Higher coal may drive mid-sulphur coke demand

: Petroleum coke
24/10/15

The premium for mid-sulphur petroleum coke on an fob US Gulf basis may widen again as higher coal prices push Turkish cement makers to this grade in order to remain within overall sulphur limits.

Mid-sulphur coke could begin to be more actively traded in Turkey as buyers there seek to reduce the amount of coal in their fuel mix, with coke becoming much more price competitive, a cement producer said.

Most Turkish cement plants can now use higher sulphur coke, but in order to do so, they must use a higher proportion of coal to meet emissions limits. And the number of coal trades has fallen sharply in the second half of the year.

Coke's discount to coal on a delivered basis has widened as coke prices have steadily fell and coal prices rose. Cfr Turkey 5.5pc sulphur dry basis coke reached a 38pc discount to coal on a heat-adjusted basis as of Argus' last weekly fuel-grade coke assessment, compared with a 31pc discount a month before and a 10pc discount during the same week last year. Both mid- and high-sulphur coke in Turkey are now at their widest discount to coal since 16 March 2022.

Cement plants were already starting to prefer mid-sulphur over higher-sulphur material because the premium has narrowed to a multi-month low. Since the start of October, mid-sulphur coke's premium to high-sulphur coke has remained at $2.50/t in Turkey, the lowest since 27 March.

The 5.5pc sulphur coke's average premium to 6.5pc sulphur on a cfr Turkey basis declined by 65pc on the year from January-September, to $4.98/t. This is slightly narrower than the premium for 4.5pc as received coke on an fob US Gulf basis, but this has also traded at a historically narrow premium to high-sulphur coke so far this year. The fob Gulf premium averaged $5.47/t year-to-date through September, falling by more than half from the same nine-month period last year. And last week it narrowed to its lowest since late August, after the 4.5pc sulphur assessment fell by $1.50/t on the week while 6.5pc sulphur prices held steady for the first week since 21 August, as spot demand emerged.

The lower premium is a result of weak demand for mid-sulphur coke outside of the Mediterranean as well as higher supply of 4.5pc sulphur Venezuelan coke over the past two years. This coke still attracts demand in Turkey, India and China despite US sanctions on Venezuela's oil industry. But Chinese demand for mid-sulphur fuel coke has sputtered since last year as stocks there have climbed, leading Mediterranean buyers to lower bids, feeling that suppliers have limited options elsewhere.

Some cement plants in Turkey have been lowering bids for 5.5pc sulphur coke even further to below $80/t cfr, basically in line with high-sulphur prices, which were assessed at $77.50/t last week. Two cement plants already achieved this price level for 5.8pc sulphur max coke earlier this month, purchasing a joint cargo at about $77-78/t cfr.

It remains to be seen if the stronger interest in mid-sulphur coke from Turkish buyers reverses the trend of a falling spread between the two grades of coke. At least two firms this week are seeking seaborne mid-sulphur coke cargoes for November-December loading.

