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Potential strike threatens Vancouver port again

  • : Biomass, Crude oil, Fertilizers, Metals
  • 24/05/13

A labour dispute at the Canadian port of Vancouver could result in another work stoppage, less than a year after a strike disrupted the flow of more than C$10bn ($7.3bn) worth of goods and commodities ranging from canola and potash to coking coal.

Negotiations between the British Columbia Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Ship and Dock Foremen Local 514 union have stalled as the two sides try to renew an agreement that expired on 1 April 2023.

A 21-day "cooling-off period" concluded on 10 May, giving the union the right to strike and the employers association the right to lock out the workers. A vote and 72-hour notice would first need to occur before either action is taken.

The BCMEA filed a formal complaint to the Canada Industrial Relations Board (CIRB) the same day, which had to step in last year in another dispute.

The BCMEA locked horns with ILWU Canada over a separate collective agreement in 2023 leading to a 13-day strike by the union in July. This disrupted the movement of C$10.7bn of goods in and out of Canada, according to the Greater Vancouver Board of Trade.

Vancouver's port is the country's largest — about the same size as the next five combined — and describes itself as able to handle the most diversified range of cargo in North America. There are 29 terminals belonging to the Port of Vancouver.

Terminals that service container ships endured the most significant congestion during last year's strike. Loadings for potash, sulphur, lumber, wood pellets and pulp, steel-making coal, canola, copper concentrates, zinc and lead concentrate, diesel and renewable diesel liquids and some agri-foods were also disrupted.

The Trans Mountain-operated Westridge Marine Terminal responsible for crude oil exports on Canada's west coast was unaffected.

A deal was eventually reached on 4 August.

The strike spurred on proposed amendments to legislation in Canada that would limitthe effect of job action on essential services. A bill introduced in Canada's Parliament in November would update the Canada Labour Code and CIRB Regulations accordingly. The bill has been progressing through the House of Commons, now having completed the second of three readings.


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24/07/26

Eni confident on 2024 output, but Libya project slips

Eni confident on 2024 output, but Libya project slips

London, 26 July (Argus) — Executives at Italy's Eni are confident it will achieve the upper end of its 1.69mn-1.71mn production guidance for this year, but start-up of a key Libyan project is set to slip from 2026 into 2027. In a presentation of second-quarter earnings today, A&E Structure was one of two Libyan projects on a list of Eni's upcoming start-ups through to 2028 that will deliver some 740,000 b/d of oil equivalent (boe/d) of net production to the company. A&E Structure is a 160,000 boe/d gas development that will include some 40,000 b/d of liquids production, mainly condensate. A&E Structure is central to Libya's ability to sustain gas exports to Italy, which have dropped in recent years on a combination of rising domestic consumption and falling production. Supplies through the 775mn ft³/d Greenstream pipeline hit their lowest since the 2011 revolution in 2023, averaging 250mn ft³/d. The slide has continued since, with year-to-date volumes of around 160mn ft³/d on track for a record low. Eni's other upcoming Libyan project — the Bouri Gas Utilisation Project development that aims to capture 85mn ft³/d of gas at the 25,000 b/d offshore Bouri oil field — had already been pushed back from 2025 to 2026. For 2024 Eni expects to be "at the upper boundary of its guidance", according to chief operating officer of Natural Resources Guido Brusco. The company had a strong first half, during which output was 1.73mn boe/d — 5pc up on the year — thanks to good performance at assets in Ivory Coast, Indonesia, Congo (Brazzaville) and Libya. Brusco said Eni is in the process of starting up its 30,000 boe/d Cassiopea gas project in Italy, with first production expected next month, and the 45,000 b/d second phase of the Baleine oil project in Ivory Coast is expected to start by the end of this year. At Baleine, Brusco confirmed the two vessels to be used at phase two "will be in country in September and, building on the experience of phase one, we expect a couple of months of final integrated commissioning" before first oil. Eni also said today it would raise its dividend for 2024 by 6pc over 2023 to €1/share, and confirmed share repurchases this year of €1.6bn. It said there is potential for an additional buyback of up to €500mn, which is being evaluated this quarter. Eni's debt gearing is scheduled to fall below 20pc by the end of the year. Chief financial officer Francesco Gattei said these accelerated share buybacks would be possible if divestment deals are confirmed. By Jon Mainwaring and Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India's Fact seeks 40,000t of 15-15-15 in tender


24/07/26
24/07/26

India's Fact seeks 40,000t of 15-15-15 in tender

London, 26 July (Argus) — Indian fertilizer importer Fact has issued a tender to buy two 20,000t lots of 15-15-15. The tender will close on 9 August, and Fact intends to open offers on the same day. The importer requests delivery of one cargo to Kakinada and the other to Tuticorin, both on India's east coast. In both cases, Fact seeks a laycan at the discharge ports of 15-31 October. In late May, Fact bought two 30,000t lots of 15-15-15 against a tender , paying $342/t cfr duty unpaid, with credit terms of 30 days, for Russian product. Prices around the latest tender will be higher, following a firming of the market. Fact's request marks the second major Indian tender for complex fertilizers this week, after fellow importer HURL requested 30,000t lots of 20-20-0+13S . By David Maher Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Blast furnace works cut S Korea's Posco 2Q steel output


