Latest Market News

US against EU push to censure Iran for nuclear activity

  • Spanish Market: Electricity, Metals
  • 27/05/24

US president Joe Biden's administration is opposing a European push — spearheaded by France — to rebuke Iran for advances in its nuclear program at the UN nuclear watchdog the IAEA's board of governors meeting in June, a diplomatic source with knowledge of the matter told Argus.

"The US isn't enthused about the European effort to censure Iran at the IAEA's member state board meeting in early June," the diplomat said. "But there is a general European atmosphere that is exploring options and measures regarding Iran's nuclear program."

The Biden administration is concerned about the need to manage tensions with Tehran, particularly at what is a highly sensitive moment, the source said.

"Bear in mind, this board of governors meeting is happening around 10 days after the helicopter crash killed (Iran's president Ebrahim) Raisi and (foreign minister Hossein) Amir-Abdollahian" both of whom were primary interlocutors with IAEA director General Rafael Grossi on the nuclear file, the source said.

"There is currently a vacuum in Tehran. Timing is bad," the source said, explaining the US position.

A US State Department spokesman could not be reached for immediate comment.

Concerns among western officials have grown over Iran's nuclear activity in recent years. Former US president Donald Trump in 2018 pulled the US out of a 2015 nuclear deal, resulting in an erosion of strict limits that the agreement had placed on Iran's nuclear program.

Iran, in 2019, began breaching the restrictions and then pushed far beyond them. Tehran has enough highly enriched fissile material for three nuclear weapons, according to the IAEA. Iran is enriching uranium to up to 60pc purity, close to the near 90pc considered to be weapons grade, according to the IAEA.

Grossi in March said inspections in Iran were not what they should have been and called for additional monitoring capabilities, given the depth and breadth of the program.

"On Iran, recent negative developments haven't gone unnoticed. Nuclear threats by Iranian officials, and Grossi's recent interview all sent negative signals," the source said.

The Biden administration has always maintained that it is seeking a diplomatic solution for Iran's nuclear program. And since the conflict between the Gaza-based Palestinian militant group Hamas, backed by Iran, and Israel broke out, the US has attempted to stop the spillover of the conflict into the wider region.

US and Iranian officials have met at least twice for indirect talks in Oman this year.

What are the options?

"There is real concern nowadays within the international community that no one exactly knows where Iran is at the moment when it comes to nuclear enrichment," the source says. The IAEA has lost its "continuity of knowledge" in relation to the production and inventory of centrifuges, rotors and bellows, heavy water and uranium ore concentrate.

"But the options are limited," the source said. The most the IAEA can do if a state is out of compliance with its obligations under the Non-Proliferation Treaty Safeguards Agreement is to report its concerns to the UN Security Council.

Since June 2020, The IAEA's board of governors has adopted three resolutions regarding Iran's cooperation regarding the non-proliferation agreement.

"Two reports are to be published ahead of the meeting in June. Their outcome will set the scene on whether another resolution will adopted or not," the source said.


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.

26/07/24

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.

Australia’s Empire Energy signs deal to sell gas to NT


26/07/24
26/07/24

Australia’s Empire Energy signs deal to sell gas to NT

Adelaide, 26 July (Argus) — Australian independent Empire Energy has signed an agreement to supply the Northern Territory (NT) with gas from its Carpentaria project in the onshore Beetaloo subbasin. Empire will supply NT with up to 25 TJ/d (668,000 m³/d) of gas over 10 years, starting from mid-2025. This equates to an estimated total supply of 75PJ (2bn m3) of gas. The deal includes scope for an additional 10 TJ/d for up to 10 years if production level at the Carpentaria plant exceeds 100 TJ/d. The firm bought domestic utility AGL Energy's dormant 42 TJ/d Rosalind Park gas plant late last yearwith plans to reassemble the facility on site at Carpentaria, subject to a final investment decision on the project. Gas will be delivered to the NT government-owned Power and Water (PWC) via the McArthur River gas pipeline on an ex-field take-or-pay basis, Empire said on 26 July. PWC in April signed an agreement to buy 8.6PJ of gas from Australian independent Central Petroleum , to supply gas-fired power generation and private-sector customers. Low production at Italian energy firm Eni's Blacktip field, offshore the NT, has led PWC to court new supply while providing a new outlet for prospective producers operating within Beetaloo. The largest Beetaloo acreage holder, Tamboran Resources, has revealed ambitious plans for a 6.6mn t/yr LNG plant to be located near Darwin Harbour's two existing LNG projects, using the basin's shale gas resources as feedstock. By Tom Major 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


25/07/24
25/07/24

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.

