US factory activity in 1st expansion since Sept 2022

Spanish Market: Chemicals, Coal, Electricity, Freight, LPG, Metals, Natural gas, Oil products
01/04/24

Economic activity in the US manufacturing sector expanded in March for the time since September 2022, on positive demand and stronger output.

The manufacturing purchasing managers' index (PMI) rose to 50.3 in March, up from the 47.8 recorded in February, according to the Institute for Supply Management's (ISM) monthly survey. The 12-month average was 47.5. Readings above 50 signal growth while those below that level signify contraction.

The new orders index rose by 2.2 percentage points to 51.4, while the production index surged 6.2 points to 54.6. The prices index rose by 3.3 points to 55.8 in March. Export orders were unchanged at 51.6, in expansion territory. The suppliers' delivery index edged down to 49.9, signaling slower deliveries, which is typical as the economy improves.

The stronger-than-expected PMI survey adds to other recent data, including job growth, consumer spending and stronger-than-initially estimated GDP growth, that shows the economy outperforming expectations. This adds pressure on Federal Reserve policymakers to hold back on beginning to cut borrowing costs after raising them to the highest in 23 years to rein in inflation.

"Demand remains at the early stages of recovery, with clear signs of improving conditions," ISM said. "Production execution surged compared to January and February, as panelists' companies reenter expansion. Suppliers continue to have capacity but are showing signs of struggling, due in large part to their raw material supply chains."

By Bob Willis

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27/03/25

British Steel to close furnaces and steelmaking

London, 27 March (Argus) — Scunthorpe-based British Steel has started consultations with its workforce on the closure of its blast furnaces and steelmaking operations, with widespread redundancies. The company has proposed three options: the closure of the furnaces, steelmaking and Scunthorpe rod mill by early June this year; the closure of blast furnaces and steelmaking by September 2025; or the closure of the blast furnaces and steelmaking operations after September 2025. All of the options would essentially mean the company importing semi-finished steel and re-rolling it into longs, similar to Tata's decision to import slab, hot-rolled coil, cold-rolled coil and in some instances hot-dip galvanised. The government has offered British Steel £500mn towards its decarbonisation, in line with the amount Tata Steel received, but no agreement has been reached. UK energy minister Sarah Jones told the House of Commons business committee yesterday British Steel's owner Jingye had refused the £500mn offer. Market sources believe the company is holding out for greater state-support, and using the consultation as a negotiating tactic. It said in the event of its first option — closing the furnaces, steelmaking and Scunthorpe Rod Mill, by early June — it would not be able to commit to electric arc furnace-based technology. Market sources have questioned how long the company would run the furnaces. It has been exploring options for bringing in external gas supply to power its reheat furnaces and rolling lines for some time. Some have also questioned the company's commitment to electric arc furnace (EAF)-based production. British Steel said the ageing furnaces and steelmaking operations are "no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs and higher environmental costs relating to the production of high-carbon steel". Changes need to be made to put the business on a sustainable footing, it said. Unions have asked the government to provide an additional £200mn to British Steel to keep the furnaces — which have been beset by issues in recent years — running until EAFs are in place. "We urge Jingye and the UK Government to get back around the table to resume negotiations before it is too late", Roy Rickhuss, general secretary of the Community Union, said. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia raises tax targets for energy, mining sectors

27/03/25

Indonesia raises tax targets for energy, mining sectors

Manila, 27 March (Argus) — Indonesia is aiming to collect higher non-tax state (PNBP) revenue from its energy and mining sector this year, with the country's energy ministry (ESDM) targeting 254.5 trillion rupiah ($15.4bn) for 2024, an 8.6pc increase on the year. The ESDM collected Rp269.5 trillion in PBNP payments last year, surpassing the target collection by 15pc. The minerals and coal mining sector was the biggest contributor, with total revenue collected reaching Rp140.5 trillion, accounting for 52pc of the total. PNBP deposits from the mining and energy sector last year surpassed the 2024 target of Rp113.54 trillion, the ESDM said. The ESDM aims to collect at least Rp124.5 trillion from the mineral and coal mining sector this year. The ESDM said the collections target was set conservatively, and it expects actual remittances to surpass this. The ESDM is currently eyeing an increase in royalty rates for all mining sectors to help increase collections this year, a move that industry participants have decried as they claim that it will have a detrimental effect on business. Coal mining companies have called for the royalty rates to remain unchanged, especially since regulations that were recently implemented that affected their cashflows. They were referring to the use of the coal reference HBA price as an index for export sales , and the extension of the holding period for export proceeds to one year from three months previously. The ESDM will run more frequent and stricter compliance audits on mandatory payments to ensure that PNBP collection targets are met, it said. This will be possible given the integration of the e-PNBP digital collections system with the Mineral and Coal Information System (Simbara), an inter-agency digital platform which allows for tighter monitoring of mining company operations, ESDM added. Miners that fail to remit PNBP collections could be be flagged and penalties ranging from fines to business permit suspensions and terminations could be carried out, the ESDM said. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Virgin, Qatar airlines partner on Australia SAF project