24/07/26
24/07/26

Blast furnace works cut S Korea's Posco 2Q steel output

Singapore, 26 July (Argus) — South Korean steelmaker Posco reported lower crude steel output and sales in the second quarter because of refurbishments at its Pohang blast burnace, but a higher operating profit. Posco's crude steel production dropped to 8mn t over April-June, from 8.66mn t in the first quarter and 8.85mn t a year earlier, the company said in an earnings call on 25 July. Sales volume also dipped to 7.86mn t, from 8.23mn t in the previous quarter and 8.48mn t a year earlier. The firm's utilisation rates fell to 79.1pc in the second quarter, from 85.6pc in the first quarter and 87.3pc a year earlier. Posco began maintenance and modernisation of its No.4 blast furnace at Pohang in late April, which has a capacity of around 5.3mn t/yr. But production resumed at the end of June, raising its scrap consumption as reflected in its resumption of regular weekly purchases of Japanese scrap after a three-month halt. The group's combined steel revenue, including Posco and overseas steel facilities, stood at 15.4 trillion won ($11.1bn) in the second quarter. This was largely steady from the previous quarter but down from W16.5 trillion a year earlier. Combined steel operating profit stood at W497bn in the second quarter, up from W339bn in the first quarter, but less than half of W1 trillion a year earlier. Posco reported higher mill margins as the cost of raw materials dropped and sales price increased. But overseas upstream operations reported losses given an influx of cheap imports into the southeast Asian market and lower sales prices. Battery, other expansion plans Revenue from secondary battery unit Posco Future M fell by 20pc on the quarter and 23pc on the year to W915bn. Operating profit stood at W3bn, down from W38bn a quarter earlier and W52bn a year earlier. Posco, while citing a difficult battery materials industry over April-June, said during the earnings call that it is "closely monitoring demand fluctuations." The firm will pace its investment, but it will "not lose out" on any opportunity to invest in essential resources such as lithium whose prices have "hit rock bottom." Posco flagged the approaching US presidential election and shifting strategies of major automakers as factors that will continue affecting the EV supply chain. This was echoed by South Korean battery maker LG Energy Solution , which expects global EV market growth to come in at slightly over 20pc this year, down from 36pc a year earlier. Posco's first domestic lithium hydroxide plant, located at the Yulchon Industrial Complex in Gwangyang, with a capacity of 21,500 t/yr aims to start full operations in February 2025. It will be operated by Posco-Pilbara Lithium Solution, a joint venture between Posco and Australia's lithium miner Pilbara Minerals. The company also expects to finish building a second plant at the same location with similar capacity in September whose full operations will begin in September 2025. Its Argentinian lithium operations will have a total capacity of 50,000 t/yr in the near term, split between phase 1 and phase 2, which will start full operations in April 2025 and June 2026, respectively. Trading firm Posco International also reported that the final stage 4 expansion of its Myanmar offshore gas field will start in July, with about 4mn t/yr of By Tng Yong Li and Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU could launch 'other countries' HRC dumping probe


24/07/25
24/07/25

EU could launch 'other countries' HRC dumping probe

London, 25 July (Argus) — The European Commission soon could initiate a dumping investigation on some exporters selling into the 'other countries' quota for hot-rolled coil (HRC), according to multiple market sources. The 'other countries' quota in recent quarters has consistently filled rapidly upon resetting, and this pressure has been intensified by rising Chinese exports since August of last year. Some key 'other countries' sellers have seen the volumes they take from China balloon as a result. Vietnam bought more than 4.2mn t from China in the first six months of this year, compared with about 6mn t in the whole of 2023. China's increased exports has sparked talk that both India and Vietnam may start anti-dumping duty investigations. When announcing its 15pc cap on countries selling into the 'other countries' quota, the commission specifically alluded to the increase in Chinese exports affecting trade flows. Vietnam, Egypt, Japan and Taiwan are by far the largest sellers into the 'other countries' quota, and all of the countries initially exceeded their 141,849t cap quickly when the new quotas took force on 1 July. In April, before the cap was implemented, these four countries amounted for more than half of the 1.4mn t imported by the EU. The 'other countries' quota has essentially been reduced from 940,000 t/quarter to less than 600,000 t/quarter given the new cap. Sources suggested duties could be applied retroactively if the commission finds that material has been dumped. They also suggested it could be difficult to show dumping in some countries, such as Vietnam and Egypt, where domestic prices are often below export levels. A leading producer was gathering information on Egyptian cargoes arriving at EU ports in recent months, a trading firm said. The commission refused to comment on any potential investigation. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

BayWa suspends 2024 profit forecast over restructuring


24/07/25
24/07/25

BayWa suspends 2024 profit forecast over restructuring

London, 25 July (Argus) — German agricultural group BayWa on Wednesday suspended its full-year profit forecast due on 8 August, citing ongoing restructuring. It posted a preliminary revenue of €10.7bn ($11.6bn) for the first half of the year, down by 15pc from €12.6bn a year ago. BayWa's first-half 2024 preliminary earnings before interest, tax, depreciation and amortisation stood at €149.5mn, less than half of the €322.1mn earned in the same period last year. BayWa said it continues to be in constructive talks with its financing partners, adding that it also has postponed publication of the final half-yearly results to 27 September, citing impairment reviews. The company commissioned a restructuring report on 12 July in response to a "strained financing situation". The Munich-headquartered BayWa Group operates in the fields of energy, agriculture — including fertilizers — and building materials. By Suzie Skipper Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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