Demopolis, Alabama lock to open 30 May: Corps
The failed Demopolis Lock near the junction of the Tombigbee and Black Warrior rivers in Alabama is expected to reopen 30 May after repairs, the US Army Corps of Engineers (Corps) said today.
A clearer timeline for the repairs emerged after a more general May timeline finish date indicated in February.
Work on the lock has been ongoing since it collapsed in early January. Debris has been fully removed and the Corps is working on tests for the concrete mixture. Contractors are currently installing anchors and formwork.
The Corps expects concrete placement to start in mid-April and finish before the end of May.
The cost of the project to date surpassed $21mn, and could rise further the Corps said.
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Technical issues shut Japanese crackers, delay restarts
Technical issues shut Japanese crackers, delay restarts
Singapore, 26 July (Argus) — A series of technical issues forced Japanese cracker operators to shut their units or delay restarts in July, resulting in lower olefins output and higher spot demand. Idemitsu Kosan shut its naphtha cracker in Tokuyama, Yamaguchi prefecture on 15 July, because of gas leakage at its complex. The cracker can produce up to 623,000 t/yr ethylene and 370,000 t/yr propylene. Associated downstream units at the Tokuyama site are likely still operating, resulting in spot demand for prompt ethylene cargoes in the Japanese market, according to market participants. The restart date of the cracker remains unclear, with some market sources saying that the cracker could be on line again in first-half of August. But others said the cracker will be off line until end of August to coincide with Idemitsu Kosan's planned maintenance schedule. Idemitsu Kosan originally planned to shut the Tokuyama-based cracker in September for a 50-day turnaround. The firm declined to comment on the turnaround schedule, citing that the cracker remains shut and it is unsure when it can resume operations. Mitsui's cracker in Sakai, Osaka prefecture also encountered technical issues during its cracker restart. The producer has completed the turnaround, which took place in early July, but will need to procure equipment to address technical issues for the cracker start-up, market participants said. Mitsui's cracker has a nameplate capacity of 600,000 t/yr of ethylene and 280,000 t/yr of propylene. Fellow producer Maruzen Petrochemical also delayed the restart of its cracker in the Chiba prefecture. The cracker was shut on 15 May and was supposed to restart by mid-July. The shutdown has been extended to the end ofJuly, according to market participants. The reason behind the extensions were unclear. Maruzen's Chiba cracker has a production capacity of 525,000 t/yr of ethylene and 335,000 t/yr of propylene. Tighter supplies Shutdown extensions and sudden outages at crackers have tightened olefins supplies in northeast Asia, with Chinese market participants reporting limited offers this week. Asian ethylene prices in the cfr northeast Asia market rose slightly this week to $860-880/t, up by $8/t from the last session, according to Argus ' latest assessments on 24 July. Japan experienced a heavy cracker turnaround season this year, with four crackers conducting scheduled maintenance in the first-half of 2024. Eneos' cracker in Kawasaki prefecture was shut from 5 March until mid-May. Tosoh's Yokkaichi cracker in Mie prefecture was also shut for maintenance from 4 March to the end of April. Keiyo Ethylene's cracker in Chiba prefecture went off line on 10 April for a 14-day planned maintenance. Mitsubishi Chemical's cracker in Kashima, Ibaraki prefecture was shut from May to June. Total ethylene exports from Japan this year are expected to fall from the previous year because of heavy cracker turnarounds. Japan's ethylene exports were at 239,642t during January-May, down by 5,733t from the same period in 2023, according to GTT data. Imports were at 20,296t from January to May, up by 13,500t or almost tripling on the year. By Nanami Oki, Brian Leonal and Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Blast furnace works cut S Korea's Posco 2Q steel output
Blast furnace works cut S Korea's Posco 2Q steel output
Singapore, 26 July (Argus) — South Korean steelmaker Posco reported lower crude steel output and sales in the second quarter because of refurbishments at its Pohang blast burnace, but a higher operating profit. Posco's crude steel production dropped to 8mn t over April-June, from 8.66mn t in the first quarter and 8.85mn t a year earlier, the company said in an earnings call on 25 July. Sales volume also dipped to 7.86mn t, from 8.23mn t in the previous quarter and 8.48mn t a year earlier. The firm's utilisation rates fell to 79.1pc in the second quarter, from 85.6pc in the first quarter and 87.3pc a year earlier. Posco began maintenance and modernisation of its No.4 blast furnace at Pohang in late April, which has a capacity of around 5.3mn t/yr. But production resumed at the end of June, raising its scrap consumption as reflected in its resumption of regular weekly purchases of Japanese scrap after a three-month halt. The group's combined steel revenue, including Posco and overseas steel facilities, stood at 15.4 trillion won ($11.1bn) in the second quarter. This was largely steady from the previous quarter but down from W16.5 trillion a year earlier. Combined steel operating profit stood at W497bn in the second quarter, up from W339bn in the first quarter, but less than half of W1 trillion a year earlier. Posco reported higher mill margins as the cost of raw materials dropped and sales price increased. But overseas upstream operations reported losses given an influx of cheap imports into the southeast Asian market and lower sales prices. Battery, other expansion plans Revenue from secondary battery unit Posco Future M fell by 20pc on the quarter and 23pc on the year to W915bn. Operating profit stood at W3bn, down from W38bn a quarter earlier and W52bn a year earlier. Posco, while citing a difficult battery materials industry over April-June, said during the earnings call that it is "closely monitoring demand fluctuations." The firm will pace its investment, but it will "not lose out" on any opportunity to invest in essential resources such as lithium whose prices have "hit rock bottom." Posco flagged the approaching US presidential election and shifting strategies of major automakers as factors that will continue affecting the EV supply chain. This was echoed by South Korean battery maker LG Energy Solution , which expects global EV market growth to come in at slightly over 20pc this year, down from 36pc a year earlier. Posco's first domestic lithium hydroxide plant, located at the Yulchon Industrial Complex in Gwangyang, with a capacity of 21,500 t/yr aims to start full operations in February 2025. It will be operated by Posco-Pilbara Lithium Solution, a joint venture between Posco and Australia's lithium miner Pilbara Minerals. The company also expects to finish building a second plant at the same location with similar capacity in September whose full operations will begin in September 2025. Its Argentinian lithium operations will have a total capacity of 50,000 t/yr in the near term, split between phase 1 and phase 2, which will start full operations in April 2025 and June 2026, respectively. Trading firm Posco International also reported that the final stage 4 expansion of its Myanmar offshore gas field will start in July, with about 4mn t/yr of By Tng Yong Li and Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
