South Korean trucker strike ends after eight days

Market: Metals, Petrochemicals
15/06/22

South Korean truck drivers have ended an eight-day strike that had caused severe disruption to movements of petrochemicals, steel and other products.

The cargo truckers' solidarity division of the Korean public service and transport workers' union decided to end its strike at around 22:40 South Korean time (13:40 GMT) on 14 June, according to South Korea's Ministry of Land, Infrastructure and Transport (Molit).

Around 15,000 truck drivers began an indefinite strike at ports and container depots across South Korea on 7 June, threatening to slow the country's exports of polymers and other consumer goods. South Korean industry group the Korea Petrochemical Industry Association (KPIA) called for an end to the strike on 13 June, warning that petrochemical firms will suffer losses because of shipment delays, and may even be forced to cease operations.

The strike is linked to the South Korean government's plans to remove coverage for truck drivers working in the container and bulk cement sectors under the country's "safe rates" system by the end of the year. The system, which offers truck drivers minimum wages derived from operating costs, has helped cushioned the impact of soaring fuel prices and living costs on such drivers.

Major domestic industries such as the automobile, steel, and cement sectors have been affected by issues like reduced shipments, according to Molit. The prolonged strike has strained the nation's logistical network, threatening to hit the steel and scrap industry, trade sources said.

The ministry will report to South Korea's national assembly the results of the country's current "safe rates" system for trucks so far, and has also agreed to an extension of the current system, based on the results of the negotiations. It also plans to review measures to expand oil subsidies and support for truckers, in view of the recent rise in oil prices.

By Tng Yong Li

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

24/04/25

Brazil's Usiminas steel price outlook murky

Sao Paulo, 24 April (Argus) — Brazilian steel producer Usiminas' outlook for prices was mixed as steel output rose in the latest quarter. Usiminas commercial vice-president Miguel Homes said that pressure from imports and the Brazilian real's recent appreciation to the US dollar may force the producer to adjust spot prices in the future. At the same time, the company expects prices to remain flat in the coming quarter, according to its quarterly earnings release. Usiminas confirmed a 3pc price increase for automotive manufacturer contracts in April, which could signal an opportunity for a price reduction in light of the real's appreciation. The real has appreciated by 12.5pc to the US dollar year-to-date, slashing feedstock costs for Usiminas but also pressuring its domestic price levels. Brazilian mills have been unable to raise prices because of strong import flows, which increased 30pc in the first quarter, reaching 1.7mn metric tonnes (t). Usiminas sales rose to 1mn t in the first quarter, up by 9pc from the same period a year earlier. The company expects its sales volumes to be stable in the coming months. It also boosted crude steel output to 773,000t in the first quarter, 10pc above a year prior. Rolled-steel production remained flat at 1mn t. The company exported over 90,000t of steel in the first quarter. Argentina's automotive and oil and gas pipeline industries accounted for 81pc of Usiminas'steel exports , Usiminas said. Iron ore production reached 2.1mn t in the first quarter, up by 12pc from a year earlier. The company sold 2.2mn t of iron ore, marking 13pc growth from a year before. Exports accounted for 75pc of first quarter sales and profits in the period soared by over ninefold to R337mn ($65mn). By Isabel Filgueiras Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Freeport expects tariffs to increase costs 5pc

24/04/25

News

24/04/25

Freeport expects tariffs to increase costs 5pc

Houston, 24 April (Argus) — US-based copper producer Freeport-McMoRan expects tariffs to increase the costs of goods needed for operations by 5pc, as suppliers will likely pass on tariff-related costs. The 145pc tariffs imposed by the US on China on 10 April will likely have the largest influence on the estimated 5pc increase, according to Freeport-McMoRan chief executive officer Kathleen Quirk. Approximately 40pc of the company's US costs will not be subject to tariffs, as they relate to labor and services. Copper is currently exempt from tariffs after President Donald Trump signed an executive order on 25 February launching a Section 232 investigation into the effect of copper imports on US national and economic security. Freeport said that its first quarter copper sales volumes of 872mn lbs exceeded its earlier estimate of 850mn lbs. But copper sales revenue decreased to $872mn this quarter from $1.1bn the first quarter of 2024. Copper production and sales were pressured in the quarter by shut operations at its Manyar smelter in Indonesia following sfire in October . The company expects start-up activities to begin at the smelter in the second quarter and return to full operations by the end of 2025. The company's molybdenum first quarter sales remained the same as 2024 first quarter's at $20mn. Freeport's net income for the first quarter was $352mn, a decrease from $473mn in the first quarter of 2024. By Reagan Patrowicz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

