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NorthAm auto summer shutdowns begin next week

  • : Coking coal, Metals, Petrochemicals
  • 23/06/22

Most North American automakers are moving ahead with their summer shutdown schedule even as the cadence is shorter than usual.

Nissan's three US-based auto plants and Kia's Georgia compact utility vehicle and sedan plant will close from 26 June through 7 July.

General Motors (GM) will take down some of its US plants the 3 July week, saying its Bowling Green, Factory Zero, Ft Wayne, Lansing Grand River, Spring Hill and Wentzville plants will take outages. Those plants produce midsize pickups trucks, full-size pickup trucks, full-size SUVs, sports cars and sedans, and EV SUVs and trucks, primarily the Lyriq and Hummer models.

In Canada, GM's CAMI EV van plant will be down from 3-16 July, while its Oshawa, Ontario, and Silao, Mexico, full-size pickup truck plants will be down from 3-9 July.

Stellantis will take multiple outages, with its Detroit Mack and Jefferson, Sterling Heights and Toledo plants down the week of 26 June, and its Brampton, Ontario, and Saltillo, Mexico, plants down the week of 3 July. Its Warren truck plant and Windsor, Ontario, plant will be down the week of 21 August.

Toyota will shut down all of its 14 plants in Canada, Mexico and the US from 17-23 July with its US plants shut on the 4 July holiday.

Honda's more than a dozen plants across the three countries will take outages, with the plants in Canada and the US down from 3-7 July and its Mexico plant 14-18 August.

Hyundai's sedan and SUV plant in Alabama will be down from 1-10 July.

BMW's Spartanburg, South Carolina SUV plant will closed from 3-9 July.

Daimler's Tuscaloosa, Alabama SUV plant will closed for 1-4 July, taking a three day closure as the plant does not operate on Sundays.

Ford did not specify any planned summer outages, while Volvo did not respond to requests for comment.

The automotive industry is one of the largest consumers of steel products in North America. The average North American vehicle contains 1,980 lbs of steel, of which approximately 1,480 lbs are flat-rolled products, as well as 486 lbs of aluminum, according to data from the American Iron and Steel Institute's automotive program.


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24/12/03

Mexico factory contraction eases in November

Mexico factory contraction eases in November

Mexico City, 3 December (Argus) — Mexico's manufacturing sector contracted again in November, but at a slower pace than the previous month, according to the Mexican finance executive association's (IMEF) latest purchasing managers index (PMI) surveys. The manufacturing PMI rose to 48.3 from 47.2 in October, inching closer to the 50-point threshold that signals expansion. Still, the index remained in contraction territory for an eighth consecutive month. "There is some stabilization in the loss of economic momentum recorded in previous months," IMEF noted, but the overall trend reflects "stagnation or the absence of solid expansion in both manufacturing and non-manufacturing sectors." Manufacturing accounts for about a fifth of Mexico's economy. Within the manufacturing PMI, the new order index increased by 1.3 points to 47.3 but stayed in contraction. Production fell by 0.5 points to 46.1, with both sub-indicators in contraction for an eighth month. In contrast, non-manufacturing industries—including services and commerce—moved into expansion territory, rising to 50.5 in November from 49.3 in October. New orders in this sector climbed 2.1 points to 51.5, production rose 1.8 points to 50.5 and employment rose by 1.2 points to 49.1, though it remained in contraction for a fifth consecutive month. Inflation concerns raised Looking ahead, IMEF highlighted potential inflationary pressures tied to US President-elect Donald Trump's policies. These include possible supply chain disruptions driven by escalating conflicts with Russia and in the Middle East as Trump shifts toward a more transactional approach with traditional allies. IMEF also warned that Trump may seek to influence the US Federal Reserve to accelerate rate cuts, further fueling inflation. Domestically, deregulation and tighter migration constraints may fail to ease trade bottlenecks. Meanwhile, tax cuts without corresponding spending reductions could add significant upward pressure on prices, IMEF said. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s BHP and APA partner to cut GHG emissions


