US auto workers to strike at 3 plants if no deal

: Metals, Petrochemicals
23/09/15

Workers with the United Auto Workers (UAW) union will go on strike at three US auto plants starting tonight if there is not a tentative labor agreement with the Big 3 automakers before a midnight ET deadline.

UAW president Shawn Fain said in a Facebook live stream from Detroit, Michigan, Thursday night that workers at the final assembly and paint portion of the Ford assembly plant in Wayne, Michigan, the General Motors (GM) Wentzville, Missouri, assembly plant, and the Stellantis Toledo, Ohio, assembly complex will strike at midnight. The plants make midsize pickup trucks, SUVs and vans, some of the companies' most profitable products.

The three plants will be the first targets of the UAW's "stand up" strike strategy, where a rolling list of facilities will strike while other union members continue to report to work. Fain said negotiations will not resume on Friday if there is no deal Thursday night.

"Tonight, for the first time in our history, we will strike all three of the Big 3 at once," Fain said in a brief statement. "This is our generation's defining moment."

The current contract with Ford, GM and Stellantis expires at 11:59pm ET on 14 September. The UAW has been demanding wage increases of at least 40pc, the restoration of cost of living adjustments, and an end to tiered employment, among other demands.

In a statement released at the same time Fain was speaking Ford reported that it had received the "first substantive counterproposal" from the UAW at 8pm ET.

"Unfortunately, the UAW's counterproposal tonight showed little movement from the union's initial demands submitted 3 August," Ford said. "If implemented, the proposal would more than double Ford's current UAW-related labor costs, which are already significantly higher than the labor costs of Tesla, Toyota and other foreign-owned automakers in the US that utilize non-union-represented labor."

The company referred to the union's demands as "unsustainable terms" and warned of the consequences if workers have to take strike pay and lose out on profit sharing in early 2024 because of a work stoppage.

Earlier in the day GM put forth a counterproposal to the UAW, raising its wages two percentage points to 20pc, which matched an earlier offer from Ford. Stellantis has not provided an update since 13 September.

The White House said President Joe Biden spoke with Fain and leaders of the auto companies earlier on Thursday to discuss the negotiations.

In Canada Unifor, the union representing auto workers in the country, has chosen Ford as its strike target, following the more traditional path of targeting a single automaker during contract negotiations. That union's current contract expires at 11:59pm ET on 18 September.

By Rye Druzin

Possible impacts from US auto stirke				short tons (st)
Companies	Vehicle manufactured/month (US)	Steel consumption/month	Aluminum consumption/month	Copper consumption/month


Ford	177,221	175,449	43,065	4,431
GM	230,659	228,352	56,050	5,766
Stellantis	144,883	143,434	35,207	3,622
Total	552,763	547,235	134,321	13,819
Source: American Iron and Steel Institute, Copper Development Association, auto company quarterly sales figures
Figures are likely an underesimate.

