Canadian rail labor talks continue as deadline nears
Canadian railroads and a major labor union are still in discussions in the final hours before workers could go on strike.
Contract negotiations between Canadian Pacific Kansas City (CPKC), Canadian National (CN) and Teamsters Canada Rail Conference (TCRC) continued today, CPKC said. If there is no agreement tonight, the union at 12:01am ET Thursday could begin a strike against CPKC and each railroad could begin a lockout of workers. The Teamsters did not issue a required strike notice to CN, but a lockout would still shut its network down.
Railroad customers and Canadian authorities are increasingly frustrated by the lack of agreement on new labor contracts. Teamsters members have been working under the terms of contracts that expired in December 2023.
Canadian prime minister Justin Trudeau today urged the railroads and union to resolve the situation and avert a strike.
"It is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution," Trudeau said. "Millions of Canadians, of workers, of farmers, of businesses, right across the country are counting on both sides to do the work and get to a resolution."
Canadian minister of labour Steven MacKinnon yesterday said he met with Ontario's labour minister and would be meeting with each railroad and Teamsters officials in Montreal and Calgary "to deliver our shared message: Get a deal at the table. Workers, farmers, businesses and all Canadians are counting on it."
Union members have voted twice to authorize a strike, and each railroad has indicated it will lock out union members at the same time. The latest indication is the strike could happen as early as Thursday 22 August.
"CPKC remains focused on and committed to arriving at a negotiated outcome that is in the best interests of all our railroaders and their families," CPKC said today. "We are firmly committed to staying at the bargaining table to reach renewed agreements."
The Teamsters and CN did not respond to requests for comment.
Last week, the railroads initiated embargoes on shipments of toxic inhalation hazards (TIH) and poisonous inhalation hazards (PIH) materials. Those products include chlorine, ammonia, ethylene and phosgene, as well as rail security-sensitive materials such as explosives. Each carrier has now stopped loading trains in Canada and are focused on delivering existing shipments.
Railroads also have stopped shipping trains across the US and Canada border, suspending the movement of multiple products.
US rail regulators are actively monitoring the situation, concerned about how a rail labor strike in Canada would affect the US rail network and supply chain. The US Surface Transportation Board said Wednesday it is monitoring the implementation and effects of those embargoes on the network.
A number of US railroads last week either implemented their own embargoes or said they will comply with the Canadian embargoes.
Western US coal exports are not expected to have much of a disruption if there is a strike since US carrier BNSF has rail lines going directly to Westshore Terminals near Vancouver. But BNSF will not be able to interchange railcars with CN and CPKC in Canada.
Crude markets are also not expected to see significant disruption from a strike in the short term because of pending maintenance at upstream oil sands facilities and spare pipeline capacity.
Prices for Canadian propane and butane — which rely heavily on rail to move product from an oversupplied market to the US — fell Wednesday ahead of the strike.
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UK HRC quota recommendation reflects Tata wishes
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Crew removed from tanker adrift in Red Sea
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Taiwan’s imported scrap prices hit 21-month low
Taiwan’s imported scrap prices hit 21-month low
Singapore, 22 August (Argus) — Taiwan's imported containerised scrap prices fell to a 21-month low on 21 August, driven by sluggish domestic steel demand and a surge in cheaper billet offers from China. The daily containerised HMS 1/2 80:20 cfr Taiwan imported scrap price fell by 4pc on the day to $325/t on 21 August. The price, which has been declining steadily since the second quarter of 2024, was down by 5.8pc from $345/t on 1 August, Argus data show. The price was last lower in November 2022 at $323/t, the data show. Taiwan's imported scrap market has been under pressure since the start of April owing to a seasonal slowdown, with steel mills entering the energy conservation period, which typically lasts from May through September or October, depending on local authority regulations. During this period, electricity prices are relatively raised, with industrial users facing hikes of up to 15-25pc, depending on their consumption levels. To manage the rising costs, many steel mills reduce their shift work, cut production during peak energy demand, or shift operations to off-peak hours, leading to a drop in steel output. Trade sources estimate that the lower output could be in the range of 10-30pc island-wide. But prices failed to rise despite these operational adjustments, as steel demand was affected by adverse weather conditions disrupting construction activities, particularly in July. Market sources told Argus that prominent steelmakers have sought to lower local rebar prices to entice buyers' interest, but downstream steel buyers remain passive and convinced of even lower prices in the near term. The drop in scrap prices was also exacerbated by an influx of cheap billet offers from China, as well as other regions like Russia, South Korea, Indonesia, and Japan. This weighed heavily on scrap procurement efforts, benefitting steel re-rollers on the island. Market sources told Argus that the price of vanadium-added billets, which stood at approximately $515-525/t over May-June, fell to around $475-485/t by mid-August. They added that factoring in a $180-200/t operating cost to manufacture billet from scrap, scrap buyers and mills estimate scrap imports should be below $300/t to remain competitive. But some steel mills remain cautiously optimistic despite such challenges and pointed to some supportive factors that prevented scrap prices from hitting rock bottom. "The global economy is steadily recovering … Taiwan's car sales are steady, and the demand for factories, offices, and residential construction is rising, leading to an increase in the demand for steel related to cars, home appliances, and constructions," Taiwan's largest state-owned steel manufacturer noted in a preliminary report released in late July. Scrap suppliers to Taiwan also maintain a positive outlook, citing sustained demand for housing despite the government's cooling measures, such as lowering the loan-to-value ratio for second-home purchases from 70pc to 60pc. A scrap buyer said that interest rates for housing have stayed relatively low, making financing for real estate more accessible. But there are concerns that potential rate hikes could slow the market, especially for buyers heavily reliant on mortgages. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore's SRC partially shuts refinery for turnaround
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