Anglo assures customers of 3Q met coal shipments
UK-South African mining firm Anglo American has today informed several steel mills and trading firms that it expects to meet its contracted obligations for the third quarter, Argus has learned. This follows the closure of Anglo American's 5mn t/yr Grosvenor coking coal mine in the Bowen basin region of Australia's Queensland, following an accident in late June.
Anglo American is "evaluating the impact of this incident and is expecting to perform on its third-quarter obligations as planned at this moment, subject to change depending on further assessment", an Asian steel mill source said. Others said the same, with an Indian buyer stating that the company is "not expecting any material impact to supply in the short term, since the miner is expected to meet third-quarter commitments".
Some sources cautioned that cargo delays are still anticipated, with one trading source expecting delays of more than 20 days.
Production at Grosvenor had been strong for the past couple of months, after a challenging 2023. The producer increased spot offers on the market in the past two months, with at least three July-loading Panamax cargoes sold and at least two Panamax cargoes being offered for August loading, before the 29 June accident.
The paper market also cooled down today after sharp increases earlier this week, market participants said. Fob Australia premium futures contracts were trading at around $253-254/t and $257-258/t for July and August, respectively, on 3 July, falling by around $8-10/t from 2 July.
Supply availability for the fourth quarter remains uncertain, with some market participants expecting the market to tighten in anticipation of stronger demand. "There is some demand surfacing from India this week for August and September-loading cargoes, so prices may see some support once September cargoes are being discussed, because other mines are also going to be in maintenance during that time," an international trader said.
The Argus premium low-volatile hard coking coal price was assessed at $257.50/t fob Australia on 3 July, down by $2.10/t from 2 July.
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Mexico economy showing 'timid growth': IMEF
Mexico economy showing 'timid growth': IMEF
Mexico City, 3 July (Argus) — Indicators of Mexico's non-manufacturing and manufacturing sectors suggested the economy recovered "some dynamism" in June, while maintaining the slow pace of growth of the second quarter, according to domestic financial association IMEF. "The trend suggested by the IMEF indicators suggest a moderate growth for the second quarter of the year," IMEF said. "The economy finds itself in an evident pause compared with the solid dynamism observed during 2022 and a large part of 2023." Manufacturing "stagnated" in the second quarter, it said. "It is very probable that economic activity will undergo additional slowdown in the second half of the year that will extend into 2025." IMEF's June manufacturing purchasing managers index (PMI) increased by 0.4 points to 49.5 points, still beneath the 50-point breakeven that shows contraction. This has been the third consecutive month of contraction. PMI adjusted to compensate for variations in company size was more positive, growing by 0.8 points to 51.2 in June, the group said. Manufacturing accounts for about a fifth of the Mexican economy. The non-manufacturing PMI, which covers the lion's share of the economy, rose by 0.6 points to 51 in June, marking a 29th month of expansion, IMEF said. Adjusted for company size, the headline services PMI rose by 0.9 to 5.18. Economic activity in Mexico continues to surprise downwards. After growth came in at an annual 1.6pc in the first quarter from a year earlier, the first data for April showed a monthly contraction of 0.6pc, IMEF said. Headwinds and tailwinds IMEF representatives highlighted growing market uncertainty following the Mexican election and ahead of the US presidential election in November. On the upside, said IMEF, Mexico should benefit from continued strength in the US economy, adding the incoming administration looks to bring down the current fiscal deficit, which is equal to 5.9pc of GDP. For which, it will not reach the government's 3pc target for the budget coming out in November, but progress is expected with next year's budget and moving forward. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s domestic car output rebounds on year in May
Japan’s domestic car output rebounds on year in May
Tokyo, 3 July (Argus) — Japan's domestic automobile production in May increased on the year for the first time in four months, mostly because of output recovery at manufacturer Daihatsu. Total passenger vehicle output rose to 612,364 units, up by 4.8pc from a year earlier. Production increased, largely because Daihatsu restarted domestic operations in early May. The manufacturer suspended operations in December 2023, when it was accused of tampering with safety test results. Daihatsu's production still fell on the year by 17pc in May, but the year-on-year declines have slowed from 92pc in February, 66pc in March, and 69pc in April. The country's car output could continue to recover. Toyota resumed production of the Prius model on 17 June, after it suspended operations following a recall for a safety check in April, according to a company representative who spoke to Argus . The country's authority in early June ordered Toyota and Mazda to halt some of their car deliveries , following alleged false reporting of safety test results. These disruptions could cut production, but the manufacturers are managing to keep overall output by increasing production of models that are not subject to the order, according to the country's ministry of trade and industry on 2 July. By Yusuke Maekawa Japan's car production (units)* May '24 Apr '24 May '23 y-o-y ± % Toyota 255,314 251,485 248,287 2.8 Daihatsu 38,564 21,317 46,642 -17.3 Mazda 55,523 63,136 51,040 8.8 Subaru 46,400 41,852 49,790 -6.8 Honda 51,125 57,196 44,510 14.9 Suzuki 83,157 86,668 65,332 27.3 Mitsubishi 37,422 34,095 31,538 18.7 Nissan 44,859 48,273 47,197 -5.0 Total 612,364 604,022 584,336 4.8 Source: Japanese car makers * Excludes commercial vehicles Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Asia-Pacific coking coal: Fob trades at $260/t