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25/12/22

Chile watchdog clears SQM-Codelco deal

Sao Paulo, 22 December (Argus) — Chile's comptroller general's office (CGR) formally acknowledged on 19 December the legality of lithium mining contracts between the country's economic development firm Corfo and a planned joint venture between Codelco and SQM, clearing the way for the partnership to proceed with conditions. Corfo's mining lease and project contracts are a key legal step in allowing state-owned miner Codelco to partner with private company SQM to mine lithium in the Atacama desert under the national lithium strategy of President Gabriel Boric, who leaves office in March. Even though it acknowledged the legality of the transaction, CGR imposed a set of conditions that need to be resolved before the deal can be finalized, all of which must happen before 31 December. The acknowledgement comes after Corfo withdrew and resubmitted a legal resolution that CGR flagged for inconsistencies on early December. CGR said the effectiveness of the approved contracts hinges on Codelco submitting documentation related to the creation of its lithium subsidiary, Minera Tarar, for retroactive legal review. CGR noted that the Codelco-SQM joint-venture agreement includes a clause tying its closing to a US Securities and Exchange Commission (SEC) investigation into SQM being "substantially finished," a condition the watchdog said must be waived or modified for the deal to proceed. Corfo and Codelco must send proof to CGR by year-end proving that they complied with all conditions imposed by the watchdog. The CGR has also set some ongoing guardrails to the deal, including a mechanism that ensures Codelco — under the national lithium strategy — remains the majority owner and controller of the Atacama lithium assets unless the watchdog approves a change of ownership. It also said that payments to regional government bodies must follow strict standards and may be audited. SQM-Codelco joint-venture moves forward By acknowledging the deal's legality, the CGR paves the way for the joint venture between Chilean private company SQM and state-owned Codelco to move to its closing stages, pending the resolution of the watchdog's conditions. CGR's approval was the last necessary external sign-off needed for the agreement to materialize, according to Codelco. Chile's exiting economy minister Nicolas Gráu celebrated CGR's nod, saying that it will play a big part in "allowing Chile to double lithium production in the next decade". Codelco said it will now move forward with SQM to finalize the joint-venture, an indication that it will meet and work to resolve all of CGR's conditions. The state-owned miner said that only the final legal and administrative steps are left for the deal to close. The partnership agreement, which will allow both companies to extract lithium from the Atacama salt flats from 1 January 2031 to 31 December 2060, has been undergoing a lengthy approval process since May 2023. Eight countries and over 20 Chilean regulatory bodies signed off on the deal. CGR is still performing an audit on "certain operations associated with" the SQM-Codelco tie-up , including Codelco's financial advisory contract with investment bank Morgan Stanley, as well as Codelco's operations, to determine whether public resources are being used appropriately. It will also review claims from a congressional investigative commission regarding the transparency of the negotiation process, SQM's tax situation, and a clause that relates to Codelco's obligation to sell 100pc of extracted potassium to SQM under the partnership. The Atacama desert's brines, from which the joint venture will produce lithium, contain potassium that is precipitated and extracted alongside lithium. If the CGR identifies legal issues in its audit, it can order corrective measures, seek internal disciplinary action within the parties and refer its findings to prosecutors, though it lacks the authority to void the deal, leaving full responsibility with SQM and Codelco to finalize the partnership. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: BZ demand to see little change in 2026