24/12/03
24/12/03

Australia’s BHP and APA partner to cut GHG emissions

Sydney, 3 December (Argus) — Australian energy firm APA Group has opened a solar farm and battery storage facility at Western Australia's Port Hedland in a move designed to support mineral giant BHP's emissions-reduction goals. APA's plant will power most of BHP's Port Hedland operations from January 2025, under the terms of a power purchase agreement signed between the two firms. Work on the project began last year, supported by a A$1.5mn ($970,000) grant from Western Australia's Clean Energy Future Fund. BHP is planning to reduce its operational greenhouse gas (GHG) emissions by 30pc from 2020 levels within the next six years, without using carbon credit schemes. In the 2023-24 financial year, the company's operational GHG emissions were 32pc lower than 2020 levels at 9.2mn t of CO2 equivalent, despite increasing 2pc on the year. BHP exports Western Australian iron ore through Port Hedland. Shipping data indicates that the company loaded an average of 5.94mn dwt/week of ore over the last three months . Argus ' iron ore fines 65pc Fe cfr Qingdao price was relatively stable over that period, growing from $113/t to $117/t. The Port Hedland opening comes just weeks after Prime Minister Anthony Albanese's government updated Australia's national emissions projection to forecast a 65.7pc baseline drop in electricity emissions, relative to 2020 levels, by the end of the decade. The government was forecasting a more modest 53pc decline in electricity emissions last year. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Countries diverge on plastic production in global talks


24/12/02
24/12/02

Countries diverge on plastic production in global talks

Singapore, 2 December (Argus) — Countries have failed to reach a consensus in negotiations for a global treaty to tackle plastic pollution, partly because of disagreements about whether its scope should include plastic production. The fifth session of the UN's Intergovernmental Negotiating Committee (INC) which took place over 25 November-1 December was supposed to result in an international, legally binding instrument to tackle plastic pollution. But negotiations ultimately ended without an agreement in South Korea on 1 December. The UN Environment Programme's (UNEP's) executive director Inger Andersen acknowledged on 1 December that the session did "not quite" achieve consensus, but added that it is "not for want of trying". Countries instead agreed on a draft text, which will "serve as the starting point for negotiations" next year, the UNEP said on 2 December. Plastic production A key point of disagreement was regarding the inclusion of a legally-binding pledge to cut plastic production, echoing the discussions during a preliminary meeting in September when plastic production limits also emerged as a major sticking point. Many countries want the treaty to tackle the entire plastic value chain, including production, but this met resistance from oil-producing countries. Panama on 28 November put forth a proposal, backed by over 100 countries, to adopt a global target to "reduce the production of primary plastic polymers to sustainable levels" under article 6 of the draft text. It also suggested that countries must report their production, imports and exports of primary plastic polymers and measures taken to achieve the global target. But Kuwait, on behalf of like-minded countries, reiterated on 1 December that "the objective of this treaty is to end plastic pollution — not plastic itself." Kuwait hopes that the treaty will address the "core issue" of plastic pollution through "improved waste management systems, recycling infrastructure, and innovations in material design", as opposed to plastic production cuts. "Attempting to phase out plastic as a material, rather than addressing the issue of plastic pollution, risks undermining global progress and exacerbating economic inequalities," Kuwait added, noting that there has been no solution offered on what can replace plastic across its applications. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

PPO producer Pryme raises capex forecast


24/11/29
24/11/29

PPO producer Pryme raises capex forecast

London, 29 November (Argus) — Dutch plastic-derived pyrolysis oil (PPO) producer Pryme said capital expenditure (capex) will be "significantly higher" than initially estimated for its second planned site in northern Europe, known as Pryme Two. Pryme Two will feature three-five reactor chains with an expected annual output of 50,000-80,000 t/yr of PPO when completed, the company said. Changes to expected reactor train capacities and other design elements as a result of learning from its first site, Pryme One, have led it to increase its capex forecast for the project, although it did not provide further details. Plans for further sites, Pryme Three and Four, remain on hold until funding has been secured for Pryme Two, the company said. The company also announced it had produced 100t of PPO in October and November, bringing the annual yield of PPO to 336t from its Pryme One site. The site will undergo maintenance in the remainder of 2024, and does not expect any more meaningful volumes until 2025. The company is seeking a capital increase of €8-10mn ($8.5mn-10.6mn) "as soon as practicable" in order to support operations, as Pryme One is not expected to reach breakeven cash flow until late 2025 or early 2026, according to the company. The company said it is in the process of renegotiating with its suppliers and customers as it needed to "achieve improved commercial terms" to avoid operating at a loss even when Pryme One achieves production rates in line with its nameplate capacity, which Pryme expects in late 2025. The company said the net loss for October 2024 was €1.9mn and a similar loss is expected in November. As of 28 November, Pryme had a cash balance of €7.4mn. In the third quarter earnings report in November, Pryme said it had revised down the stated production capacity of the plant to 16,700 t/yr from 30,000 t/yr. This is a result of a lower feedstock-to-oil yield expectation — 65pc, compared with a previous estimate of 75pc — and a reduction in the plant's expected input processing capacity to 26,000 t/yr from 40,000 t/yr, as the downtime needed for reactor feeding, and cleaning and maintenance of equipment has proved longer than expected. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU recyclers need support: Sustainable Packaging Summit


