Norfolk Southern replaces CEO with CFO

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24/09/12

Eastern Class I railroad Norfolk Southern (NS) has appointed a new chief executive, replacing former executive Alan Shaw after determining he violated company policies by having a consensual relationship with the company's chief legal officer.

NS' board announced late Wednesday that it had promoted chief financial officer Mark George to replace Shaw. The board said Monday it was investigating Shaw for potential misconduct in actions not consistent with NS' code of ethics and policies, but did not provide details.

The railroad yesterday clarified that Shaw's departure was not related to the railroad's "performance, financial reporting and results of operations".

Instead, the board voted unanimously to terminate Shaw with cause, effective immediately, for violating policies by engaging in a consensual relationship chief legal officer Nabanita Nag. She was also dismissed by NS.

Shaw worked at NS for 30 years and was appointed chief executive in May 2021, following six years as chief marketing officer.

Earlier this year he led NS through a proxy fight with a group of activist investors that sought his replacement. The overall effort failed but the challengers secured three seats on the board. The investors had been displeased with the railroad's financial performance and "tone deaf response" to the February 2023 derailment in East Palestine, Ohio.

New chief executive George had served as NS' chief financial officer since 2019. Prior to that, he held roles at several companies including United Technologies Corporation and its subsidiaries.

"The board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders," NS chairman and former Canadian National chief executive Claude Mongeau said.

By Abby Caplan

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25/04/22

South Korea's LGES exits Indonesia's $8.4bn EV project

Singapore, 22 April (Argus) — Top South Korean battery firm LG Energy Solution (LGES) has pulled out of Indonesia's Grand Package project, which is supposed to be an integrated electric vehicle (EV) battery project worth 142 trillion Indonesia rupiah ($8.4bn). "Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia [Grand Package] GP project," LGES told Argus on 22 April. The mega project was in the making since 2019. It involves an LG consortium that consists of multiple South Korean firms including LGES, LG Chem, LX International and Posco Future M, major Chinese cobalt refiner and nickel-cobalt-manganese precursor producer Huayou, Indonesian state-controlled mining firm Aneka Tambang (Antam) as well as consortium Indonesia Battery. Original plans included building a $1.1bn battery cell plant and were supposed to be followed by a smelter, precursor and cathode plant as well as "mining cooperation" with Antam. "However, we will continue to explore various avenues of collaboration with the Indonesian government, centering on the Indonesia battery joint venture, HLI Green Power," the firm added. The HLI Green Power is LGES' 10 GWh/yr Indonesian battery production joint venture with South Korean conglomerate Hyundai Motor, which started mass production last April. LGES earlier this year also invested in Chinese battery cathode maker Lopal Tech's lithium iron phosphate plant in Indonesia . LGES last year said it plans to reduce its dependence on the EV battery business and has signed multiple energy storage system battery supply deals so far this year, including with Taiwanese electronics manufacturing firm Delta Electronics and Polish state-controlled utility PGE . By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India imposes 12pc safeguard duty on flat steel imports

25/04/22

India imposes 12pc safeguard duty on flat steel imports

Mumbai, 22 April (Argus) — The Indian government has imposed a 12pc provisional duty on certain flat steel imports for 200 days to shield the domestic steel industry. The duty, applicable from 21 April, was implemented following a recommendation by the Directorate General of Trade Remedies in March. It covers products under HS codes 7208, 7209, 7210, 7211, 7212, 7225 and 7226, the ministry of finance said in a notification. As recommended by the DGTR, the duty is only applicable if the import price is below a certain threshold, which is different for each product. For hot-rolled coils (HRC), the safeguard duty will not be applicable if the product is imported at or above $675/t cif, while the threshold is set at $824/t cif for cold-rolled coils. Domestic Indian steelmakers in 2024 sought protection from lower-priced imports from China and other Asian suppliers, which pushed local HRC prices to multi-year lows last year. The DGTR subsequently launched a safeguard investigation in December 2024. HRC prices rebounded last month, partly because of rumors and speculation around potential safeguard measures, and received a further boost following the duty proposal on 18 March. The Argus weekly Indian domestic HRC assessment for 2.5-4mm material reached over an eight-month high of 52,100 rupees/t ($612/t) ex-Mumbai, excluding goods and services tax, on 4 April, increasing by 9pc compared to the end of February. Sentiment shifted over the last few weeks because of escalating US-China trade tensions, with the assessment falling to Rs51,000/t on 17 April as restocking interest cooled. Surging imports pose a threat to the domestic industry and there is a need to implement provisional safeguard measures immediately, the DGTR said in its recommendations. India remained a net importer of finished steel in the April 2024-March 2025 fiscal year, with inflows increasing by 15pc on the year to 9.5mn t, according to ministry data. China has been a major supplier, owing to its weak domestic market, while imports from countries which India has a free-trade agreement with — such as South Korea and Japan — have also risen. South Korea was the top supplier to India during April 2024-February 2025, and accounted for 30pc of its total finished steel imports. Among developing countries, only China and Vietnam will be subject to safeguard duties. "Unchecked imports — especially from countries with significant excess capacity — threaten domestic manufacturing, employment, and future investments," said Indian producer Tata Steel's chief executive T.V. Narendran. "This decision will help restore fair competition, ensure the industry's long-term sustainability, and support India's vision of a self-reliant and globally competitive steel sector," Narendran added. The trade market reaction to the safeguard duty implementation was mixed, with some saying mills could take a cautious approach as buyers have been resisting latest price hikes, while others said steelmakers were likely to hike prices immediately. Indian steel mills increased prices by about Rs4,000/t following rumors around safeguards and the duty proposal, and now a further uptrend in prices is expected, an international steel trader said. A local steel distributor said steel mills would definitely raise prices, but in May instead of this month. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US PVC demand outlook softens on weak housing