25/12/22

Viewpoint: BZ demand to see little change in 2026

Houston, 22 December (Argus) — US benzene (BZ) demand is expected to remain steady in the first quarter of 2026 because of low operating rates for BZ derivatives, sources said. Operating rates for BZ derivatives were low in 2025 because of weak demand and a busy turnaround season, with several styrene monomer (SM), cumene and phenol producers conducting turnarounds. At least one US Gulf coast styrene producer is expected to perform a turnaround in the first quarter that is estimated to run 20-30 days, another source said. Ethylbenzene (EB) demand into gasoline blending may finally see its seasonal lull, as high-octane, low-Reid vapor pressure (RVP) blendstocks are typically in low demand from October-March, when US gasoline specifications allow high-RVP blendstocks like butane to enter the blend pool. In late 2025, EB demand remained steady into gasoline blending because of strong demand for high-octane aromatic blendstocks to offset low-octane light naphtha, which was blended into the gasoline pool to keep up with the demand for US gasoline exports. But, with expensive feedstock BZ heading into 2026, EBSM producers cannot sell EB above breakeven levels, which caused EBSM producers to reduce operating rates, sources said. When spot BZ reaches a premium to feedstock reformate prices, EB becomes a less competitive blendstock because of its production cost ( see chart ). This disposition of ethylbenzene's value as a blendstock opens competition for other aromatic blendstocks like toluene and mixed xylenes to enter the gasoline pool. North American EBSM operating rates are expected to remain at 48-60pc in early 2026, according to a generic Argus model with operating rates informed by market participants. SM export demand is anticipated to remain limited. The arbitrage to Europe is closed for December-loading cargoes to arrive in January, Argus data show. Buying interest could emerge from Latin America, which typically takes 20,000-25,000 metric tonnes (t) of SM from North America every two or three months, depending on polystyrene (PS) production rates. Cumene demand is expected to remain flat in 2026 on steady, though sluggish, downstream demand for phenol and acetone, which have big shares in the construction, automobile, appliances and resin industries. A source said sellers are taking customers' spending and borrowing power into deeper consideration when exploring spot and new contract opportunities to mitigate selling risk. Phenol is anticipated to see little fundamental change in 2026, sources said. There are few expected phenol turnarounds for maintenance in the first half of the year, and sources expect consumption to remain comparable to 2025. New housing permits declined in 2025 compared to 2024, according to US Census Bureau data, which led to fewer homes being built and less phenol demand. About half of all phenol produced in the US goes into the construction sector. Phenol and cyclohexane demand from the automotive industry may decline in 2026 on lower automobile manufacturing leading into the new year. Domestic automobile production trailed lower throughout 2025 as many producers were operating below full output rates. In August, US automobile production dipped below 100,000 units for the first time since January, according to the US Bureau of Economic Analysis (BEA). Before January, monthly domestic automobile production last dipped below 100,000 units in September 2021. The automotive industry makes up nearly 22pc of phenol consumption. Benzene supply is expected to remain low in 2026 on reduced US production and fewer imports because of US tariff policies that add costs for traders. On production, some market participants expect selective toluene disproportionation (STDP) unit operating rates to remain low in 2026 because BZ prices rose in late 2025 on tight supply, not strong demand, sources said. Though STDP margins look healthy on paper moving into 2026, if STDP operators raise production rates, the higher BZ supply would depress prices and margins to the point where STDP operators decide to turn run rates down again or idle their units, another source said. The US is historically in a net BZ deficit and usually relies on BZ imports to add supply when BZ production lags demand. With US tariff policies adding costs to those imports, shipments of BZ from Europe and Asia have largely declined. Market participants said they expect this trend to continue in 2026 without changes to US tariff policy. By Jake Caldwell Ethylbenzene economics vs Benzene and Reformate $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: US housing to stymie chlor-vinyl in 1H 2026

