Veolia acquires US post-industrial recycler

: Metals, Petrochemicals
23/11/01

France-based waste management conglomerate Veolia has acquired US Industrial Technologies, a Michigan-based post-industrial recycler and waste management company.

US Industrial Technologies (USIT) manages waste streams for auto manufacturers in addition to municipal waste streams. The company is headquartered in Livonia, Michigan, and has a second location in Knoxville, Tennessee.

"This marks a logical and strategic next step for USIT, which has been able to build a strong foothold among its customers and is now poised to accelerate its growth potential through the affiliation with Veolia," USIT owner Jerome Prezekop said.

Veolia told Argus that the acquisition would help the company expand its auto and post-industrial recycling operations.

Veolia said following the USIT acquisition it would have 200 locations across the US and 2,300 employees.

By Zach Kluver

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25/12/24

Viewpoint: US butadiene demand cools, exports climb

Houston, 24 December (Argus) — Price support for the US butadiene (BD) market may remain under pressure next year from oversupply concerns, as market participants contend with weak demand, while volumes are increasingly redirected to the seaborne export market. Market participants told Argus that they expect their annual term commitments to stay unchanged in 2026, though some reductions are possible as derivative nameplate capacity shrinks. Most buyers and sellers anticipate demand conditions comparable to this year, which proved weaker than expected, as tariff- and other trade-related headwinds weighed on an already challenging market environment. The permanent closure of three derivative sites in 2025 — Lion Elastomers' synthetic rubber plant in Texas, Ineos Styrolution's acrylonitrile-butadiene-styrene plant in Ohio and Denka Performance Elastomer's chloroprene rubber plant in Louisiana — underscores broad weakness across a host of downstream segments. This follows the earlier shutdown of Invista's adiponitrile plant in Orange, Texas, in 2023. These four assets account for 17pc of US BD consumption capacity lost between 2023-2025, according to Argus Butadiene Analytics data. A combination of rising raw material costs and capital expenditures, low demand and regulatory burdens were cited as severely impacting the profitability of chemical operations. Part of the challenge, in tandem with those factors, stems from an influx of low-cost imports, primarily from Asia-Pacific. The US tariff regime, rolled out in April, has not yet lifted demand and, in some cases, eroded output among US derivative manufacturers. In fact, the White House's trade policy shifts have coincided with the shutdown of BD-based polymer facilities and an absence of new builds. The Institute for Supply Management's purchasing managers' index (PMI) fell to 48.2 in November, its ninth consecutive drop. Chemical products, plastics and rubber products were among the industries reporting contraction. Efforts to stimulate domestic production have failed to deliver a significant upside, leading some US suppliers to more closely match their contract nominations to netback export values. This dynamic has helped to reposition the US as the lowest-cost region, replacing Europe's long-standing advantage. The Argus prevailing US BD contract price (CP) for December settled at 29.25¢/lb ($645/t), the lowest level in over two years. December's settlement shed 19.75¢/lb year-to-date, or 40pc, the tenth consecutive decline. The US BD spot price on a fob basis followed the same pattern, remaining at a discount to the CP in nearly all months over the same period. Market fundamentals reshape trade flows A decrease in US demand for BD has pushed suppliers to lean more heavily on exports to bridge structural gaps, though this strategy has contributed to downward price pressure. US BD exports climbed to record levels this year, totaling 142,100t year-to-date through November, up by 66pc from 85,400t during the same period last year, Argus data shows. Nearly 54pc of these exports headed to Asia-Pacific, the world's largest consuming region. Mexico accounted for 44pc, a trend supported by shifting derivative production from the US to Mexico. Europe received the smallest share at 2pc, although volumes could rise as traders capitalize on the logistical advantages of co-loading BD with ethylene shipments bound for the Mediterranean. On a monthly contract basis, US BD prices have sustained a better value option than rival European supplies for delivery into northeast Asia. In December, the US CP maintained a discount of about $200/t compared with Europe's monthly contract price. This was wider than the estimated mid-$100s/t discount on a spot basis. Despite the US' low-cost position and growing exposure to seaborne exports, Europe has shipped almost twice as much volume to Asia-Pacific from January-November this year. A key driver of this trend is China's taxes on US imports, which gives other regions preferential market access. There have been discussions of exporting tons on a term basis to northeast Asia, but the US would have to compete for business with western Europe, Brazil and intra-regional suppliers in Asia-Pacific. The US will continue to prioritize spot shipments elsewhere in Asia-Pacific, primarily South Korea and Taiwan, unless China reverses course and grants tariff waivers on US-origin imports. By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: US steel tariffs cause scrap supply glut

