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Maersk warns of US east, Gulf coast ports strike

  • Spanish Market: Metals, Oil products, Petrochemicals
  • 02/01/25

Containership owner Maersk is warning clients that a potential port labor strike could disrupt cargo shipping operations on the US east coast and Gulf coast later this month.

A temporary agreement on wages that was struck in October between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) is set to expire on 15 January. The short-term agreement, which ended a brief strike, was intended to provide more time for negotiating the remaining contract issues.

"Considering the status, we strongly encourage our customers to pick up their laden containers and return empty containers at US east and Gulf coast ports before 15 January," Maesrk said on 31 December. "This proactive measure will help mitigate any potential disruptions at the terminals."

During negotiations last year, the ILA's demands included no new automation technology at US ports that would replace workers, describing this position as "non-negotiable".

US president-elect Donald Trump appeared to back the union after meeting with ILA's president and executive vice president in mid-December. "The amount of money saved [from automation] is nowhere near the distress, hurt, and harm it causes for American workers, in this case, our longshoremen," Trump said on social media.

The US president does not have direct power over union negotiations, but the president can issue executive orders affecting workers and intervene in strikes, if doing so would be in the national interest.

The current labor agreement covers approximately 25,000 workers employed in container and roll-on/roll-off operations at ports from Maine to Texas.

Movements of dry bulk cargo, such as coal and grains, are expected to be less affected by any work stoppage, though there could be side effects from the congestion of other products being rerouted to ports not affected by the strike.

Movement of crude, refined products and many petrochemicals would like be unaffected by a strike, as ILA members do not work within the private terminals that handle nearly all US dry bulk, oil, and gas exports. But some polymers that are moved by container, including polyvinyl chloride, polyethylene, and polypropylene, could be disrupted.

A segment of US steel imports could also be disrupted by the strike, as about 9pc of those imports come in via containers, according to data from Global Trade Tracker.


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04/04/25

South Africa Natref to end bitumen production from Sep

South Africa Natref to end bitumen production from Sep

London, 4 April (Argus) — Bitumen production at Natref's 107,000 b/d Sasolburg refinery in South Africa will cease from September, ending all the country's output of the heavy oil product. Several South African bitumen market participants, including buyers from the refinery and suppliers of imported bitumen into the domestic and regional southern African markets, said officials from majority Natref shareholder Sasol had been informing customers of the planned move over the past week. Customers were told that final bitumen supply from stocks held at the refinery would be supplied to them into October, with all supplies ending thereafter. Market participants said the Natref plan is linked to a wider move of switching to sweeter crudes aimed at maximising output of light and middle distillates, which would also hit output of heavy products other than bitumen, notably high-sulphur fuel oil (HSFO). Officials at Sasol, which owns 63.3pc of Natref alongside UK energy firm Prax with 36.4pc, have so far not responded to Argus' requests for comment. South African market participant said the move had been under consideration for some time, even before Prax agreed to buy TotalEnergies' Natref stake in December 2023. South Africa turned from a major net exporter of bitumen, mainly to its southern African neighbours, to becoming increasingly dependent on imports after several of the country's refineries were either shut down or ended their bitumen production since 2020. South African cargo imports in bitumen tankers surged to nearly 200,000t in 2024, according to Vortexa data, mostly into Durban and some into Cape Town. Mediterranean supplies, mainly from Greece and Turkey, made up just over half of these, with Rubis and Continental supplying most. Mideast Gulf storage points, along with Bahraini state-owned Bapco's refinery and export terminal at Sitra, supplied around a third, while emerging exporter Pakistan shipped 8pc. According to a South African bitumen supplier, the Natref refinery's bitumen production fell last year to 45,000-50,000t — from an Argus estimate of 140,000t in 2023 — because of numerous plant halts and interruptions. The market effect of Natref ending its bitumen output will therefore be limited, with another leading South African participant saying truck flows from the inland refinery had become increasingly unreliable. The halt will nevertheless trigger more South African import requirements that are anyway likely to rise sharply in the coming years because of much-enhanced government infrastructure budgets. The Natref refinery was forced to stop all production for about two months following a fire in early January this year. French construction and bitumen supply firm Colas recently became the latest company to take a South African import asset position, agreeing a long-term deal with local firm FFS Refiners to operate four of five new bitumen tanks at an existing Durban facility once an FFS expansion there is completed, likely in the second half of this year. By Keyvan Hedvat and Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Funding cuts could delay US river lock renovations