By Alexander Makhlay

Mid- to high-sulphur coke premiums $/t

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25/02/02

Trump tariffs to hit North American energy trade

Washington, 2 February (Argus) — US president Donald Trump is set to disrupt the integrated North American energy market with tariffs of 10pc on Canadian energy imports and 25pc on Mexico-sourced energy commodities, effective on 4 February. Trump on Saturday issued executive orders that would impose taxes of 25pc on all imports from Mexico and 25pc on all non-energy imports from Canada, effective on 4 February. Most energy commodities imported from Canada would be subject to a lower, 10pc tariff. Imported goods in transit before 12:01am ET on 1 February would not be subject to those levies. The Canada energy exemption applies to "crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water and critical minerals". Trump and the White House did not explain why he made a slight concession on the Canadian energy commodities. The US-Canada energy trade is particularly vulnerable to tariffs, for both sides. More than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Conversely, many refineries in the US midcontinent have no practical alternative to the Canadian crude. Industry group the American Petroleum Institute said on Saturday that it would "continue to work with the Trump administration on full exclusions that protect energy affordability for consumers, expand the nation's energy advantage and support American jobs". Trump imposed tariffs on Canada and Mexico, as well as on China, by declaring a "national emergency" related to alleged inability of those countries to stem the flow of migrants and illegal drug fentanyl to the US. The White House in previous decades has used emergency declarations to impose sanctions against foreign countries, and US courts have stayed away from challenging the executive branch on such declarations and their economic applications. The choice of an emergency declaration also is meant to prevent the US Congress, which retains primary authority over US international trade, from intervening legislatively to remove tariffs. Congressional Republicans, at any rate, quickly hailed Trump's decision. By contrast, Democratic lawmakers and state officials denounced the tariffs and cited inflationary effects of the import taxes. Tit for tat Canada's prime minister Justin Trudeau said on Saturday that his country's energy exports to the US would factor in with other retaliatory measures, possibly in the form of export taxes. "There are a number of different industries and regions of the country that can have greater leverage over the US," Trudeau said. "One thinks of the oil industry for example." Alberta premier Danielle Smith said on Saturday that she would oppose efforts to ban or to tax exports to the US. Trudeau said he would hold consultations with regional and business leaders before taking any counter-measures. But he added, "no one part of the country should be carrying a heavier burden than another." Trudeau said that Canada would apply a 25pc import tax on C$30bn ($21bn) worth of imports from the US on 4 February, followed by a 25pc tariff on an additional C$125bn worth of imports on 25 February. Denouncing Trump's punitive tariffs and his frequent derogatory comments about the US' northern neighbor, Trudeau, in comments directed at a US audience, said: "From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you." Mexico's president Claudia Sheinbaum likewise criticized Trump's action, characterizing as "slander" the text of his executive orders, which alleged that Mexico's government was an instrument of the country's drug cartels. But Mexico did not unveil specific countermeasures against Trump's tariffs. "I instruct the secretary of economy to implement Plan B, which we have been working on, including tariff and non-tariff measures in defense of Mexico's interests," Sheinbaum said on Saturday. Trump's executive orders call for raising US tariffs if Canada and Mexico retaliate. Effects to be felt across the economy The North American energy industry is an obvious casualty of Trump's trade war. But its effects will be felt in automobile manufacturing, agriculture, steel, aluminum, potash and every other sector of the economy in all three countries. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. Tariffs on Canadian and Mexican imports also will disrupt years of free-flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales, since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs on Canada, Mexico to include oil: Update

25/01/31

Trump tariffs on Canada, Mexico to include oil: Update

Updates with comments from Trump, plan for 10pc crude tariff. Washington, 31 January (Argus) — President Donald Trump said late Friday he will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico on 1 February, with crude imports likely to be taxed at a lower 10pc rate. Trump separately plans to impose tariffs on imports from China on 1 February. Asked if his Canada tariffs would include crude imports, Trump said, "I'm probably going to reduce the tariff a little bit on that," he told reporters at the White House. "We think we're going to bring it down to 10pc." Trump, who previously tied tariffs on imports from Canada, Mexico and China to their alleged inability to stem the flow of drugs and migrants into the US, today insisted that the tariffs he plans to impose on Saturday in fact have a strictly economic rationale and are non-negotiable. The tariffs expected on Saturday "are not a negotiating tool", Trump said. "No, it's pure economic … we have big deficits with all three of them." Trump, in a wide ranging gaggle with reporters, separately mentioned that he would impose tariffs on imported chips and oil and natural gas. "That'll happen fairly soon, I think around 18 February," he said. It was not clear from his remarks if he meant that all oil and gas imports into the US would be taxed, or if he referred to supply only from Canada and Mexico. Trump said he would also raise tariffs on imported steel, aluminium and eventually copper as well. Trump brushed away criticism of potential negative impacts from his tariffs. "You will see the power of the tariff," Trump said. "The tariff is good, and nobody can compete with us, because we have by far the biggest piggy bank." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Mexican president Claudia Sheinbaum also said her country has prepared responses to US tariffs . Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. Gas, petchems, steel and ags threatened The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales , since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture (USDA) data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs to hit Canada, Mexico, China on 1 Feb