25/12/24

Viewpoint: US steel tariffs cause scrap supply glut

Pittsburgh, 24 December (Argus) — North American ferrous scrap dealers and exporters will likely continue flooding the US market in 2026 because the tariff-protected US steel industry is on track to outcompete international markets for scrap. The magnetic pull of the US steel market this year attracted greater volumes of ferrous scrap deliveries from domestic and international shippers alike, in a trend that could keep bolstering US scrap supply and weighing on prices in 2026. "The tariffs are protecting US steel and aluminum industries and therefore domestic demand for scrap," said Stephen Mikkelsen, chief executive of global metals recycler Sims Metal during an August earnings call. "This has resulted in premiums often emerging for domestic scrap sales in the US." President Donald Trump's 50pc tariffs on imported steel have helped ramp up US steel mills' operating rates. The import tax has also guarded the US market from an oversupply of Chinese steel in the global marketplace. That dynamic has encouraged dealers to sell ferrous scrap — which does not face a tariff — increasingly to US steel mills rather than the seaborne market. "We see this continuing in fiscal year 2026. In our view, production changes will take time to play out, and China will continue to dampen steel prices, and therefore, ferrous scrap prices outside the US," Mikkelsen added. The recent divergence of US and Turkish steel prices signals that US exporters could continue to prefer selling into the domestic market in the first quarter. US flat and long steel prices have continued to climb in December. Turkish rebar has decreased to $559/t ex-works, an $18.50/t decrease since 4 December. US ferrous scrap market participants expect prices to edge up in January based on slower supply flows in the winter season. But the long-term trend of steel tariffs fueling higher ferrous scrap supply in the US will likely persist in 2026 and keep preventing major price increases. Trump has shown no interest in nixing the steel tariffs, likely indicating that the US market will continue attracting similar or larger volumes of scrap from domestic and international sources in 2026. The first of two price increases scrap dealers got this year came when winter weather curbed supply flows nine months ago. The second came this month under the same circumstance. Sellers craved stronger demand from US steel mills to lift markets in early 2025. They got their wish when Trump doubled US steel tariffs to 50pc in June. US steel mill utilization rates jumped by 4pc to higher than 79pc in the summer. The stronger run rates equated to hundreds of thousands of metric tonnes (t) of additional monthly demand for scrap. US exporters shift sales to domestic mills US exporters diverted scrap sales — particularly shredded scrap — to US steel mills to help fill that extra demand. US scrap exports are on track to fall by 15pc to 11.7mn t this year, the lowest sum since 2016, according to annualized US customs data pending the releases for the final three months of the year, which were delayed by the federal government shutdown. US scrap imports have also risen, particularly from Mexico and Canada, because US steel tariffs have lessened demand for scrap in those countries. US ferrous scrap import volumes are on course to total 4.1mn t this year, a 10pc increase from 2024. The extra scrap supply in the US has prevented scrap prices from raising proportionally with steel. #1 busheling, a key feedstock for hot-rolled coil, averaged $390/gross ton (gt) this month, a 4pc increase from a year earlier. But US hot-rolled coil was $922/short ton (st) this week, a 38pc uptick during that time. Shredded scrap, a major part of melt mixes for rebar, was $378/gt on average in December, up by 5pc from a year earlier. Rebar rose by 23pc to $915/st in the past year. By James Marshall US ferrous scrap and iron metallic import/export swings t 2025 2024 ± ±% Imports Ferrous scrap 4,109,633 3,750,091 359,542 9.6 Pig iron 5,443,307 4,713,161 730,146 15.5 DRI/HBI 1,562,073 1,525,159 36,914 2.4 Exports Ferrous scrap 11,666,187 13,876,316 -2,210,129 -15.9 Net change in iron units in US 3,336,731 US customs data aggregated by Global Trade Tracker with final three months of 2025 annualized Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: US tariffs altering UBC buying in ’26