25/12/22

Viewpoint: US housing to stymie chlor-vinyl in 1H 2026

Houston, 22 December (Argus) — An anemic US housing market is expected to continue restraining domestic demand for polyvinyl chloride (PVC) and chlor-alkali during the first half of 2026, prompting US producers to push more PVC into the export market. US Federal Reserve policymakers have cut their target interest rate three times since September, but market participants do not expect lower borrowing rates to significantly boost demand for housing — a major PVC derivative market — until the peak of construction season next summer at the earliest. To mitigate further price erosion and excess inventories, producers are expected to increase export sales, especially to India. PVC producers expect the Fed will continue to cut interest rates in 2026 to help stimulate the domestic housing market, which was listless this year on rising prices and elevated mortgage rates. But producers may be disappointed, as Fed policy makers have penciled in just one quarter-point rate cut for next year. Lower Fed target rates can influence borrowing costs for mortgages, business loans, and other expenditures in the homebuilding sector. Interest rates for a traditional 30-year fixed mortgage have remained above 6pc since September 2022, contributing to housing affordability issues that stretch back to 2021, according to data from Federal Reserve banks in St Louis and Atlanta. Housing starts have been weak in the past three years as mortgage rates surged. Starts were at a 1.31mn unit annual pace in August, down from about a 1.6mn rate in 2021-2022. US home builders have little incentive to develop new units, which in turn could support higher home prices in 2026 as homebuilding continues to be outpaced by a growing population. Meanwhile, weak housing demand and construction activity has left US PVC producers to manage an oversupplied domestic market, weighing on spot export prices and likely maintaining headwinds through the first quarter of 2026. Spot export prices have been rangebound from $550-595/metric tonne (t) fas Houston since mid-October, as US exporters vie with competitive Chinese volumes into India — the largest global importer of PVC. Exports from the US to India are anticipated to rebound in 2026 as much of the regulatory headwinds that crimped shipments this year are largely resolved. India earlier this year required foreign exporters to have their plants inspected and certified by the Bureau of Indian Standards (BIS) by June, which was eventually delayed to the end of the year. India in early November dropped those requirements, but confusion around the shifting BIS deadlines led US producers to limit shipments to India. Additionally, India approved preliminary anti-dumping rates on US and Chinese PVC exports but failed to fully implement the penalties — effectively eradicating the last trade barrier into the country. US PVC exports to India in January-September this year fell by 68pc from the same nine-month period last year, according to US Census Bureau trade data compiled by Global Trade Tracker (GTT), largely because of various regulations and evolving trade policies. Exporters, though, are expected to reclaim lost market share in India in 2026, especially as the US housing market is anticipated to remain weak until the third quarter. Increased exports should help draw down inventories early next year, after suppliers grappled with excess inventory and multi-year price lows. The export market may become more important to US producers if domestic demand remains weak. This is due to OxyChem's expanded Battleground plant in La Porte, Texas, coming on line by the end of 2026 or early 2027 and US chlor-alkali producer Olin focusing expansion plans on the PVC market. Caustic soda prices A bearish PVC market to start 2026 is expected to lend price support to caustic soda prices for fully integrated producers. Caustic soda is co-produced with chlorine, a critical feedstock for PVC manufacturing, and producers can increase caustic soda prices to preserve electrochemical unit (ECU) margins during periods of bearish PVC and chlorine market conditions. An ECU is comprised by 1t of chlorine and 1.1 dry metric tonnes (dmt) of caustic soda. Domestic producers and distributors raised caustic soda prices in monthly contract negotiations for much of 2025, helping to offset incrementally lower chlorine settlements, despite building caustic soda inventories during the second half of the year. Domestic caustic soda inventories are poised to end the year at elevated levels following an estimated 5-10pc cut in US consumption and largely steady production for much of 2025. But to sustain a pricing strategy that maintains value in caustic soda, suppliers with deep-water access are expected to boost exports in 2026, primarily to Europe and Brazil, or peel back operating rates. Further caustic soda price support next year is anticipated to be drawn from rising natural gas prices for electricity generation, which comprises about 70pc of total ECU variable costs in the US Gulf coast region, Argus estimates. Average natural gas costs into electricity are forecast to climb by nearly 8pc next year to $4.20/mmBtu, according to the US Energy Information Administration's Short-Term Energy Outlook . By Connor Hyde and Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: Price battle pushes Brazil HRC lower in 2025