25/01/31

Trump tariffs to hit Canada, Mexico, China on 1 Feb

Washington, 31 January (Argus) — President Donald Trump will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February, the White House said today. The White House pushed back on reports that the tariffs would be delayed and declined to confirm whether Trump made a decision on whether to exclude Canadian and Mexican crude from the tariffs. "Those tariffs will be for public consumption in about 24 hours tomorrow, so you can read them then," the White House said. The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Trump on Thursday acknowledged a debate over the application of tariffs to oil but said he had yet to make a decision on exemptions. The White House dismissed concerns about potential inflationary effects of Trump's tariffs. "Americans who are concerned about increased prices should look at what President Trump did in his first term," it said. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US still eyes 1 February for Canada, Mexico tariffs

25/01/28

US still eyes 1 February for Canada, Mexico tariffs

Washington, 28 January (Argus) — President Donald Trump is still keen to impose tariffs on all imports from Canada and Mexico as soon as 1 February, the White House said today. Trump in multiple public comments since taking office on 20 January said he was still considering a 25pc tariff on Canada and Mexico, even though his administration has yet to provide any details on the proposal. Trump spent much of his meeting on Monday with Republican lawmakers at their annual retreat in Florida blasting Canada and Mexico over their allegedly unfair trade practices. Tariffs should become a key source of income for the US government, just as they were in the nineteenth and early twentieth century before being supplanted by income taxes, Trump told the lawmakers, who are looking at ways to extend tax cuts enacted during his first term and set to expire at the end of 2025. Trump also said he would impose tariffs on all imported computer chips, semiconductors and pharmaceuticals. Trump's messaging on China tariffs has been more mixed. He said last week he would go on with his initial plans to impose a 10pc tax on all imports from China, but he also said he preferred to avoid a trade war with Beijing. An executive order Trump signed on 20 January lays out a process suggesting timelines of June-July for imposing tariffs on the US' key trading partners, with no reference to the 1 February deadline. But Trump has the legal authority to impose tariffs on imports from any country by a variety of executive actions and with very short notice, as he demonstrated over the weekend during a high-profile confrontation with Colombia over deporting migrants from the US. Trump told the lawmakers on Monday that he expects to wield the threat of tariffs as a negotiating tool often, because even "a very strong country" like Colombia caved in to his demands. Canada and Mexico appear to be preparing for a protracted trade confrontation with the US if Trump follows through on his threat, with retaliatory measures targeting specific US products and companies. The looming faceoff has unnerved the US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico to the US. Industry group American Petroleum Institute is lobbying the Trump administration to exempt crude and other energy products from any tariffs he plans to impose. Trump last week shrugged off the arguments from the US energy industry about potential negative impacts from confronting Canada and Mexico. "We don't need their oil and gas," Trump said. "We have our own, we have more than anybody." Almost all of Mexico's roughly 500,000 b/d of crude shipments to the US through November are waterborne, targeting Gulf coast refiners, and can be diverted to Asia or Europe. Canadian producers have much less flexibility — more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Only around 900,000 b/d can be directed away from the US via the recently expanded Trans Mountain pipeline system to the Pacific coast, although late-2024 flows were actually closer to 400,000 b/d, split evenly between the US west coast and Asia. Conversely, many refineries in the US midcontinent have no practical alternative to the Canadian crude. US gasoline prices would move higher by 30-70¢/USG if the 25pc tariffs that Trump has threatened were applied to Canada's oil, Canada's TD Bank projects. Trump's commerce secretary nominee Howard Lutnick will face a confirmation hearing at the Senate Commerce committee on Wednesday, with trade wars likely to feature high among the questions lawmakers direct at him. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Port of Nola reopens after winter storm

25/01/24

Port of Nola reopens after winter storm

Houston, 24 January (Argus) — The port of New Orleans reopened today after a prolonged shut-down propelled by a heavy winter storm that swept through the US Gulf earlier this week. Nola and Ports America reopened today to begin working on the backlog of movement caused by the storm. The port had been officially closed since 19 January in anticipation of the wintry temperatures, heavy precipitation and winds. Several inches of snow fell across New Orleans beginning Tuesday morning, according to the National Weather Service, with freezing conditions lasting through Thursday. Both ship and barge loadings and unloadings were significantly delayed across terminals. Several shipping and barge companies announced force majeures before the storm but are expected to reopen within the next couple of days, subject to safety conditions. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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