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US inflation gains, core prices ease in December

  • : Metals, Natural gas
  • 25/01/15

Headline inflation quickened to an annualized 2.9pc in December from a year earlier but core inflation slowed for the first time since August.

The acceleration in the consumer price index (CPI) last month compared with 2.7pc in November, according to the Labor Department. Analysts surveyed by Trading Economics had forecast gains of 2.9pc.

Core inflation, which excludes volatile food and energy, slowed to an annual 3.2pc from 3.3pc the prior month. It came in under analysts' forecasts of 3.3pc.

Traders raised the probability the Federal Reserve will cut its target rate at the June meeting to about 66pc odds from about 58pc Tuesday, according to CME's FedWatch tool. The Fed in December penciled in two likely quarter-point cuts this year but strong job growth and signs of inflation reigniting have been pushing any likely move back later into the year.

The energy index contracted by an annual 0.5pc in December, compared with a 3.2pc decline in November. The gasoline index fell by 3.4pc last month compared with an 8.1pc decline the prior month. Energy services rose by 3.3pc following a 2.8pc gain in November.

Services less energy services, considered a core services measure, rose by an annual 4.4pc in December after a 4.6pc gain the prior month.

Shelter costs rose by an annual 4.6pc following an annual 4.7pc gain the month prior. Food rose by 2.5pc after a 2.7pc gain.

Transportation services rose by an annual 7.3pc in December.

For the month, the CPI rose by 0.4pc following a 0.3pc gain in November that followed four months of 0.2pc gains. Energy rose by 2.6pc in December from the prior month, accounting for 40pc of the monthly headline gain, after rising by 0.2pc in November. Core inflation slowed to a monthly 0.2pc gain after four months of 0.3pc gains.


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25/04/03

US battery costs face sharp rise on tariffs

US battery costs face sharp rise on tariffs

London, 3 April (Argus) — Battery cells imported into the US market face a sharp cost increase following the imposition of US president Donald Trump's new tariff regime. The US last year imported $23.8bn worth of battery cells, according to trade data, mostly from China, Japan and South Korea, all of which have been hit with "reciprocal" tariffs after Trump's executive order was signed on 2 April. China, by far the largest supplier of battery cells to the US market, is now subject to an effective 54pc tariffs, with the extra 34pc duty on top of 20pc blanket duties introduced by the administration of former US president Joe Biden. Battery cell imports to the US from China last year amounted to $16.45bn, 70pc of the total, up from just $2bn in 2020. The new tariffs would add $8bn to this cost for US carmakers and battery pack producers. Japan and South Korea, long-standing US allies and partners in battery cell production, face tariff rates of 24pc and 25pc, respectively. The US last year imported $1.7bn worth of battery cells from Japan and $1.3bn from South Korea. Despite the tariffs, there is potential that Japan and South Korea could eat into China's share of US imports, because of the gulf between their respective tariff rates and being the world's only real alternative producers at this point. A longer-term outcome could be that the US domesticates some of this battery cell production, a trend that was already under way, thanks to Biden's Inflation Reduction Act, which allocated federal funding to battery giga-factories and other battery-related projects throughout the US. But building battery cells is not simple. The US will need access to raw materials, some of which are heavily affected by the new tariffs. Cell-making technology, controlled by the three Asian countries, could be included in any retaliatory measures. "The Trump administration's 'Liberation Day' announcement on tariffs are the biggest trade shock in history, representing a historic shift away from the long-term trend towards free trade," chief economist at investment bank Macquarie Ric Deverell said. "The tariff increase far exceeds earlier expectations, highlighting the strong 're-industrialisation' ideology of the Trump administration." Battery materials impact mixed The impact on key materials for the battery supply chain is mixed, with some metals and pre-cursor materials exempted from the new measures, while some key materials are included. Lithium carbonate, lithium hydroxide, cobalt sulphate, cobalt metal, manganese dioxide, natural graphite powder and flakes all are exempt from new additional tariffs. Key materials that are not exempt include nickel sulphate, manganese sulphate, phosphoric acid, iron phosphate and synthetic graphite, all of which will be included in the tariff regimes implemented on individual countries. The US has no nickel sulphate production and imports most of its material from Belgium and Australia, which exported 1,872t and 1,060t to the US last year, respectively. Tariffs on Belgium will fall under the EU, which will be applied at 20pc, while Australia is subject to a tariff of 10pc. Indonesia, the world's largest nickel producer, is subject to a tariff of 32pc, although so far it has not supplied material to the US. Total US imports of nickel sulphate last year reached 3,738t, up from just 1,125t in 2020. With regard to synthetic graphite, another essential item for battery cell production, the US imported 115,778t in 2024, up substantially from 30,109t in 2020. Most of this came from China, at 74pc of the import market. This material now will be subject to 54pc tariffs, significantly increasing this cost for US battery cell producers. By Thomas Kavanagh and Chris Welch US lithium-ion battery imports by country $bn Feedstock materials exempt from 2 Apr tariffs t US manufacturing investments by stage of supply chain $bn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK steel service centre Malcolm Clarke to close