25/04/21

US PVC demand outlook softens on weak housing

Houston, 21 April (Argus) — US polyvinyl chloride (PVC) participants are downgrading initial demand estimates from nominal growth to more stable expectations in the coming months because of downbeat housing variables. Many US PVC participants throughout March and April said early signs from housing data and customer sentiment did not point to a robust housing construction season in the coming months. PVC buyers have been hesitant to build inventory under such conditions, further slowing consumption because many are unsure when or if end-user demand will support initial purchases. Privately-owned housing permits were at a seasonally-adjusted annual rate of 1.482mn units in March, according to data from the US Census Bureau and the Department for Housing and Urban Development (HUD). While March permits rose by nearly 2pc from February, they fell by less than 1pc from year-ago levels. Single family permits stood at 978,000 units, down by 2pc from the prior month and lower by less than 1pc from the same time last year. Housing starts in March were at a seasonally-adjusted annual rate of 1.324mn units, about 11pc below February rates but nearly 2pc higher than a year earlier. Single-family starts declined by about 14pc to a 940,000 unit rate from the prior month. The latest builder sentiment survey for April maintained a cautious view for the single-family homes market, reversing nominally weaker sentiment from March, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Sentiment, though, remains well below the confidence seen at the start of the year, underpinning a weakening market. PVC participants are increasingly concerned that current and future tariffs imposed by President Donald Trump on critical trade partners will re-trigger inflation and thwart any future interest rate cuts by the Federal Reserve. Lower interest rates are largely regarded by PVC players as a bullish demand variable, especially in the housing sector. Federal Reserve chairman Jerome Powell did not ease market concerns last week, saying tariffs are likely to contribute to "higher inflation and slower growth" — or stagflation — and added markets were struggling "with a lot of uncertainty." Powell added that tariffs could challenge the Federal Reserve's dual mandate of maintaining price stability while fostering maximum job growth, leaving policymakers to wait for greater clarity on economic impacts before making any adjustments to interest rates. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IMO incentive to shape bio-bunker choices: Correction

25/04/21

IMO incentive to shape bio-bunker choices: Correction

Corrects B30 pricing in paragraph 5. New York, 21 April (Argus) — An International Maritime Organization (IMO) proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward. The price of these credits will help determine whether B30 or B100 becomes the preferred bio-bunker fuel for vessels not powered by LNG or methanol. It will also influence whether biofuel adoption is accelerated or delayed beyond 2032. At the conclusion of its meeting earlier this month the IMO proposed a dual-incentive mechanism to curb marine GHG emissions starting in 2028. The system combines penalties for non-compliance with financial incentives for over-compliance, aiming to shift ship owner behavior through both "stick" and "carrot" measures. As the "carrot", ship owners whose emissions fall below the IMO's stricter compliance target will receive surplus credits, which can be traded on the open market. The "stick" will introduce a two-tier penalty system. If emissions fall between the base and direct GHG emissions tiers, vessel operators will pay a fixed penalty of $100/t CO2-equivalent. Ship owners whose emissions exceed the looser, tier 2, base target will incur a penalty of $380/t CO2e. Both tiers tighten annually through 2035. The overcompliance credits will be traded on the open market. It is unlikely that they will exceed the cost of the tier 2 penalty of $380/t CO2e. Argus modeled two surplus credit price scenarios — $70/t and $250/t CO2e — to assess their impact on bunker fuel economics. Assessments from 10-17 April showed Singapore very low-sulphur fuel oil (VLSFO) at $481/t, Singapore B30 at $740/t, and Chinese used cooking oil methyl ester (Ucome), or B100, at $1,143/t (see charts). If the outright prices remain flat, in both scenarios, VLSFO would incur tier 1 and tier 2 penalties, raising its effective cost to around $563/t in 2028. B30 in both scenarios would receive credits putting its price at $653/t and $715/t respectively. In the high surplus credit scenario, B100 would earn roughly $580/t in credits, bringing its net cost to about $563/t, on par with VLSFO, and more competitive than B30. In the low surplus credit scenario, B100 would earn just $162/t in credits, lowering its cost to approximately $980/t, well above VLSFO. At these spot prices, and $250/t CO2e surplus credit, B100 would remain the cheapest fuel option through 2035. At $70/t CO2e surplus credit, B30 becomes cost-competitive with VLSFO only after 2032. Ultimately, the market value of IMO over-compliance credits will be a major factor in determining the timing and extent of global biofuel adoption in the marine sector. By Stefka Wechsler Scenario 1, $70/t surplus credit $/t Scenario 2, $250/t surplus credit $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Calif. refinery resupply rule vote postponed