SA Recycling expands Atlanta shredder rail spur

24/04/25

News

24/04/25

SA Recycling expands Atlanta shredder rail spur

Pittsburgh, 24 April (Argus) — US scrap metal processor SA Recycling is expanding the rail spur at its Doraville, Georgia, shredder, which is about 20 miles northeast of Atlanta. The expansion will nearly double rail capacity at the facility by boosting its daily carloads from 14 up to 25 per day, according to railroad Norfolk Southern. The company worked with the railroad to establish a direct connection between its scrap yard and the rail yard to eliminate mainline switching conflicts and congestion. SA's Doraville shredder can process up to 200 cars/hour. It is one of 28 SA operations across the state, according to the company's website. The Orange County, California-based company is a 50-50 joint venture between Sims and Adams Steel. By Brad MacAulay Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Dow delays Path2Zero ethylene project in Canada

24/04/25

News

24/04/25

Dow delays Path2Zero ethylene project in Canada

Houston, 24 April (Argus) — Dow is delaying construction in Canada of its Path2Zero project, designed to produce 1.9mn metric tonne (t)/yr of low-carbon ethylene, until "market conditions improve", the company said today. The company decided to delay work at its Path2Zero project site in Fort Saskatchewan, Alberta, in light of uncertainty around US tariffs and potential retaliatory tariffs by US trading partners, especially their impact on product demand, the company said Thursday on its first-quarter earnings call. Path2Zero, designed to produce ethylene and derivatives with net-zero carbon emissions, was announced in October 2021 and was originally planned for a first-phase start-up in 2027 and a second phase in 2029. The first phase was meant to coincide with an expected upturn in the business cycle. But tariffs have increased uncertainty to the point that Dow said it cannot be sure of a recovery in two years. Chief executive Jim Fitterling described the current market environment as "one of the most protracted down-cycles in decades", compounded by geopolitical and macroeconomic concerns that further weigh on demand. The Path2Zero project delay will save $600mn in 2025, accounting for 60pc of the company's plan to cut capital spending this year by $1bn from the company's original $3.5bn spending plan. The pause comes before a ramp up in construction labor and allows the company to see how tariffs effect global demand and supply chains. "We are at a point right now where we can make this decision to have minimal impact on the project," Fitterling said. "We've done a lot of groundwork, we're finishing our engineering work, and we've got our long lead time items ordered." Despite the delay, Dow remains committed to the project in the long-term. The project will one day capture upside in demand for targeted applications like pressure pipe, wiring cable and food packaging, the company said. When complete, the project is expected to generate approximately $1bn/yr in incremental earnings. Even with the delay, it is still likely to be the world's first integrated ethylene complex to achieve net-zero Scope 1 and 2 emissions. To restart the project, Dow said it would have to start seeing supply and demand balances tighten. The company said it would next revisit restarting the project at the end of 2025. Without a green light by year's end, Dow said it would review a project restart "on a regular basis". The project would triple the site's ethylene and polyethylene (PE) capacity. In total, the site would produce approximately 3.2mn t/yr of low-to-zero emissions PE and other ethylene derivatives. The first phase startup in 2027 was to have brought on 1.3mn t/yr of ethane-derived ethylene and PE, and the second phase in 2029 was to bring on an additional 600,000 t/yr of ethylene and PE. The site will also convert cracker off-gas into hydrogen to be reused as a clean fuel in the production process. The project is designed to capture CO2 emissions for storage by adjacent third-party infrastructure. By Michael Camarda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US port fees threaten some metal shippers