03/04/25
03/04/25

Funding cuts could delay US river lock renovations

Houston, 3 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennesee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock and Lock 25 on the Illinois River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico, Canada sidestep latest Trump tariffs: Update


03/04/25
03/04/25

Mexico, Canada sidestep latest Trump tariffs: Update

Adds Canada reaction Mexico City, 3 April (Argus) — US president Donald Trump's sweeping tariff measures largely spared Mexico and Canada from additional penalties, as the US-Mexico-Canada free trade agreement (USMCA) will continue to exempt most commerce, including Mexico's energy exports. According to Trump's tariff announcement on Wednesday , all foreign imports into the US will be subject to a minimum 10pc tax starting on 5 April, with levels as high as 34pc for China and 20pc for the EU. Mexico and Canada are the US' closest trading partners and have seen tariffs imposed and then postponed several times this year, but remained mostly exempt from Trump's "reciprocal" tariffs. Energy and "certain minerals that are not available in the US" imported from all other countries also will be exempt from the tariffs. Trump also did not reimpose punitive tariffs on energy and other imports from Canada and Mexico. All products covered by the USMCA, which include energy commodities, are exempt as well. Yet steel and aluminum, cars, trucks and auto parts from Mexico and Canada remain subject to separate tariffs. Steel and aluminum imports are subject to 25pc, in effect since 12 March. The 25pc tariff on all imported cars and trucks will go into effect on Thursday, whereas a 25pc tax on auto parts will go into effect on 3 May. Mexico's president Claudia Sheinbaum this morning emphasized the "good relationship" and "mutual respect" between Mexico and the US, which she said was key to Trump's decision to prioritize the USMCA over potential further tariffs on Mexican imports. "So far, we have managed to reach a relatively more privileged position when it comes to these tariffs," Sheinbaum said. "Many of our industries are now exempt from tariffs. We aim to reach a better position regarding steel, aluminum and auto parts exports, too." The Mexican peso strengthened by 1.5pc against the US dollar in the wake of the tariff announcement, to Ps19.96/$1 by late morning on Thursday from Ps20.25/$1 on Wednesday. Mexico has not placed any tariffs on imports from the US, which may have eliminated the need for the US to reciprocate with tariffs. "In contrast to what will apply to 185 global economies, Mexico remains exempt from reciprocal tariffs," Mexico's economy minister Marcelo Ebrard said. Mexico exported 500,000 b/d of crude to the US last year, making the US by far the most important export market for the nation's commodity. Mexico also imports the majority of its motor fuels and LPG from the US. If US won't lead, Canada will: Carney To the north, Canada's prime minister says the US' latest trade actions will "rupture" the global economy. "The global economy is fundamentally different today than it was yesterday," said prime minister Mark Carney on Thursday while announcing retaliatory tariffs on auto imports from the US. Canada is matching the US with 25pc tariffs on all vehicles imported from the US that are not compliant with the USMCA, referred to as CUSMA in Canada. But unlike the US tariffs, which took effect Thursday, Canada's will not include auto parts. Automaker Stellantis has informed Unifor Local 444 that it is shutting down the Windsor Assembly Plant in Ontario for two weeks starting on 7 April, with the primary driver being Trump's tariffs. The closure will affect 3,600 workers. Trump on 2 April unveiled a chart of dozens of countries the US is targeting with new tariffs, but that lengthy list may also represent opportunity for Canada and Mexico, who have already been dealing with US trade action. "The world is waking up today to a reality that Canada has been living with for months," Canadian Chamber of Commerce president Candace Laing said, a reality which Carney views as an opportunity for his country. "Canada is ready to take a leadership role in building a coalition of like-minded countries who share our values," said Carney. "If the United States no longer wants to lead, Canada will." By Cas Biekmann and Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Stellantis idles plants, lays off 900 on US tariffs