25/12/24

Viewpoint: US tariffs altering UBC buying in ’26

Houston, 24 December (Argus) — Consumers of used beverage cans (UBCs) likely will seek to purchase more of the scrap grade on a spot basis in 2026, minimizing their exposure to long-term supply agreements after buying spreads widened to historical lows this year on the back of a record-high regional premium. Sell-side sources estimate that most rolling mills reduced their volumes under contract between 10-20pc for next year compared to 2025 levels, reflecting a shift in consumers' procurement strategies after US tariffs on aluminum imports disrupted price mechanisms against which UBCs and other grades of scrap are traded. "All mills directionally did less contract pounds. That showed up everywhere," a broker said about 2026 negotiations. "They all want more flexibility to buy spot." Rolling mills locked in annual contracts for 2025 at tight discounts to the Midwest transaction price (MWTP), with sources saying that most deals were struck on either side of 80pc within a narrow range. Supply availability of UBCs was constrained at the end of 2024, prompting consumers to accept brokers' and dealers' higher offers to ensure stable inflows of scrap. But US trade policies and White House threats against major trading partners provoked a surge in the Midwest P1020 premium, which led to a sharp rise in the MWTP and an influx of UBC imports from overseas suppliers, with shipments setting a one-month high of 30,082 metric tonnes (t) in May as importers sought to take advantage of higher prices in the US, customs data showed. The US imported an average 16,230t of the scrap every month from 2023-2024, according to customs data. The regional upcharge climbed by more than 270pc from the start of the year to an all-time high of 88¢/lb as of 10 December, Argusdata showed. The MWTP rose by 56pc to $2.1665/lb in the same timeframe, with gains in the premium far outpacing increases in the London Metal Exchange (LME) cash settlement — the other component that comprises the MWTP. Buying spreads, as a result, dropped from an average of 80.8pc in January to an average of 45.3pc in November — reaching a low of 44.4pc on 29 October — after supply tightness eased and consumers widened discounts, saying underlying fundamentals did not support paying more for UBCs just because intrinsic values had risen, which several viewed as artificial increases. That sentiment from buyers has been reflected in outright prices for UBCs, which fell by a smaller margin — down by 13¢/lb, or by 12pc, to 98.5¢/lb at the end of November — compared to buying spreads. Still, that divergence in discounts led to a significant discrepancy between what rolling mills had to pay brokers and at what levels they could purchase UBCs in the spot market. This compelled consumers to take on more volumes from the trade or under shorter-term supply deals in 2026 in efforts to avoid a repeat of 2025. Consumers have already entered the spot market for significant tonnage for January, with one rolling mill having already closed out its next-month position and another procuring north of 40 truckloads so far. Buyers at the consumer level say they want to purchase more UBCs on the spot market to help fill the balance of their needs despite lower contract volumes. Sources noted that most rolling mills' overall consumption forecasts for 2026 are relatively stable based on downstream demand for beverage-can sheet. Adding to upward pressure on UBC demand are Section 232 import tariffs, which currently stand at 50pc. Consumers have sought to utilize more scrap for their melts to help offset elevated costs for P1020 and other grades of primary aluminum — a trend that most expect to persist next year. Beverage-can sheet can utilize a higher percentage — as high as 90pc, Argus understands — of scrap as an input compared to other flat-rolled products, precluding the need for rolling mills to use primary aluminum in their melts. Sources have signaled that first-quarter contracts with rolling mills have been locked in between 51-54pc of the MWTP, with buying spreads for annual deals that have been concluded coming in between 55-62pc broadly — depending on volume and the quality of UBCs. With those discounts, buyers effectively have priced in expectations that US tariffs on primary aluminum will persist throughout the year. Some market participants are optimistic that negotiations on a new US-Mexico-Canada free trade agreement will result in a tariff carveout for aluminum from top US supplier Canada. Still, there have been no concrete indications that such a reduction, which likely would spur a drop in the Midwest premium, will come. Challenges to 2026 consumption While most consumers' indicated demand levels have not changed significantly, suppliers and brokers are monitoring developments with two major rolling mills to see how certain constraints may impact industrywide consumption for UBCs in 2026. Aluminum-roller Novelis' hot-rolling mill outage at its facility in Oswego, New York, which primarily produces flat-rolled products for the automotive industry, has forced the company and its domestic competitors to scramble to meet automakers' needs. Those efforts have included shifting manufacturing lines away from other end markets to focus on producing automotive-grade sheet or hot-rolled coil, also known as "hot band". Sources also noted that new entrant Aluminum Dynamics' (ADI) demand for UBCs may not be as significant for next year as market participants originally thought when the company first announced its 650,000 metric tonne (t)/yr plant in Columbus, Mississippi. ADI planned to build satellite facilities in Arizona and Mexico to supply Columbus, with those sites recycling UBCs to melt into slab for production of beverage-can sheet. The Arizona plant has yet to be built, with the company contending with locals who have been fighting its construction, while the Mexico facility is operational, but products from the site have been subject to import tariffs, sources said. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: European EO faces structural oversupply

