US inflation rises in October to 2.6pc

: Coal, LPG, Metals, Natural gas
24/11/13

US inflation ticked higher in October, led by monthly gains in shelter, a reminder that the last lap in the Federal Reserve's marathon to bring inflation to its long-term target remains a challenge.

The consumer price index (CPI) accelerated to an annual 2.6pc in October, in line with analysts' forecasts in a survey by Trading Economics, from 2.4pc in September, which was the lowest since February 2021, the Labor Department reported today. Core inflation, which strips out volatile food and energy prices, rose at a 3.3pc rate, unchanged on the month.

The energy index contracted by 4.9pc over the 12 months, slowing from a decline of 6.8pc through September. The gasoline index fell by 12.2pc, slowing from a 15.3pc decrease the prior month. The fuel oil index fell by 20.8pc.

Federal Reserve policymakers last week cut the target rate by a quarter point, following a half-point cut in September that kicked off an easing cycle from then-23-year highs. Inflation has slowed to near the Fed's 2pc target from highs above 9pc in mid-2022 that proved to be a major impetus behind president-elect Donald Trump's victory at the ballot box on 5 November.

The CME's FedWatch tool today gives near-80pc odds of another quarter-point cut in December.

"The economy can develop in a way that would cause us to go faster or slower" in adjusting rates lower, Fed chair Jerome Powell told reporters last week after the Fed decision.

The food index rose by an annual 2.1pc, slowing from a 2.3pc gain through September. Shelter rose by an annual 4.9pc, unchanged. Transportation services rose by 8.2pc. New vehicles fell by 1.3pc while used vehicle prices fell by 3.4pc. Services less energy services, viewed as core services, rose by 4.8pc.

On a monthly basis, CPI rose by 0.2pc in October, a fourth month of such gains after falling by 0.1pc in June. Core inflation rose by 0.3pc for a third month.

Shelter accelerated to a 0.4pc monthly gain, accounting for over half of the monthly all-items increase, after a 0.2pc gain.

Energy was unchanged in October after falling by 1.9pc in September from the prior month. Food rose by 0.2pc on the month, following a 0.4pc gain.

By Bob Willis

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25/07/11

Section 232 imports avoid planned US-Canada tariff

Houston, 11 July (Argus) — The newly announced plans for a 35pc tax on Canadian imports to the US will not apply to goods already subject to Section 232 tariffs, according to a White House official. Steel and aluminum imports have been subject to 50pc Section 232 tariffs since 4 June, and copper and its derivatives will be subject to a 50pc tariff beginning 1 August. The official expects imports from Canada currently tariffed at a rate of 25pc to increase to 35pc, excluding US-Mexico-Canada trade agreement-compliant goods, energy and potash, but said no final decision by President Donald Trump had been made. By Jenna Baer Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil gov must boost EV demand: Li miners