24/11/29
24/11/29

EU recyclers need support: Sustainable Packaging Summit

Future regulations give certainty to the recycling industry for the long term, but prompt support is needed to ensure the industry continues to develop London, 29 November (Argus) — Recyclers warned the packaging industry that they needs support now to ensure enough supply will be available for future pledges and legislative targets at Packaging Europe's recent Sustainable Packaging Summit in Amsterdam. Mapping the sustainability challenge Delegates at the summit heard there is growing concern across the value chain around how to bridge the gap between now and 2030 to ensure the recycling industry can survive and continue necessary growth. In the interim years there are significant challenges in the market for recyclers which risk the secure availability of supply that brands and packaging companies need to reach desired recycled content goals in the future. Recyclers stated the industry in Europe is currently in decline, with a swathe of closures recently announced across the region and a lack of investment. Higher fixed costs in Europe, such as the price of electricity, hamper recyclers' ability to remain competitive on world scale, along with subdued demand for recyclates, exacerbated by low cost virgin material and rising imports. Brands noted less focus on sustainability from consumers and companies impacted by reduced consumer confidence and spending. Combined with the availability of lower cost virgin alternatives, this is said to be weighing on the urgency to increase recycled content as companies focus on the bottom line to manage the wider economic challenges the industry is facing. The industry must maintain sustainability momentum, and that sustainability must remain an advantage for companies for the recycling industry to continue to develop, delegates said. Navigating regulatory landscape Uncertainty in the market is hitting investment hard, and regulation is a fundamental step to providing clarity and stability for the European industry, but comes with its own challenges. The Packaging and Packaging Waste Regulation (PPWR) — which passed through the corrigendum procedure at this week's EU plenary and is now expected to be adopted by ministers on 16 December — is the first time that the waste hierarchy will be regulated consistently across EU member states. This is expected to ease uncertainties in the industry and add confidence in investments and further business planning as and when confirmed. The regulation is the most wide-reaching and ‘most challenging', due to the divergence of industries and interests across the value chain, Wolfgang Trunk, policy officer for the European Commission, said. "It is not perfect" he said, but considering the complexities "we can be content with what is now in the text. There are a lot of issues there, but we are convinced we can remedy and mitigate any concerns. We had to suffer a lot of national derogations at cost of harmonisation, or the scaling up of internal market benefits". Once the text is published the industry will try to adapt to the new framework. Trunk said it is only then the commission will observe the developments and as a backup and as last resort make amendments for specific streams or products which have encountered difficulties as a result of the regulation to come up with a solution. Positive sentiment regarding PPWR was shared by delegates, with may affirming that the industry is ready to move forward to meet the new requirements and quick action is needed to develop and implement the secondary legalisation that is anticipated. But the secretary-general of packaging organisation Europen Francesca Siciliano Stevens reaffirmed that the regulation does not go far enough in securing the single EU market and safeguarding European competitiveness on the global level. The drawbacks of a fragmented market, with varying national regulation and extended producers responsibility (EPR) schemes, were also highlighted, with delegates calling for a singular circular market. Some participants feel that harmonisation remains the weakest part of the regulation, and that political agendas have remained a barrier to overcome these difficulties. It is hoped that swift adoption of secondary legalisation, harmonised standards and the issue of necessary guidance will smooth the adoption of the PPWR. A proposed EU Circular Economy Act, presented in Ursula von der Leyen's policy guidelines upon her re-election as the president of the European Commission in July, was mentioned as a possible measure to reduce the exposure of the recycling industry to cheap virgin polymer prices. But, given the complexities and length of these legislative processes, recyclers may be entitled to reservations on how effectively this will support them in the short term. Reporting headache Packaging companies represented at the summit asked regulators to consider the need to reduce the reporting burden to help circular economy development. Frequent references were made to a ‘tsunami' of regulation, and the burden of reporting challenges around accurate and credibility in data were highlighted across the value chain. Non-harmonised EPR is a concern for the industry, with each member state implementing their own regulations. For global brands there could be upwards of 25 different policies with varying implications to adhere to in Europe alone. Participants called for clear standards and guidelines, as well as and harmonisation in data collection and reporting methodologies across the region in order to navigate the forthcoming headwinds. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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