24/04/25

News

24/04/25

US port fees threaten some metal shippers

Pittsburgh, 24 April (Argus) — US scrap metal shippers will see varying degrees of exposure to US Trade Representative's (USTR) revised proposal for port fees on Chinese-built and operated ships. USTR finalized a plan 17 April to apply a $50/net ton (nt) fee on Chinese operators and owners and a $18/nt fee on Chinese-built ships that dock in the US. The fees will begin in mid-October with incremental increases over the next three years. The agency determined that China's dominance of the maritime, logistics, and shipbuilding sectors has reduced supply chain resilience by displacing foreign firms, lessening competition, and creating dependencies on the country. The number of US-flagged or -built ships has decreased by 34pc since 2010 to 185 in 2024, US Bureau of Transportation statistics data show. US-flagged or -built vessels accounted for 0.4pc of the global fleet in 2019. The fees are less severe than the industry anticipated, but sweeping exemptions will result in uneven impacts for bulk and container shippers. Fees largely spare bulk shippers Bulk scrap metal shippers will have the least direct impact from the new policies because ships arriving empty or in ballast and vessels carrying 80,000 deadweight tons (dwt) or less will be excluded from the charges associated with using a Chinese-built ship. Chinese-built ships account for 41pc of the 14,661 active vessels in the dry bulk global fleet, according to global ship tracking analytics firm Kpler. Bulk scrap exporters most commonly use Handysize vessels, but some occasionally fix bigger ships. The average weight of a bulk ferrous scrap export vessel in 2024 was 33,500 metric tonnes (t), according to manifest data. Even the largest Supramax vessel booked by east coast scrap exporters in 2024, the Denak D , would still qualify for the weight exemption. Most market participants are still working through the notice and waiting for more details regarding the exemptions. The USTR has not responded to requests for clarification on exemptions. Chinese-owned and Chinese-operated vessels would still be subject to the fees . Bulk shippers will be exposed to this direct cost, unless they shy away from Chinese-owned or operated vessel fixtures. But competition for these vessels will likely raise freight rates and availability as other commodity sectors shift their bookings as well, market sources said. Mills see some exposure on metallics US steelmakers importing bulk scrap will also broadly be spared from higher port fees related to Chinese-built vessels because of the weight exemptions, but some mills will be more exposed on imports of pig iron. Pig iron shippers occasionally use Kamsarmax vessels over 80,000dwt. But the vast majority of US pig iron imports travels in smaller vessels, such as Supramax or Ultramax size, which tend to have capacities well below the 80,000dwt limit. USTR offered exemptions to short-haul voyages under 2,000 nautical miles, which will help to relieve costs for shipments on the Great Lakes or between the US Gulf coast and Mexico. Mills would still be exposed to fees on any Chinese-owned or Chinese-operated vessel. Fees put container shippers at risk US container scrap exporters are the most vulnerable to the USTR's finalized plan on Chinese ship operators' vessels calling at US ports. Chinese built vessels account for about 50pc of all container ships globally, a market source said. USTR plans to impose a fee of $120 for each container discharged on a Chinese-built vessel beginning in mid-October with annual increases over the next three years reaching $250 for every container in April 2028. US shippers typically load about 25t in containers on the east coast and around 20t on the west coast. Containerized traders are bracing for higher freight costs later this year once the fees go into effect. USTR proposed exemptions for container vessels with a capacity no greater than 4,000 twenty-foot equivalent units (TEU), but most of the ships servicing the US export market are minimum of 8,000 TEUs, market participants said. The added port fees will likely get passed through to US customers via higher freight costs, a freight forwarder said. But for the short-term, blank sailings and new vessel capacity coming online has helped to keep rates steady, according to market participants. These added costs, paired with broader concerns of a flagging economy have begun to worry market participants over possible margin compression in the fourth quarter. By Brad MacAulay and James Marshall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more