South Africa adopts climate change law
South Africa adopts climate change law
Cape Town, 25 July (Argus) — South Africa's president Cyril Ramaphosa has signed into law the country's climate change bill, which sets out a national response to climate change for the first time. The new climate change act will enable the orderly reduction of greenhouse gas (GHG) emissions through the implementation of sectoral emission targets towards South Africa's commitment to reach net zero by 2050. Currently, the country is the 15th largest GHG emitter in the world, according to the World Resources Institute. The law provides policy guidelines to ensure South Africa reaches its nationally determined contribution (NDC) under the Paris climate agreement by assigning individual enterprises carbon budgets and facilitating public disclosure of their progress. In its updated 2021 NDC, the country has undertaken to cut its GHG emissions to 350mn-420mn t of CO2 equivalent (CO2e), equivalent to 19-32pc below 2010 levels, by 2030. The lower end of this range is in line with the Paris Agreement's 1.5°C global warming threshold. To meet this, South Africa will have to achieve a steep decline in coal-fired electricity generation. A carbon tax is seen as a vital component of the country's mitigation strategy, according to the president. "By internalising the cost of carbon emissions, carbon tax incentivises companies to reduce their carbon footprint and invest in cleaner technologies, and also generates revenue for climate initiatives," Ramaphosa said. South Africa's carbon tax was introduced in a phased approach in June 2019 at a rate of 120 rands/t ($7/t) of CO2 equivalent (CO2e) and increased to R134/t of CO2e by the end of 2022. But tax-free allowances for energy-intensive sectors such as mining, and iron and steel, along with state-owned utility Eskom's exemption, implied an initial effective carbon tax rate as low as R6-48/t of CO2e. South Africa's National Treasury is targeting an increase to $30/t of CO2e by 2030. But the extension of phase one from the end of 2022 to the end of 2025, together with an uncertain future price trajectory and lack of clarity on future exemptions, means the effective carbon tax rate is likely to remain well below the IMF's recommended $50/t of CO2e by 2030 for emerging markets. The new climate change act seeks to align South Africa's climate change policies and strengthen co-ordination between different departments to ensure the country's transition to a low-carbon and climate-resilient economy is not constrained by any policy contradictions. It outlines South Africa's planned mitigation and adaptation actions aimed at cutting GHG emissions over time, while reducing the risk of job losses and promoting new employment opportunities in the emerging green economy. The law also places a legal obligation on provinces and municipalities to ensure climate change risks and associated vulnerabilities are acted upon, while providing mechanisms for national government to offer additional financial support for these efforts. The new act formally establishes the Presidential Climate Commission (PCC) as a statutory body tasked with providing advice on the country's climate change response. Among other things, the PCC is developing proposals for a just transition financing mechanism, for which a platform will be launched in the next few months. Over the last three years, South Africa has seen an increase in extreme weather events often with disastrous consequences for poor communities and vulnerable groups. To address the substantial gap between available disaster funds and the cost of disaster response, the government announced in February that it would establish a climate change response fund. At the time of the announcement, Ramaphosa reiterated that South Africa would undertake its just energy transition "at a pace, scale and cost that our country can afford and in a manner that ensures energy security". Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU could launch 'other countries' HRC dumping probe
EU could launch 'other countries' HRC dumping probe
London, 25 July (Argus) — The European Commission soon could initiate a dumping investigation on some exporters selling into the 'other countries' quota for hot-rolled coil (HRC), according to multiple market sources. The 'other countries' quota in recent quarters has consistently filled rapidly upon resetting, and this pressure has been intensified by rising Chinese exports since August of last year. Some key 'other countries' sellers have seen the volumes they take from China balloon as a result. Vietnam bought more than 4.2mn t from China in the first six months of this year, compared with about 6mn t in the whole of 2023. China's increased exports has sparked talk that both India and Vietnam may start anti-dumping duty investigations. When announcing its 15pc cap on countries selling into the 'other countries' quota, the commission specifically alluded to the increase in Chinese exports affecting trade flows. Vietnam, Egypt, Japan and Taiwan are by far the largest sellers into the 'other countries' quota, and all of the countries initially exceeded their 141,849t cap quickly when the new quotas took force on 1 July. In April, before the cap was implemented, these four countries amounted for more than half of the 1.4mn t imported by the EU. The 'other countries' quota has essentially been reduced from 940,000 t/quarter to less than 600,000 t/quarter given the new cap. Sources suggested duties could be applied retroactively if the commission finds that material has been dumped. They also suggested it could be difficult to show dumping in some countries, such as Vietnam and Egypt, where domestic prices are often below export levels. A leading producer was gathering information on Egyptian cargoes arriving at EU ports in recent months, a trading firm said. The commission refused to comment on any potential investigation. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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