25/12/24

Viewpoint: European EO faces structural oversupply

Amsterdam, 24 December (Argus) — Europe's ethylene oxide (EO) market is heading into 2026 with supply outstripping demand. Producers are shifting towards merchant sales rather than captive use for commoditised derivatives. Downstream derivatives such as ethylene glycols and ethanolamines remain under pressure from imports and weak regional demand. Suppliers are chasing purified EO sales, which offer better returns and face little competition from overseas players. EO's hazardous nature makes it difficult to transport, keeping supply local and largely tied to long-term contracts. Merchant EO demand in Europe is flat at best. This is increasing competition for volumes among producers and putting pressure on "adders" in formula-based contracts for next year. Surfactants, which account for most merchant EO consumption, have held up better than other downstream sectors, supported by steady demand from personal care, household and industrial cleaning applications. But polyether polyols remain exposed to sluggish construction and automotive markets, while cautious consumer confidence is curbing demand for durable goods. Both sectors also face pressure from competitively priced imports, further weighing on domestic margins. Despite the challenging market environment, EO-related capacity rationalisation has been limited in Europe this year. Clariant confirmed in September that it will decommission one of its two EO units at Gendorf, Germany, by the end of the year. But the closure is not expected to tighten merchant EO availability, as the unit is linked to ethylene glycols production rather than purified EO, market participants said. Ineos is investing €250mn to modernise its steam cracker at Lavera, France — a site previously viewed as vulnerable — signalling confidence in the long-term viability of the complex, including EO and derivatives operations. European EO producers' resilience could be tested in 2026. The European Commission has proposed eliminating customs duties on a wide range of US industrial goods under the EU-US trade deal, a move broadly supported by EU member states. The proposal still needs European Parliament approval, but if implemented it could weigh on domestic producers' profitability. EU countries added a bilateral safeguard mechanism to the draft law, to be activated if significant import increases and serious injury to domestic producers follow tariff concessions. The US is a major supplier of EO derivatives, including ethylene glycols, ethanolamines and E-series glycol ethers to the EU, and zero tariffs could open up arbitrage opportunities for spot imports more frequently. Monoethylene glycol will remain somewhat protected from an influx of imports by existing anti-dumping duties on US and Saudi material, effective until 16 November 2026. European producers are preparing for a sunset review of the measures, and any changes could quickly reshape the competitive landscape. Market participants are also watching the impact of other anti-dumping investigations in the polyethylene terephthalate (PET) value chain — probes into PET imports from Vietnam, with pre-disclosure expected on 24 December, and into purified terephthalic acid (PTA) imports from South Korea and Mexico due to be finalised in 2026. The commission imposed definitive anti-dumping duties on Chinese PET imports in April 2024, but this has done little to stem the flow of low-cost imports into Europe, with trade shifting to other origins instead. Protectionist measures offer temporary relief but do not address Europe's structural disadvantages — high energy costs and carbon reduction obligations. European MEG demand is shrinking because of ongoing downstream closures, with a Dutch facility permanently closed in 2024 and a Spanish producer ceasing output in 2025 amid high regional production costs and pressure from imports. Further PET capacity shutdowns are anticipated next year if challenging market conditions persist. By Liana Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oversupply, rains drag Indian HRC prices lower in 2025

