be redeployed elsewhere in the group. Liberty recently said it has signed a new framework agreement with its major creditors, following the refinancing of its Infrabuild business in Australia, which would enable it to "consolidate its UK steel businesses under a new entity with a simpler structure, a strong balance sheet and greater access to third-party finance and investment". Liberty has been promising to publish consolidated financial results since 2019, but is still yet to do so. Under this consolidation, existing UK companies will transfer their assets and employees to the new entity, the company said. The change has enabled "development of a comprehensive plan that aims to take Liberty's electric arc furnace (EAF) melting capacity" at Rotherham to 2mn t/yr, the company added. The two existing furnaces at the site — N and T — have a capacity of 1.2mn t/yr, but have been running well below this. Only T is running at present, following prepayment from aerospace customers, and it has produced less than 7,000t so far this year. Liberty's eventual plan is to produce feed for longs and engineering bar from furnace N, feed for aerospace customers from furnace T, and to install a new EAF to produce slab for the company's plate and coil mills in Scotland and Wales. The company declined comment. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Gorgon LNG train to be out for five weeks


24/05/07
24/05/07

Australia’s Gorgon LNG train to be out for five weeks

Singapore, 7 May (Argus) — One of three trains at Australia's 15.6mn t/yr Gorgon export terminal will be off line for five weeks, operator Chevron told Argus on 7 May. The train has been off line since 30 April because of a mechanical fault in a turbine. Chevron's five-week shutdown expectation is slightly longer than the initially expected shutdown period of about 2-3 weeks, traders said. Each week of downtime on one train at Gorgon reduces the terminal's available liquefaction capacity by about 100,000t. The five-week shutdown is likely to reduce the terminal's production by about 5-8 cargoes, traders said. One standard-sized cargo is roughly equivalent to 60,000-70,000t of LNG. But overarching sentiment from market participants is that the impact on both prices and supply will be limited, as only one train is affected and there are ample cargoes for June and July. There will be a temporary spike in prices as affected buyers — if any — will have to secure prompt cargoes to replace lost LNG from Gorgon, keeping prices supported well above $10/mn Btu, traders said. The shutdown will have a greater impact on prices if repair works drag on for longer and affect summer deliveries, they added. The ANEA price, the Argus assessment for spot LNG deliveries to northeast Asia, for the first and second half June were assessed at $10.57/mn Btu and $10.58/mn Btu on 7 May, higher by 40¢/mn Btu from the previous day. First- and second-half July ANEA prices were assessed at $10.64/mn Btu and $10.66/mn Btu, up by 36¢/mn Btu/mn Btu from a day earlier. Chevron has rescheduled deliveries of some LNG cargoes for their Asian offtakers, according to some traders. Further details are unclear. Shell might have bought around 3-4 cargoes because of the shutdown at Gorgon, according to traders. It is not clear whether the cargoes are for June or July delivery. Some traders have offered both June- and July-delivery cargoes to Chevron but the firm has responded by saying that the shortfall can be managed by optimising its own portfolio, traders said. The Gorgon LNG joint venture is operated by Chevron with a 47pc stake, while ExxonMobil and Shell hold 25pc each. By Simone Tam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Global battery installation growth slows in 1Q: SNE


