US adds 206,000 jobs in June, jobless rate ticks up
The US added a solid 206,000 jobs in June while job gains in the prior two months were revised downward and wage gains cooled.
The job gains, which beat analyst estimates, followed downwardly revised 218,000 job gains in May and 108,000 gains in April, the Bureau of Labor Statistics (BLS) said today, for a combined downward revision of 111,000 for the prior two months.
The US generated a monthly average of 220,000 jobs in the 12 months through May. Economists expected gains of about 190,000 in June, according to a survey by Trading Economics.
The jobless rate ticked up to 4.1pc, the highest in more than two years, from 4pc. Still, the unemployment rate remains near five-decade lows.
Construction added 27,000 jobs, while manufacturing lost 8,000 jobs. Gains also occurred in government, health care and social assistance.
Average hourly earnings rose by 3.9pc from a year earlier, down from a 4.1pc annual gain in the prior month and the lowest in three years.
Futures markets after the jobs report indicated a 71.8pc chance the Fed will cut its target rate by a quarter point from a 23-year high in September, up from 68.4pc odds on Wednesday.
The Federal Reserve, after its last policy meeting in mid-June, had penciled in one likely quarter point rate cut was likely this year, paring that from a likely three cuts shown in March. Still, it also said it needs to see evidence that inflation is "sustainably" slowing towards its 2pc target before beginning to cut rates from 23-year highs.
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British Steel BF problem weighs on UK sections supply
British Steel BF problem weighs on UK sections supply
London, 4 July (Argus) — UK supply of structural steel sections could tighten as a result of a problem with British Steel's Queen Anne blast furnace (BF) at its Scunthorpe site. Damp coke could have caused the furnace problem, according to market participants. British Steel closed its coke ovens in 2023 and relies on imported metallurgical coke. The problem has slowed semi-finished steel production and caused a shortage of process gas for rolling lines. The steelmaker's Teesside Beam Mill is estimated by market sources to have enough semi-finished steel for around two weeks of production when it re-opens next week after a shutdown The reduction in iron making and rolling has caused some gaps to appear in the company's stock and buyers are now having orders for July turned down. One trader was told it would only have availability for late August. Partially as a result of the issues, the company announced two £30/t increases for structural sections in June and is expected to announce another £30-45/t increase in the next few weeks. Steelmaker ArcelorMittal recently tried to implement its own £40/t rise and a leading longs trading firm has hiked its offer to around £750/t. But demand remains sluggish, meaning the increases are not being widely accepted by service centres, which are struggling to pass through rises to their own customers. "We have recently experienced an operational issue with one of our blast furnaces which we are confident will be resolved imminently. We continue to manufacture iron and steel, and are working closely with our customers to satisfy demand and ensure they get the high-quality products they require," a company spokesperson told Argus . By Brendan Kjellberg-Motton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Q&A: RAG says EU lacks clear hydrogen storage rules
Q&A: RAG says EU lacks clear hydrogen storage rules
Brussels, 4 July (Argus) — RAG Energy Storage has been one of the front-runners in hydrogen storage, and established the first operational commercial underground hydrogen storage (UHS) in a depleted gas field in April 2023. Argus spoke to its managing director Georg Dorfleutner, who is calling for a clear framework. Are you OK with the EU apparently scaling back from 10mn t/yr of hydrogen imports? We base the modeling of the report for HeartforEurope more or less on 2030 projections from the RepowerEU strategy. The assumptions on our modelling to identify an investment gap for hydrogen storage were rather conservative — that the only demand would come from industry, thus a rather flat profile over the year without seasonal-shift needs yet. From our side we have multiple potential hydrogen storage projects throughout Europe, but the hydrogen market development and support regimes for infrastructure investments will define the timely realisation. How might any scaling back affect your report's projected 36 TWh H2 storage gap? Whatever happens infrastructure needs to be in place very soon. Our report really underlines the need for a clear framework for hydrogen storage. And we come with a toolbox of different possible measures to support this. Storage tariffs alone won't solve the issue of market ramp-up. Policymakers may feel relieved that the gas and hydrogen decarbonisation package was finished before the EU elections. But our report is more or less saying that this alone will not do the trick. Could a strict EU definition of low-carbon hydrogen hinder growth? The wider and more pragmatic the definitions of low-carbon hydrogen are, the easier market ramp-up will be. Market ramp-up is enormously important for infrastructure. You don't build infrastructure just for demand over the next two years but for the next 10-15 years. Do we need more tailored financial support for UHS, at EU and state levels? There's simply no tailored financial support right now. There's