Mexico factory contraction eases in November

: Metals, Petrochemicals
24/12/03

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

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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

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

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

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. 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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.

Liberty units to be repaid in Speciality restructuring

24/11/29

Liberty units to be repaid in Speciality restructuring

London, 29 November (Argus) — GFG Alliance entities Marble Power and Liberty Fe Trade DMCC will be excluded from Liberty Speciality Steel's restructuring plan, meaning they will be repaid, according to documents seen by Argus . GFG Alliance is the overall parent of Liberty Steel and all its subsidiaries. Speciality Steel owes and will pay Marble Power, its power supplier, around £11.5mn. Liberty Fe Trade is owed £1.4mn for the procurement of software licences, and will not have sufficient reserves to cover those licences without being paid. Liberty declined to comment. In total, GFG Alliance entities are owed over £288mn by Speciality Steel, but aside from Marble Power and Liberty Fe Trade, those claims will be released, reflecting a "significant contribution" from the wider parent, according to the restructuring documentation. In the event that Speciality Steel creditors accept its restructuring, enabling the company to keep operating, it will reduce its higher-margin aerospace work "as it is unable to retain quantities produced during the last two years for its largest two customers beyond the first half of 2025", Liberty's business plan states. Two main aerospace customers are supporting the business through upfront payments and premiums for accelerate deliveries, but this arrangement will end by May 2025, after which aerospace work will be significantly reduced. Key customers will provide £27.5mn in cash support to January 2025. As the aerospace work winds down, the company will "hire out the excess capacity to another steel producer", and discussions about this are continuing. Market sources have said Speciality could produce billet for British Steel's rolling operations. Going forward, Speciality will focus on vacuum-induction melting at Stocksbridge for other industries, such as oil and gas, and industrial engineering. Speciality will also source steel — including semi-finished products — externally to "increase deliverability of customer products". The business plan envisages the ebitda margin increasing from minus 188pc in February-March 2025 to 2pc in 2026. The plan assumes steady production through the year, other than seasonally reduced capacity in December and August. This would be a big change from this year, with just 50,000t of steel emerging from the electric arc furnace, which has a capacity closer to 1mn t/yr. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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