24/05/07
24/05/07

Global battery installation growth slows in 1Q: SNE

Singapore, 7 May (Argus) — The growth of global electric vehicle (EV) battery installations during January-March this year has slowed with stuttering global EV demand, data from South Korean market intelligence firm SNE Research show. Global EV battery installations during the first quarter rose by around 22pc from a year earlier to 158.8GWh compared with 36pc growth for the same period last year. Most top battery manufacturers have experienced lower growth rate ( see table ), with Japan's Panasonic and South Korea's SK On installing fewer batteries compared with a year earlier. China's Contemporary Amperex Technology (CATL) and BYD continue to spearhead the growth, albeit also at a slower pace. Consumers' preference for battery EVs globally waned as plug-in hybrid EV and hybrid EVs growth gained momentum because of factors including continued high interest rates and a shortage of charging infrastructure, according to SNE. Samsung SDI earlier this year pinned its hopes on a gradual EV battery market recovery in this year's second half when it expected benefits from lower interest rates starting to be realised. Lower interest rates could spur consumers spending and business investment. But US Federal Reserve policymakers earlier this month signalled that they are likely to hold rates higher for longer until they are confident inflation is slowing "sustainably" towards the 2pc target. The higher interest rates and lower residual values of EVs given price cuts on new vehicles could push up EVs' monthly leasing terms, which are often financed, according to Dutch investment bank ING's senior economist Rico Luman and senior high yield credit strategist Oleksiy Soroka. The scaling back of subsidies in Germany will also weigh on EV uptakes, they said. The IEA has forecast that EV sales will continue to grow in most major markets this year but at a slower rate compared with 2023. Global EV sales this year are forecast to top 17mn, more than 20pc of total global vehicle sales. By Joseph Ho Global EV battery installations (GWh) Jan-Mar '24 Jan-Mar '23 1Q '24 y-o-y % ± 1Q '23 y-o-y % ± CATL 60.1 45.6 31.9% 32.9% BYD 22.7 20.3 11.9% 103% LGES 21.7 20.1 7.8% 43.6% Panasonic 9.3 10.6 -12.6% 21.8% Samsung SDI 8.4 6.2 36.3% 44.2% SK On 7.3 7.9 -8.2% 17.9% CALB 6.3 5.2 22.2% 26.8% EVE 3.6 2.3 54.7% 64.3% Guoxuan 3.4 2.7 22.1% 3.8% SVOLT 2.7 0.9 217.7% NA Others 13.4 8.4 59.2% NA Total 158.8 130.2 22% 35.8% Source: SNE Research 1. Calculated 1Q '23 growth rate using SNE Research adjusted figures 2. Used SNE Research 1Q '24 growth rate figures 3. Omitted 1Q '23 growth rate figure for "others" given SVOLT's likely in the list (making it an inaccurate comparison) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

General Petroleum expands UAE base oil storage facility


24/05/07
24/05/07

General Petroleum expands UAE base oil storage facility

Singapore, 7 May (Argus) — UAE-based lubricant producer General Petroleum plans to finish building the second phase of its UAE base oil storage terminal by the end of May, according to a source close to the firm. The construction started in March and will consist of 12 storage tanks, each with a 2,200t capacity. The producer aims to start operations at the second phase in June. Construction for a third phase is also scheduled to begin in June 2025, which will add four storage tanks of 6,000t capacity each. The first phase of the storage terminal started operations in March 2020 . That storage terminal consisted of eight storage tanks, each with a 1,550t capacity. The facility, located in the Hamriyah free zone in Sharjah, is expected to have a combined 62,800t base oil storage capacity after the phase three expansion is complete. The terminal is connected by two pipelines to the jetty. General Petroleum operates a 150,000 t/yr lubricant plant opposite the storage terminal, and exports more than a third of its production to overseas markets, the same source added. The company had highlighted North Africa, Asia-Pacific, and the Americas as key markets for growth. The blender also has a 25,000 t/yr production facility in Tanzania and a 35,000 t/yr facility in Uganda. The UAE is a major lubricant blending and trading hub in the region because of its strategic location and logistics infrastructure. The Mideast Gulf is also largely self-sufficient on base oil supply and is typically a net exporter of the lubricant feedstock, especially for Group I and Group III supplies. Regional base oil supply is set to rise in the years ahead with planned expansions. Africa is a growing market for base oils, propelled by its gross domestic product and population growth. Rising mobility needs and vehicle ownership is also expected to boost demand in the years ahead. Africa predominantly produces Group I base oils but remains structurally short on supply. Overseas supplies, including those from the Mideast Gulf, make up a sizeable portion of the region's imports. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Daihatsu fully reopens domestic auto operations


24/05/07
24/05/07

Japan’s Daihatsu fully reopens domestic auto operations

Tokyo, 7 May (Argus) — Japanese car manufacturer Daihatsu resumed operations at Kyushu and Osaka on 6 May and 7 May respectively, marking the full reopening of its domestic plants. Daihatsu produces around 400,000 units/yr and 6,000 units/yr at Kyushu in south Japan and Osaka in west Japan respectively, according to a company representative that spoke to Argus. Combined production at these two plants accounts for around half of its total domestic output. It suspended all its operations in December 2023 after it was accused of tampering with safety test results. Daihatsu partially resumed operations in February and March but the Kyushu and Osaka plants remained closed. The company's March output fell by 65.8pc from a year earlier to 30,453 units , although it recovered from 6,692 units and none in February and January respectively. The country's overall industrial production index increased by 3.8pc from the previous month, according to the ministry of trade and industry last week, mostly driven by a production recovery of passenger vehicles. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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