25/12/24

Oversupply, rains drag Indian HRC prices lower in 2025

Mumbai, 24 December (Argus) — Domestic Indian hot-rolled coil prices started 2025 on a strong note, but extended monsoons and abundant supply resulted in a steady decline from May, pushing prices below levels seen at the start of the year. The monthly average of the domestic 2.5-4.00mm HRC price assessed by Argus rose to 51,630 rupees/t ($569/t) in May, excluding goods and services tax (GST), from Rs47,360/t in January. The average price for December was Rs45,775/t as of 12 December. Indian HRC prices rose sharply between the end of February and early May on speculation around safeguard duties and supply shortages driven by mill maintenance work. India imposed 12pc provisional safeguard duties from 21 April, which led to a moderation in imports, particularly from China. Despite lower imports HRC prices began a steady descent from around mid-May. This was because the monsoon season started early and went on for longer than expected. Demand was slow to recover after monsoons, which along with surplus supply stemming from expanded domestic capacities kept prices under pressure in the final quarter of the year. As domestic demand struggled to catch up with supply, Indian producers grappling with rising inventories looked for more export opportunities in the second half of 2025. Indian HRC was exempt from anti-dumping duty in the EU, which had resulted in a surge in European demand at the end of March, but activity dwindled around August because of summer holidays in the bloc. But from September, Indian mills were able to sell sizeable volumes into Europe, as buyers began stockpiling ahead of changes related to the carbon border adjustment mechanism (CBAM) and safeguard quotas expected in 2026. But prices remained under pressure as mills were forced to lower offers to entice buyers amid uncertainty related to CBAM taxes. While much of the focus was on the Europe during this period, Indian suppliers also sold some quantities to the Middle East and Vietnam. But these sales were concluded at much lower price levels, compared with those in the EU, because of competition from China in those markets. India became a net exporter of finished steel in October and November as exports surged and imports dropped on safeguard measures. European buying interest waned again towards the end of the year as buyers scrambled to understand CBAM taxes after draft documents circulated in the market. India exhausted its fourth-quarter HRC quota in November, and the possibility of the January-March quota also getting utilised quickly meant buyers remained cautious. Rumours that the post-safeguard quota changes could come into effect from April instead of July also sapped interest in Indian HRC. The monthly average cfr Europe price for Indian HRC fell from $630/t from April to $560/t as of 12 December. The average fob India HRC price for December stood at $477.50/t, declining from an average of $570/t in April. Indian exporters' focus has now shifted to Vietnam, a market where bids have been declining over the past few months. Indian suppliers could target alternate markets for HRC sales in 2026 as CBAM and quota changes impede shipments to Europe, market participants said. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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