25/12/22

Viewpoint: Price battle pushes Brazil HRC lower in 2025

Sao Paulo, 22 December (Argus) — Brazilian hot-rolled coil (HRC) prices declined throughout 2025, despite solid economic growth and steady demand in most sectors, with prices ending the year lower because of pricing competition between domestic and imported HRC. Argus - assessed imported HRC cfr Brazil dropped to $515-550/metric tonne (t) on 11 December, down from $535-555/t on 2 January. Argus -assessed HRC ex-works fell to R3,600-3,900/t ($655.80-702.80/t) in the latest assessment compared with R4,000-4,300/t at the start of the year. Brazilian mills resisted pressure from a rising influx of lower-priced imports stemming from an oversupply in China, holding prices steady for the first five months of the year. But mills yielded to price cuts in June, when price spreads were as much as 38pc higher than imports. Buyers were able to secure deals below R3,400/t in July, market participants told Argus . Tighter safeguard measures around the world and anti-dumping actions targeting Chinese material helped redirect steel to countries with looser trade defenses, including Brazil. Imports hit an all-time high of 6mn t in the year through Novembe r , up by 7pc from the same period last year, industry chamber Aço Brasil said. These volumes added to domestic production and boosted apparent consumption — the sum of production and imports minus exports — by 2.5pc to 24.8mn t year-to-date November. Service centers and trading companies took advantage of the lower import prices to build up their inventories. High stock levels ultimately weighed on demand and dragged down offer levels. Domestic and import sellers were forced to slash prices in June to spur buying interest in an already oversupplied market. Import HRC prices slipped below $500/t in July. Sales up The Brazilian real strengthened by 14.2pc against the dollar year-to-date mid-December, boosting import competitiveness for 2025. Imports offered another advantage beyond pricing: lower financial costs from international trading firms. Brazilian mills rarely operate on credit, and even if they did, borrowing costs in Brazil reached their highest level in 20 years in 2025. Brazil's 15pc target interest rate, which spurs higher commercial lending rates, has dampened end-user demand, but not enough to slow steel consumption significantly. Despite the rising import flows, domestic sales remained stable on the year at 19mn t year-to-date November, Aço Brasil said. Full-year 2025 domestic sales are expected to match the high-21mn t level of a year earlier, which was the highest since a demand surge during the pandemic. Brazil's gross domestic product grew by an annualized 2.7pc through September, Brazil's statistics bureau IBGE said, on track to beat the central bank's full-year growth forecast of 2.25pc. The solid economic growth has supported steel demand, especially in the construction and automotive sectors. Real estate construction starts jumped to 307,366 units year-to-date September, up by 8.4pc compared with the same period in 2024, the Brazilian construction industry chamber (CBIC) said. Real estate sales rose 4pc to 312,240 properties over the same period, CBIC data show. The Minha Casa Minha Vida low-income housing program accounted for nearly half of both sales and new units. Brazil produced 2.46mn vehicles in January-November, up by 4.1pc year-on-year, automaker association Anfavea said. Registrations rose 1.4pc to 2.1mn units over the same period, while automobile exports surged by 39pc to 510,130 units, driven by higher shipments to Argentina, Colombia and Chile. The annual drop in HRC prices in Brazil was driven less by demand and more by fierce competition between domestic producers and import suppliers, which pushed prices lower despite stable consumption. Brazilian HRC prices are expected to remain under pressure in early 2026 as high inventories and competitive import offers persist, a trader said. A modest recovery is expected in the second half of the year, depending on stronger domestic demand and potential trade defense measures, market participants told Argus . By Isabel Filgueiras Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: Asean aluminium output to reach 2.7mn t