Asia-Pacific coking coal: Fob trades at $260/t
Singapore, 2 July (Argus) — Coking coal prices on a fob Australia basis jumped after an August Goonyella deal emerged higher on traders' position-taking, against a background of anticipated supply tightness. The Argus Australian premium low-volatile (PLV) hard coking coal price rose by $22.60/t to $259.60/t on a fob basis, while the tier-two hard coking coal price rose by $18.50/t to $225.50/t fob Australia. Trading returned to the first-tier fob Australia market today after more than a week of subdued activity. A major producer sold a 40,000t Goonyella cargo with 1-10 August laycan to a trading firm at $260/t fob Australia on the Globalcoal trading platform today. The trade was in line with market expectations of tightening supply, providing a lift to coking coal prices. The suspension of operations at Anglo American's Grosvenor mine in Queensland has prompted a sharp change in market sentiment, sources noted. Sentiment had been bearish over the previous week, before taking a bullish turn when the news of the closure broke over the weekend, an India-based trader said. Several sources said the increase was on the high side, as there has been limited change in recent market fundamentals to warrant such a rise. Recent events made it challenging to gauge where the market price should be, a Singapore-based trader said, preferring to adopt a wait-and-see approach towards near-term market direction. But users in the region were largely sceptical on whether the uptrend can be sustained, suggesting that demand remained muted their end. "We don't have any urgent requirement at this point and will wait for an update from the miner before acting," an Asian steel mill source said. Several steel mill sources also pointed out that they have accounted for limited supply from the miner in August-September because of a scheduled long wall move. At least three steel mill sources expected the miner to have sufficient inventory to meet the commitments for scheduled July-loading cargoes. A bid for a 75,000t cargo of premium mid-volatile hard coking coal for 1-10 September was made at $255/t fob Australia on Globalcoal today, increasing from $250/t fob earlier in the session. It did not attract a counteroffer. In the pulverised coal injection (PCI) segment, a 40,000t cargo of Australian South Walker Creek PCI for 27 July-5 August loading was sold at $195/t fob Australia to a Brazilian steel mill on 1 July after the assessment timestamp of 17:30 Singapore time. Premium hard coking coal prices to India rose by $22.25/t to $275.35/t on a cfr basis, while second-tier prices rose by $18.60/t to $241.70/t cfr east coast India. The PLV hard coking coal price to China was unchanged at $247/t on a cfr basis today, while the second-tier price was flat at $217/t cfr north China. Market participants noted that the trade seemed to have minimal impact on the Chinese market. An international trader suggested that domestic coking coal prices held steady because of Russian and Mongolian coal availability. The link between the seaborne and domestic market has been disjointed for a while now, another trading source said, even though fob prices are expected to climb because of tightening seaborne supply. "At the current fob Australia price levels, it is difficult for Chinese buyers to consider buying imported coal since other origins of seaborne prime coals are also expected to increase at a relativity to the fob Australia price," a Chinese buyer said. Fob Australia rationale The fob Australia PLV index was based on an average of the day's deals and surveys, both weighted at 50pc in the index calculation. A 40,000t cargo of Goonyella with an August laycan traded at $260/t fob Australia and was normalised flat. The market survey was at $255-260/t and averaged $259.17/t. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
S Korea's LGES, Renault sign 39GWh LFP battery deal
S Korea's LGES, Renault sign 39GWh LFP battery deal
Singapore, 2 July (Argus) — South Korean battery manufacturer LG Energy Solution (LGES) will supply 39GWh of lithium-iron-phosphate (LFP) batteries to French car manufacturer Renault's electric vehicle (EV) division Ampere from 2025-30. Under the agreement, LGES will provide LFP batteries in pouch form to Ampere from the end of 2025 through to 2030, said LGES on 2 July. The batteries will come from its facility in Poland where it has a 86GWh battery plant, which is the largest in Europe. This marks the firm's first "large-scale" LFP battery supply deal for EVs, said LGES. The firm will continue to expand its supply of LFP batteries for EVs, starting with the European market, said the firm. LFP batteries are typically more cost-competitive compared to nickel-manganese-cobalt (NMC) batteries given the materials used, and LGES sees demand rising for the former as demand for affordable entry-level EVs grows. Ampere earlier said it will be integrating LFP technology alongside the NMC batteries that Renault has been using, because of market volatility and changes in battery technologies. LGES and Chinese battery manufacturer CATL will provide Ampere with LFP batteries and technology, with LGES providing batteries from its Poland facility, and CATL providing the technology until 2030. The three firms will set up an "integrated value chain" in Europe, said Ampere. The decision to integrate LFP and cell-to-pack technologies — which raises the volumetric density of batteries — will help Ampere in cutting 20pc of its battery costs, said the company. This is part of the firm's roadmap to cut 40pc of costs by 2027 or 2028. Ampere targets to sell 1mn units of EVs in 2031 with a goal of reaching €25bn ($26.83bn) in revenue that same year through seven of its EV models, said the firm late last year. Sales of plug-in EVs, which include plug-in hybrid EVs and battery EVs, fell by over 10pc in Europe during May on weak German demand, with sales of hybrid EVs rising by 15pc on the year across the EU, European Free Trade Association and the UK. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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