a little aid for hydrogen storage research projects. Currently, policy-making appears focused on whether or not hydrogen infrastructure has to be unbundled. As for financial support, we're completely out of the picture for now. And there's this idea that regulated tariffs make commercially viable projects. But that's not true. It's only booked capacity based on a cost-covering approach that delivers a financially viable project. You don't build infrastructure just to have nice infrastructure without customers. Do we need EU and member state UHS targets? We're not looking for a strict mandatory goal. But if there is a certain goal for hydrogen uptake in the market, then you should ensure that you have the necessary infrastructure in place. That said, targets may be helpful at state level in setting a framework for state aid. But we also have to recognise that Europe is very diversified. Some areas may have very well-functioning hydrogen supply while other landlocked countries might depend on longer supply chains, thus being more dependent on storage. Are markets ready for UHS? Firms are already approaching us. The market is willing, but they need to know what the costs are. The best way forward then is providing clear rules for storage and giving industry a clear pricing idea. There also need to be clear state support mechanisms until we get to cheaper hydrogen and sufficient infrastructure utilisation. In the process of creating UHS capacities we need to keep in mind the SOS for natural gas, which currently is crucial. That's why we focus on new sites — caverns, porous reservoirs and aquifers — rather than repurposing. But at some point, post-2030 with a market ramp-up, decisions on repurposing gas into hydrogen storage will need to be taken. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India's Vedanta iron ore output falls on quarter
India's Vedanta iron ore output falls on quarter
Mumbai, 4 July (Argus) — Indian diversified mining company Vedanta's iron ore production fell in April-June compared to the previous quarter, because of a temporary mining suspension in Karnataka state. The company's total saleable iron ore output totalled 1.3mn t in the first quarter, down by 27pc from the previous quarter. Production of saleable ore from Vedanta's Karnataka operations dropped by 33pc on the quarter and by 4pc on the year to 1.2mn t during April-June, the company said. Iron ore production fell because of a government-ordered suspension of mining activity at Chitradurga district in Karnataka in late April. The order was revoked on 21 May, following which Vedanta restarted operations. But total iron ore output increased on the year, as the company's Goa mine produced about 100,000t of saleable ore. Vedanta started iron ore mining operations at the Bicholim mine in Goa during the April 2023-May 2024 fiscal year, following a six-year hiatus. Pig iron output fell by 4pc on the year to 205,000t in April-June, owing to a blast furnace shutdown towards the end of the quarter. Vedanta's quarterly steel production increased by 10pc on the year to 356,000t, and was 4pc higher compared to the previous quarter. The company's steel plant at Bokaro city in the state of Jharkhand has a hot metal capacity of 1.7mn t/yr, which the company plans to scale up to 3.5mn t/yr in the current fiscal year. It manufactures a range of finished steel products such as wire rod, rebar and ductile iron pipes. Vedanta's iron ore and steel production hit a record high of 5.6mn t and 1.4mn t respectively in the April 2023-March 2024 fiscal year. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s domestic EV sales fall in 1H 2024
Japan’s domestic EV sales fall in 1H 2024
Tokyo, 4 July (Argus) — Japanese sales of domestic passenger electric vehicles (EVs) in the first half of the year fell sharply from the same period a year earlier. Sales totalled 29,282 units during January-June, down by 39pc on the year, according to preliminary data from industry group the Automobile Dealers Association, the Japan Light Motor Vehicle and Motorcycle Association and the Japan Automobile Importers Association (JAIA). The share of EVs in the total passenger vehicles sales was 1.6pc, down by 0.7 percentage points from a year earlier. The sharp fall is mostly attributed to a decline in light passenger EV sales, which fell by 45pc on the year to 13,540 units. This is largely because the sales of Nissan's Sakura, one of the top-selling models in the market with a share of around 90pc, fell to 12,082 units, down by 38pc from a year earlier. Light cars are defined as vehicles with a length, height and width of less than 3.4m, 2m and 1.48m respectively and an engine capacity below 0.66 litres, which is the Japanese standard. Sales of ordinary passenger EVs also fell to 15,742 units, down by 31pc from a year earlier. The rate of decline was lower than that of light passenger EVs because of imported passenger EVs, for which sales increased by 16pc on the year to 10,689 units. Foreign EVs account for around 68pc of ordinary passenger EV sales. Foreign brands are dominating Japan's EV market by "offering wider variety of models than domestic manufacturers," according to a representative of JAIA that spoke to Argus . BMW in June introduced its MINI's EV model to the Japanese market, but the sales volume was undisclosed. Domestic EV sales in June totalled 5,010 units, down by 37pc, marking eight consecutive months of year-on-year declines. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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