25/12/22

Viewpoint: Asean aluminium output to reach 2.7mn t

Singapore, 22 December (Argus) — Primary aluminium output in southeast Asia is expected to rise to 2.7mn t in 2026, but supply tightness will likely persist in the first quarter because the ramp up of new capacities will be gradual, while export demand will remain strong. Southeast Asia will add 780,000 t of primary aluminium output in 2026, driven by smelter expansion in Indonesia and new smelters in Vietnam. Of which, 705,000t will come from Indonesia, sending the country's expected total output to 1.55mn t. Key projects in Indonesia include Chinese-backed Juwan in Weda Bay, Taijing in Morowali and Kaltara in North Kalimantan. Taijing and Juwan, jointly developed by Chinese companies Tsingshan and Xinfa, are expected to bring new capacity on line in 2026. Taijing plans to start production in the third quarter of 2026 with expected output of around 180,000t, while Juwan expects to reach its full capacity of 250,000 t/yr in the first quarter of 2026. Kaltara, developed by Indonesian firm Adaro and Chinese firm Lygend, began phase one operations in October-December. It plans to ramp up to its full phase one capacity of 500,000 t/yr by October 2026. These projects form part of Indonesia's strategy to leverage its abundant bauxite reserves. Indonesia's ample bauxite reserves and its success in developing a local nickel supply chain over the past decade have attracted a growing number of Chinese value-added producers seeking to integrate production chains in the country. In addition, more Chinese value-added-product (VAP) producers have expanded operations in Indonesia over the past eighteen months. They are looking to diversify supply chains to pre-empt any disruptions if China reaches its government-imposed annual capacity cap of 45mn t/yr for aluminium production. China produced about 3.8mn t of primary aluminium during January-October, up by 2pc from a year earlier, according to China's National Bureau of Statistics. This trend of building integrated supply chains locally in Indonesia is expected to absorb part of Indonesia's additional primary aluminium output in the coming years, given that some Chinese producers are likely to purchase aluminium to process into VAPs. Meanwhile, exports will continue to grow. Indonesia's primary aluminium exports rose by 71pc on the year to 414,600t in January–October, from 243,000t in the same period a year earlier. China remained the top destination, taking 191,500t, or 46pc of total volumes. Exports of aluminium value-added products — under HS code 7604, 7605, 7606, 7607, 7608, 7609, 7610 and 7616 — increased by 40pc on the year to around 111,000t in the same period, according to Global Trade Tracker data. Power stability and reliance on coal remain key bottlenecks for Indonesian smelters. Coal-fired captive plants dominate power supply, while renewable energy adoption is slow because of long lead times for infrastructure development and high costs, despite government efforts to push integration under its Net Zero 2060 roadmap, market participants said. In other parts of southeast Asia, Vietnam's Dak Nong smelter will commence the first phase of its operations, which has a nameplate capacity of 150,000 t/yr, in the second quarter of 2026. The project is expected to produce 75,000t of aluminium in 2026. Malaysia's Press Metal remains southeast Asia's largest integrated aluminium producer with a capacity of 1.08mn t/yr. Press is expected to operate at a utilisation rate close to 100pc for 2025 and 2026. Demand for Press' products from its smelter in Sarawak, which are considered low-carbon products in Turkey and Europe because of its hydro-powered smelter, will likely rise in response to EU's tighter carbon boarder adjustment mechanism (CBAM) requirements, effective on 1 January 2026. Indonesian state-owned producer Inalum is expected to keep output at around 280,000t or raise it slightly to about 285,000t in 2026. By Candice Luo Southeast Asia aluminium output outlook t Smelter Company Country 2025E ('000) 2026E ('000) ± in 2026 Designed Capacity ('000 t/yr) Press Metal Bintulu Press Metal Malaysia 960 960 0 960 Press Metal Mukah Press Metal Malaysia 120 120 0 120 Inalum Kuala Tanjung MIND ID Indonesia 280 285 5 600 Hua Chin Aluminum Indonesia Tsinghan/Huafon Indonesia 490 500 10 500 Taijing (IMIP Phase I) Tsinghan/ Xinfa Indonesia 0 180 180 600 Juwan (IWIP Phase I) Tsingshan /Xinfa Indonesia 50 250 200 250 Xianfeng (IWIP Phase II) Tsingshan /Xinfa Indonesia 0 50 50 250 Bintan Nanshan (BAI) Nanshan Group Indonesia 0 0 0 1,000 Kaltara Adaro, Lygend Indonesia 20 280 260 500 Dharma Inti Bersama (DIB) Harita Indonesia 0 0 0 1,000 East Hope Indonesia East Hope Indonesia 0 0 0 2,400 Dak Nong Dak Nong Vietnam 0 75 75 450 Duc Giang Duc Giang Vietnam 0 0 0 500 Bosal Malaysia project Bosal Malaysia 0 0 0 1,000 Total 1,920 2,700 780 10,130 Source: Argus Media, Company reports, Market sources Indonesia primary aluminium shipments by market in 2025 1Q 2Q 3Q Jan-Oct '25 China 15,504 64,547 87,356 191,475 South Korea 46,188 13,599 4,500 65,787 Vietnam 7,893 9,114 16,938 42,284 Turkey 29,997 5,899 - 35,896 Malaysia 4,000 1,000 16,094 22,394 Thailand 2,520 7,891 10,191 20,702 Japan 2,250 5,775 3,050 11,700 Spain - - - 10,000 Taiwan 1,646 4,346 1,698 9,390 Italy 4,647 - - 4,647 Others - - 200 302 World 114,645 112,272 140,027 414,577 Source: BPS-Statistics Indonesia,Global Trade Tracker Monthly primary aluminium exports from Indonesia (t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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