03/04/25
03/04/25

Stellantis idles plants, lays off 900 on US tariffs

Sao Paulo, 3 April (Argus) — Stellantis is pausing production at two factories in Canada and Mexico and laying off 900 workers at US plants as the company evaluates the effect of US automotive import tariffs. Effective immediately, Stellantis will temporarily pause production at the Windsor Assembly Plant in Canada, resuming production in the week of 21 April, the company said Thursday. In Mexico, the Toluca Assembly Plant will halt production on 7 April through the end of the month. As a result, the company will temporarily lay off 900 workers at five US stamping, casting and transmission plants in Michigan and Indiana that supply assembly plants. The automaker attributed the decision to the "new automotive sector tariffs now going into effect". A 25pc tariff on all cars and trucks imported into the US took effect on Thursday and a 25pc tax on auto parts will go into effect on 3 May. Stellantis is monitoring the tariff situation to assess whether further action is required, North America chief operating officer Antonio Filosa said in an internal email shared with Argus . The moves affect production of Chrysler Pacifica minivans, Jeep's Compass and Wagoneer, and Dodge's new electric muscle car, the Charger Daytona. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs some steel inputs, spares others


03/04/25
03/04/25

Trump tariffs some steel inputs, spares others

Pittsburgh, 3 April (Argus) — US president Donald Trump imposed a sweeping tariff regime Wednesday that will raise the cost of raw materials for steelmakers that operate electric arc furnaces. Pig iron from Brazil, direct reduced iron from Trinidad, and ferrous scrap from the UK will face 10pc tariffs. Ferrous scrap imports from the EU will face a 20pc levy. The tariffs begin April 5 and will not include shipments already in transit before that date. Two notable exceptions from the announced tariffs are scrap from Mexico and Canada. Canadian and Mexican scrap In February and March, Trump placed 25pc taxes on all imports from Mexico and Canada, before rescinding the tariffs days later in both instances. Many Canadian dealers paused US-bound shipments because of the uncertainty. The shifting trade policy partially caused US ferrous scrap imports from Canada to fall to 188,000 metric tonnes (t) in February, the lowest volume since May 2020 during the height of the pandemic, US customs data shows. Scrap dealers in Canada have begun to breathe a sigh of relief. The paused Canadian scrap shipments to the US will likely restart in April because Trump excluded the country from the latest tranche of tariffs, a Canadian dealer told Argus . Separate 25pc tariffs on Canadian steel, aluminum and automobiles are still in effect, however. The steel tariffs could temper flat-rolled steel mills' appetite for scrap this month because they rely on the US market for steel sales, the dealer noted. Brazilian pig iron and Trinidadian direct reduced iron Some US steel mills pivoted to the pig iron market in February and March because of the tariff uncertainty around Canadian and Mexican scrap. The move contributed to soaring US imports of pig iron in March. The US imported an estimated 535,000t of pig iron from all countries last month, more than double the total from the previous March, according to US vessel manifest data and US customs data. Vessel manifest data shows that the total included about 380,000t of pig iron last month from Brazil, the largest supplier to the US market. That could be the highest volume of Brazilian pig iron imported since January 2024 if the official US customs data confirms the sum. Trump's 10pc tariffs on imports from Brazil, Ukraine and other pig iron producing countries could drive up costs for US steelmakers, especially those with electric arc furnaces (EAF). The 10pc levy will also apply to Nucor's direct reduced iron (DRI) plant in Trinidad. Nucor, the US' largest EAF steelmaker, imports about 125,000t of DRI each month from its Trinidad plant. Nucor did not respond to a request for comment on the Trinidad tariffs. The tariffs on iron metallics announced Wednesday could cause steelmakers to raise their steel selling prices even more. US hot-rolled coil prices have already risen by 22pc since Trump announced the 25pc steel tariffs on 10 February. European and UK scrap EAF steelmakers in the US often look to Europe for prime scrap when US prices surge. That occurred in the first quarter of this year, when average #1 busheling prices rose by 25pc to $470/gross ton (gt) during that time. The US imported about 163,000t of busheling and shredded scrap in bulk cargoes from Europe last month, according to vessel manifest data . Not since June 2022 had the US imported more bulk ferrous scrap from Europe, US customs data showed. The new tariffs on UK and EU-origin scrap could make locally sourced scrap more attractive to US steelmakers. By James Marshall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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