25/07/11

Brazil gov must boost EV demand: Li miners

Sao Paulo, 11 July (Argus) — At least four suppliers in the Brazilian spodumene market voiced interest in federal policies to boost demand for electric vehicles (EVs) to create a consolidated end-to-end battery supply chain in Brazil, the companies said at a conference in Minas Gerais. In an initiative led by Companhia Brasileira de Litio (CBL), executives for AMG Lithium, Lithium Ionic and PLS all pleaded for the Brazilian federal government to implement policies to boost EV demand — which would support the Brazilian spodumene market — CBL's chief executive Vinicius Alvarenga said. CBL owns the only lithium carbonate refinery in Brazil and it believes the country has the potential to have an end-to-end battery supply chain. Currently, Chinese refineries receive 99pc of all lithium chemicals produced in Brazil. "The only thing stopping Brazilian companies to make battery cells is the lack of demand from the regional market," Alvarenga said. "We need to pressure the government to incentivize the installation of lithium-based energy storage systems and to give more benefits to EV buyers." Alvarenga mentioned WEG — a multidisciplinary technology company — and Moura, the largest battery manufacturer in Latin America, as firms well suited for the job. "Brazil can be one of the world's top players in the energy transition landscape," said Leandro Gobbo, vice-president for Brazilian operations at PLS. "We have world class ore, the expertise and the technology to do so — we only lack government incentives." At the bottom of the cost curve, Brazil has one of the cheapest hard-rock lithium operations in the world, rivaling China and beating Australia and many African producers. Although China holds its place as the home to the cheapest hard-rock lithium projects in the world, Brazilian miners are also operating at a profit despite the low price environment, mainly because of cheap labor. Around half of the world's hard-rock lithium miners are currently operating at a loss. All three commercially producing spodumene companies in Brazil — Sigma Lithium, CBL and AMG — are sticking to their investment guidance and expansion plans despite falling prices. "There is an opportunity here at this low-price environment," said Blake Hylands, chief executive of Lithium Ionic, owner one of the largest undeveloped spodumene sites in Brazil. "We need to move projects forward at this time so Brazil can progress in the global stage." The average labor costs in Brazil are significantly lower than in places like Australia, which is also dealing with a workforce shortage in mining, according to Gobbo, and where employee wages have pushed most spodumene operations to operate at a loss as prices bottom. "Brazil will never beat China in capital costs and internal demand," Alvarenga said. "But despite taking a hit at those two, Brazil is the best place in the world to produce spodumene." Brazil has a combination of benefits that are not seen elsewhere, such as low royalties, a specialized workforce, solid internal and external logistics, market transparency, legal stability, high ESG and human rights standards, and the cheapest electrical energy in the world, Alvarenga said, which is mostly renewable. "If we look at other countries with cheap [spodumene] production, we don't see that," said Ligia Pinto, vice-president of external affairs at Sigma Lithium, Brazil's top lithium concentrate producer. "Our low costs do not harm human rights." The so-called Lithium Valley — a spodumene rich region in Southeast Brazil — has a production capacity of 320,000 metric tonnes (t)/yr of lithium concentrate between CBL and Sigma Lithium, the country's top producer. AMG Lithium, which operates further south, bumps up Brazil's total current capacity to 410,000t/yr. "This is a country that we can trust," Hylands said. "We are taking longer than China, but that's okay, because everyone takes longer than China." By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil advances oil, gas decarbonization strategy

25/07/11

Brazil advances oil, gas decarbonization strategy

Sao Paulo, 11 July (Argus) — Brazil is implementing a roadmap to increase crude output without boosting net emissions from the sector, a key argument for its claim to leadership on climate issues ahead of the Cop 30 UN summit. Although Brazil does not plan to phase out fossil fuel use, it is working to reach net zero emissions by 2050, and slashing greenhouse gases from its hydrocarbons production is part of this strategy. Brazil's oil industry already has a carbon footprint at 14.88kg CO2 equivalent (C02e)/bl of oil equivalent (boe), which is well below the global average of 20kg CO2e/boe, according to the hydrocarbons regulator ANP. But with oil and gas production slated to increase steadily over the next decade, Brazil's government and producers are eyeing a range of options to further slash emissions. "Brazil can double oil output without increasing net emissions by employing existing technologies," Heloisa Borges, the director of oil, gas and biofuels at the government energy planning and research agency (Epe) said. As part of these efforts, the government called on Epe, ANP and state-owned company Pre-Sal Petroleo to present a roadmap to decarbonize the sector. The plan presented in late June outlines options including adopting new technologies and expanding existing emissions reductions techniques, such as leak detection and reducing flaring. "Expanding methane capture not only reduces emissions, but it allows companies to use this gas to substitute other fuels, such as diesel in their operations," Borges said. Other fuel substitution operations include using natural gas as fuel for drilling rigs and electrification of production operations, the study said. State-controlled Petrobras is already advancing its decarbonization strategy. The company's most recent five-year plan earmarks R5.3bn ($950mn) for emissions reductions in its operations as well as $1bn for research and development of new technologies. Carbon capture, utilization and storage (CCUS) is a key element, according to Lilian Melo, executive director of the Petrobras' research, development and innovation center Cenpes. The company uses high-pressure separation technology to remove CO2 from oil at the mouth of a reservoir and inject it back into the reservoir after the fluids are separated. This technology significantly reduces emissions, especially because crude produced from pre-salt blocks has high CO2 content, Melo said. The CCUS is used on 23 of Petrobras' offshore platforms in the pre-salt. Petrobras is also working to expand electrification of its on and offshore platforms. Power generation is responsible for 65pc of Petrobras' production-related emissions, according to Melo. The company announced this week a contract with Hitachi Energy to assess electrification of its offshore oil operations. Catch and keep Other oil producers are working to reduce the carbon footprint of their operations, including Eneva, which is also weighing investments in carbon capture and storage. The company is conducting a preliminary study to assess the technical viability of injecting CO2 into fields in the Parnaiba basin in Maranhao state. The Gaviao Real field has been operating for more than 10 years and is expected to become depleted in coming years, when it could potentially be converted to store CO2. Eneva is also weighing investments in carbon storage in the Parana basin, where the company has four exploratory blocks. Preliminary seismic data indicates that these blocks also have salt caverns and the company believes that there is significant potential to offer carbon storage to ethanol mills in areas adjacent to the blocks. Despite Brazil's ambitious emissions reduction plan, it has no intention of pulling back on exploration and production. With few exceptions, the Brazilian government is aligned on developing oil and gas reserves to boost economic growth and energy security and holds that the aim does not hurt its role in climate leadership. Brazil's energy sector GHG emissions mn t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canadian ferrous scrap dodges lastest US tariff threat