25/04/21

Calif. refinery resupply rule vote postponed

Houston, 21 April (Argus) — California regulators delayed a vote this week on new refinery resupply rules meant to mitigate retail gasoline price spikes, but refiners are still wary that the state is moving to make the most regulated market in the US even tougher. The California Energy Commission (CEC) had scheduled a vote on refinery resupply rules at its 24 April business meeting but said the meeting is now postponed to allow for additional feedback and consultation with stakeholders. The draft rules under consideration would require refiners to submit resupply plans to the state at least 120 days before any planned maintenance in September and October that would cause California specification gasoline production to decline by 20,000 b/d for at least 21 days or a total of more than 450,000 bl. Large spikes in California prices occurred in the fall of 2022 and 2023. The commission is also planning rulemaking this year on minimum inventory requirements to avoid price spikes in the event of unplanned events, as well as possible rules on setting a refiner margin cap. The timing of the new regulations is precarious, as two major refineries in the state are planning to shut operations within a year. Independent refiner Valero said on 16 April it is planning to shut or re-purpose its 145,000 b/d refinery in Benicia, California and continues to evaluate strategic alternatives for its other refinery in the state – the 85,000 b/d Wilmington facility. In addition, Phillips 66 is planning to shut its 139,000 b/d Los Angeles refinery later this year. Effort to stop gasoline price spikes The California rules stem from two pieces of legislation signed by California governor Gavin Newsom known as AB X2-1 and SB X1-2, part of a multi-year effort to mitigate price volatility in the state, after some of the highest gasoline prices ever recorded in the fall of 2022. US refiners have long opposed the new regulations seeing them as a political attack on the industry, conflicting with other laws and the latest example of an increasingly difficult regulatory environment in the state. The CEC has conducted workshops to help draft the rules with the participation of labor groups, the refining industry, environmental justice groups, community advocates, and the public. The industry was largely represented by the Western States Petroleum Association (WSPA). WSPA told the commission that the resupply rule could conflict with existing statutory requirements for refiners not to withhold fuel from the market and could result in market distortions and undesirable price impacts. The rules could also make it hard for Arizona and Nevada to secure needed supplies in the face of regulations expressly favoring Californians' access to fuel, WSPA said. The rules could also force refiners to use "uneconomic strategies" to secure non-spot market resupplies and additional capital to guarantee inventories that could potentially lead to higher gasoline prices, the group said. AB X2-1 forbids the CEC from adopting any regulation "unless it finds that the likely benefits to consumers from avoiding price volatility outweigh the potential costs to consumers." WSPA said it is concerned that the CEC does not "have the facts in front of it to legitimately support such a finding" with respect to imposing the resupply requirement. Under the draft resupply rules, refiners must show they can secure sufficient supply to ensure that lost gasoline production anticipated during the maintenance does not adversely affect the California transportation fuels market. The plan must show a resupply volume of at least 85pc of the anticipated lost gasoline production during the maintenance and the resupply volumes must match the seasonal specification of the lost production. The resupply plans could include imports and each barrel of resupply obtained by imports will count as 1.3 barrels of resupply. In addition, a plan that includes resupply through the purchase or storage of gasoline blendstocks or gasoline blending components must explain how such materials will result in an equivalent amount of California specification gasoline. Non-compliance could carry a civil penalty of $100,000-$1mn per day. Refineries with capacity under 30,000 b/d are exempt from the resupply regulation. The rules would apply to five major refiners operating in the state — Chevron, PBF Energy, Phillips 66, Valero and Marathon. Phillips 66, however, will be closing its Los Angeles refinery by October and converted a refinery in Rodeo, California, to renewable fuels in 2024. Since the 1980s, 29 refineries in California have been shut or integrated with other refineries that eventually closed or converted to renewable fuels production, according to CEC data. About half of the shut refineries were smaller operations, producing less than 20,000 b/d. Looking at options The CEC caused a stir in August 2024 when it released its Transportation Fuels Assessment, which examined policy options to mitigate price spikes and transition away from fossil fuels including the state of California buying and owning refineries. The assessment said this could range from one refinery to all refineries in the state. But the document also highlighted problems with such a plan, including the high cost of buying refineries, significant legal issues, and the fact that the state has no experience managing complex industrial processes. California is not currently pursuing this option, state officials said. Another idea in the Transportation Fuels Assessment involved state-owned product reserves in the north and south of California to allow rapid deployment of fuel when needed. This could include "up to several hundred thousand barrels." The CEC and the California Air Resources Board are drafting a formal Transportation Fuels Transition Plan which will serve as a road map to move away from fossil fuels. A draft of the report will be released later this year. The Transportation Fuels Assessment and the Transportation Fuels Transition Plan were mandated under SB X1-2. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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