27/03/25

Virgin, Qatar airlines partner on Australia SAF project

Singapore, 27 March (Argus) — Privately-held airline Virgin Australia and state-owned carrier Qatar Airways will partner with bioenergy firm Renewable Developments Australia (RDA) on a sustainable aviation fuel (SAF) project near the city of Charters Towers in northern Queensland state. The project seeks to build an alcohol-to-jet (AtJ) facility with a nameplate capacity of 96mn litres/yr of SAF to be supplied to nearby airports, most likely to terminals at Townsville and Cairns city. The refinery is in the pre-final investment decision stage and is aiming to reach first output in early 2029, according to RDA. "Our SAF facility will be a fully integrated production site, generating sustainable fuel from bioethanol derived from locally grown sugarcane," RDA managing director Tony D'Alessandro said on 27 March. SAF by-products will be used to generate renewable power on-site and increase sustainability credentials, RDA said. Qatar last year agreed to buy a 25pc stake in Virgin , Australia's second-largest airline, with plans to increase international flights to Australia using Qatar planes wet leased by Virgin approved last month. The development comes after Virgin last week agreed to a deal with Australian refiner Viva Energy to operate services from the town of Proserpine in north Queensland using a SAF blend for several months this year . North Queensland's sugar industry has attracted interest from other developers of AtJ plants, including Australian bioenergy developer Jet Zero's 113mn l/yr Project Ulysses at Townsville, which has attracted funding from investors including Australian carrier Qantas, Airbus and Japanese energy conglomerate Idemitsu Kosan. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump unveils new tariffs on auto imports: Update

26/03/25

Trump unveils new tariffs on auto imports: Update

Adds details throughout Washington, 26 March (Argus) — President Donald Trump said today he would impose a 25pc tariff on foreign-made cars and trucks imported into the US, but said there will be no tariffs on automobiles assembled in the US. Trump said the new tariffs on imported automobiles marked the "beginning of Liberation Day", the term Trump has used to reference his plan to unveil sweeping tariffs on major foreign trade partners on 2 April. The White House estimates the tariff on imported cars and trucks will generate $100bn/yr in new tariff revenue. Trump said the auto tariff will go into effect on 2 April, providing a financial incentive for automakers to relocate manufacturing to the US. "We'll effectively be charging a 25pc tariff, but if you build your car in the United States, there's no tariff," Trump said in remarks at the White House. "And what that means is a lot of foreign car companies, a lot of companies, are going to be in great shape." The auto tariffs will likely add thousands of dollars to the price of many imported cars and trucks. But the tariffs — the details of which have yet to be released — appears more targeted than Trump's initial plan to impose a 25pc tariff on nearly all imports from Canada and Mexico, because the tariffs would not apply to cars and trucks parts, so long as the vehicles are assembled in the US. "Anybody that has plants in the United States it's going to be good for, in my opinion," Trump said. Ontario premier Doug Ford previously warned that Trump's plan to impose a nearly across-the-board import tariff could have caused auto manufacturing in the US and Canada to grind to a halt within as few as 10 days. Trump eventually delayed those tariffs until 2 April. Earlier this week, Trump said that South Korean automaker Hyundai's decision to invest $5.8bn to build a steel mill in Louisiana offered a blueprint for how companies could avoid tariffs. Trump has already imposed a 25pc tariff on steel and aluminum, and earlier this week said he would announce tariffs on imported lumber, semiconductor chips and pharmaceuticals. Even as a lack of details about the upcoming tariffs has fueled uncertainty for businesses and sharp declines on US stock markets, Trump has continued to announce additional tariffs. On Tuesday, Trump said any country taking delivery of Venezuelan oil or gas would be "forced" to pay an incremental 25pc tariff on any goods imported in the US. US oil executives appear to be growing tired of Trump's chaotic trade policy, particularly his imposition of a 25pc tariff on imported steel that is used in drill pipes, executives said in a survey the US Federal Reserve of Dallas released Wednesday. The uncertainty over tariffs and trade policy is causing "chaos", they said in the survey, and increasing their cost of capital. "Tariff policy is impossible for us to predict and doesn't have a clear goal," an unnamed oil executive said in the survey. "We want more stability." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to impose new tariffs on auto imports

26/03/25

Trump to impose new tariffs on auto imports

Washington, 26 March (Argus) — President Donald Trump will announce new tariffs on the automobile industry later today, the White House said, at a time of significant uncertainty about his trade policies. Trump plans to offer further details on the automobile tariffs this afternoon, less than a week before he plans to announce tariffs against major foreign trade partners on 2 April, which Trump has dubbed "Liberation Day". Trump has already imposed a 25pc tariff on steel and aluminum, and earlier this week said he would announce tariffs on imported lumber, semiconductor chips and pharmaceuticals. Trump last month threatened to impose 25pc tariffs on most imports from Canada and Mexico, starting on 4 March — including imported automobiles and vehicle parts — but he eventually offered a one-month reprieve for US automakers before delaying those tariffs entirely until 2 April. The scope and timing of the upcoming automobile tariffs remains unclear, and the White House has yet to provide further details. But Ontario premier Doug Ford previously warned that steep tariffs on Canada could cause auto manufacturing in the US and Canada to grind to a halt within as few as 10 days. Earlier this week, Trump said that South Korean automaker Hyundai's recent decision to invest $5.8bn to build a steel mill in Louisiana offered a blueprint for how companies could avoid tariffs. "This is the beginning of a lot of things happening," Trump said. Even as a lack of details about the upcoming tariffs has fueled uncertainty for businesses and sharp declines on US stock markets, Trump has continued to announce additional tariffs. On Tuesday, Trump said any country taking delivery of Venezuelan oil or gas would be "forced" to pay an incremental 25pc tariff on any goods imported in the US. US oil executives appear to be growing tired of Trump's chaotic trade policy, particularly his imposition of a 25pc tariff on imported steel that is used in drill pipes, executives said in a survey the US Federal Reserve of Dallas released Wednesday. The uncertainty over tariffs and trade policy is causing "chaos", they said in the survey, and increasing their cost of capital. "Tariff policy is impossible for us to predict and doesn't have a clear goal," an unnamed oil executive said in the survey. "We want more stability." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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