25/07/11

Canadian ferrous scrap dodges lastest US tariff threat

Pittsburgh, 11 July (Argus) — Canadian goods compliant with the US-Mexico-Canada trade agreement (USMCA), which include ferrous scrap metal, will maintain their exemption status from proposed new US import tariffs on the country, according to a White House official. President Donald Trump announced a 35pc tariff on all imports from Canada effective 1 August in a letter to Canadian prime minister Mark Carney yesterday . A White House official told Argus exemptions currently covered by the USMCA will remain in place. But until the new tariff rate officially goes into effect uncertainty will likely remain a source of concern for market participants. Canada is a major shipper of ferrous scrap metal to the US, particularly shred and #1 busheling. In 2024, the US imported an average of 230,000 metric tonnes (t)/m of ferrous scrap. US imports of Canadian ferrous scrap totaled 1mn t through May, down by 10pc from the prior year. By Brad MacAulay and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada focuses on new US deadline, diversifying trade

25/07/11

Canada focuses on new US deadline, diversifying trade

Calgary, 11 July (Argus) — Canadian prime minister Mark Carney reiterated his plan to diversify trade with countries "throughout the world" following another round of tariff threats, and another deadline, from US president Donald Trump. Carney's comments on social media late on 10 July came hours after Trump said Canada could expect a 35pc tariff on all imports , effective 1 August, repeating earlier claims that the northern country was not doing enough to stop fentanyl from crossing into the US. Canada has said these claims are bogus but in late-2024 still committed to spending $900bn (C$1.3bn) on border security measures over six years. "Canada has made vital progress to stop the source of fentanyl in North America," Carney wrote on X. The prime minister said he is now working to strike a new trade deal before the 1 August deadline. Trump and Carney last month agreed they would work toward a broad trade agreement by mid-July, with Canada at the time targeting 21 July to finalize a deal. The 35pc tariff would be separate from tariffs set for specific sectors, which include a 50pc tariff on copper imports. It is not clear if any imports currently covered by the US-Mexico-Canada trade agreement (USMCA) would be affected by Trump's latest tariff threats. Carney has advocated the need to shore up trade partnerships with "reliable" countries since being sworn is as prime minister in March, saying the old relationship with the US "is over". The energy-rich nation needs to build more infrastructure to unlock this potential, and with a surge in public support, is trying to entice developers with a new law to fast-track project approvals . But those are multi-year efforts and Canada is still trying to reach a deal with the US to keep goods moving smoothly. The two economies are highly integrated with $762bn worth of goods crossing the US-Canada border in 2024, according to the Office of the US Trade Representative. Canada on 29 June rescinded a digital sales tax (DST) that would have collected revenue from the US' largest tech companies, after US secretary of commerce Howard Lutnick said the tax could have been a deal breaker in trade negotiations. That show of good faith — which seemingly got nothing in return — was criticized within Canada and contrary to Carney's repeated "elbows up" mantra in the face of Trump's threats. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US inflation rises in October to 2.6pc

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Section 232 imports avoid planned US-Canada tariff

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Brazil gov must boost EV demand: Li miners

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