China raises EV, ICE vehicles trade-in subsidies


25/07/24
25/07/24

China raises EV, ICE vehicles trade-in subsidies

Beijing, 25 July (Argus) — The Chinese government has raised subsidies to boost trade-in of old internal combustion engine (ICE) vehicles with new energy vehicles (NEV). The subsidy for consumers who trade in an old NEV registered before 30 April 2018 or an ICE vehicle that meets or is below China's national 3 emission standard for a new NEV has doubled to 20,000 yuan from a previous subsidy announced in May . Electric vehicles cost anywhere between Yn50,000 to Yn1mn, with consumers mostly purchasing those in the Yn100,000-200,000 range, according to industry participants. The government is also offering a Yn15,000 subsidy for consumers who trade in an old NEV registered before 30 April 2018 or an ICE vehicle that meets or is below China's national 3 emission standard, and purchase a new ICE vehicle with the displacement below 2.0 litre. Beijing in early March announced a plan to promote the replacement of industrial equipment and consumer goods through large-scale trade-ins, with NEVs making up the main part of the scheme, as part of Beijing's efforts to meet its annual economic growth target of 5pc. China's ministry of finance announced on 3 June that it will allocate Yn6.44bn to local governments to pay the subsidies for vehicle trade-ins in 2024, including Yn107mn to Tianjin, Yn90.81mn to Shanghai, Yn74.61mn to Beijing and Yn66.49mn to Chongqing. The central government announced on 29 May that it will remove purchase restrictions for NEVs during 2024-25, with the capital city Beijing allocating 20,000 additional purchase quotas for NEVs to families without a car. China produced 1.003mn NEVs in June, up by 28pc from the previous year and by 6.7pc from May, with sales increasing by 30pc from a year earlier and by 9.8pc from the previous month to 1.049mn, partly driven by the country's supportive measures, especially the trade-in subsidies. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Refining, LNG segments take Total’s profit lower in 2Q


25/07/24
25/07/24

Refining, LNG segments take Total’s profit lower in 2Q

London, 25 July (Argus) — TotalEnergies said today that a worsening performance at its downstream Refining & Chemicals business and its Integrated LNG segment led to a 7pc year-on-year decline in profit in the second quarter. Profit of $3.79bn was down from $5.72bn for the January-March quarter and from $4.09bn in the second quarter of 2023. When adjusted for inventory effects and special items, profit was $4.67bn — slightly lower than analysts had been expecting and 6pc down on the immediately preceding quarter. The biggest hit to profits was at the Refining & Chemicals segment, which reported an adjusted operating profit of $639mn for the April-June period, a 36pc fall on the year. Earlier in July, TotalEnergies had flagged lower refining margins in Europe and the Middle East, with its European Refining Margin Marker down by 37pc to $44.9/t compared with the first quarter. This margin decline was partially compensated for by an increase in its refineries' utilisation rate: to 84pc in April-June from 79pc in the first quarter. The company's Integrated LNG business saw a 13pc year on year decline in its adjusted operating profit, to $1.15bn. TotalEnergies cited lower LNG prices and sales, and said its gas trading operation "did not fully benefit in markets characterised by lower volatility than during the first half of 2023." A bright spot was the Exploration & Production business, where adjusted operating profit rose by 14pc on the year to $2.67bn. This was mainly driven by higher oil prices, which were partially offset by lower gas realisations and production. The company's second-quarter production averaged 2.44mn b/d of oil equivalent (boe/d), down by 1pc from 2.46mn boe/d reported for the January-March period and from the 2.47mn boe/d average in the second quarter of 2023. TotalEnergies attributed the quarter-on-quarter decline to a greater level of planned maintenance, particularly in the North Sea. But it said its underlying production — excluding the Canadian oil sands assets it sold last year — was up by 3pc on the year. This was largely thanks to the start up and ramp up of projects including Mero 2 offshore Brazil, Block 10 in Oman, Tommeliten Alpha and Eldfisk North in Norway, Akpo West in Nigeria and Absheron in Azerbaijan. TotalEnergies said production also benefited from its entry into the producing fields Ratawi, in Iraq, and Dorado in the US. The company expects production in a 2.4mn-2.45mn boe/d range in the third quarter, when its Anchor project in the US Gulf of Mexico is expected to start up. The company increased profit at its Integrated Power segment, which contains its renewables and gas-fired power operations. Adjusted operating profit rose by 12pc year-on-year to $502mn and net power production rose by 10pc to 9.1TWh. TotalEnergies' cash flow from operations, excluding working capital, was $7.78bn in April-June — an 8pc fall from a year earlier. The company has maintained its second interim dividend for 2024 at €0.79/share and plans to buy back up to $2bn of its shares in the third quarter, in line with its repurchases in previous quarters. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. 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