25/04/03
25/04/03

UK steel service centre Malcolm Clarke to close

London, 3 April (Argus) — Manchester-based steel service centre Malcolm Clarke will close by summer this year, the company said in a letter to customers and suppliers. The company said any existing and new orders will be fulfilled in full and on time, ahead of its target closure date of June 2025. The closure may be slightly later than this date after its "orderly winding down", the company said. Suppliers will be paid before the closure, it added. Malcolm Clarke in its financial results to June 2024, published on 2 April, announced that it would cease trading, so its accounts had been prepared "on a basis other than going concern". "The business environment in which we operate has become increasingly unstable, with unpredictable shifts in market and regulation making it very challenging for small- to medium-sized participants in the day-to-day spot market," the company told Argus . "Despite our best efforts to adapt and evolve, we do not envisage a short- to medium-term future where the situation is likely to improve significantly," it added, suggesting changes to the market were structural and permanent. The business, which was incorporated in September 1970, has two heavy decoiling lines and also sells reversing mill plate. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU steps up steel import monitoring after US measures


25/04/03
25/04/03

EU steps up steel import monitoring after US measures

Brussels, 3 April (Argus) — The EU has immediately increased its surveillance of steel imports in response to additional tariffs in the US, and global overcapacity. "We want to prevent that the steel that hits [the US] tariff wall doesn't hit us here in Europe," a senior EU official said. "Under the WTO rules, the safeguard agreement, we can close our markets due to an unexpected and sudden influx of imports and where a quick reaction is needed". "We have different tools, safeguards is one of them. How exactly we will be using those tools to deal with this trade diversionist effect, that depends on what happens, that depends on the analysis," he added. Global excess steel capacity is forecast to increase to more than 720mn t by 2027, from 602mn t last year, according to the OECD — this is over five times EU steel production. Retaliatory tariffs in the US on all trade partners risk a trade diversion that could further dampen steel demand downstream as well as upstream. Finished goods diversion a challenge European service centres, distributors and processors have already struggled with an increase in imports of components and finished goods, which has undermined demand from their own customers. European steel, tube and metal distributors association Eurometal has recently been lobbying for downstream import protection. Senior figures from the association were in Brussels today, discussing the issue. "We are spreading the message to the European Commission that we need to protect the steel consumption in Europe, not only production," Tata Steel Layde managing director and former Eurometal president Fernando Espada said on LinkedIn from Brussels. EU trade commissioner Maros Sefcovic will speak on 4 April with US secretary of commerce Howard Lutnick. Officials added that the EU is a partner in finding solutions to problems from an ineffective rules-based system or "global overcapacity that comes from a large non-market economy". By Dafydd ab Iago and Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

South Korea’s GS Energy seeks term LNG from 2028


25/04/03
25/04/03

South Korea’s GS Energy seeks term LNG from 2028

Singapore, 3 April (Argus) — South Korean private-sector firm GS Energy's subsidiary GS Energy Trading Singapore is seeking LNG deliveries starting from 1 January 2028, over a 5-15 year period. The first round of offers will be due on 25 April and the second to close on 1 August later this year. The firm has requested volumes of up to 0.81mn t/yr in 2028 and up to 0.97mn t/yr from 2029 onwards. This is equivalent to around 13-14 cargoes/yr in 2028 and about 16-17 cargoes/yr from 2029 onwards, assuming an average LNG cargo size of 60,000t. The cargoes will be delivered to the country's 10.8mn t/yr Boryeong terminal, which is owned by power producers SK E&S and GS Energy. The firm has also specified for offers to be linked to Brent or a hybrid of Brent and Henry Hub. South Korean utility Korea South-East Power in June 2024 also signed an agreement with TotalEnergies for a five-year term delivery of up to 500,000 t/yr of LNG to South Korea from 2027. Meanwhile, state-owned gas incumbent Kogas is expected to operate with a smaller pool of long-term LNG supplies from 2025, with the government granting it more flexibility in its procurement strategy. Long-term contracted supply volumes may typically be priced at a higher premium, and could be deemed as a small price for buyers to secure supply security, traders said. By Naomi Ong Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil futures, stock markets fall on Trump tariffs


25/04/03
25/04/03

Oil futures, stock markets fall on Trump tariffs

Singapore, 3 April (Argus) — US president Donald Trump's announcement of sweeping new tariffs on all US imports has sparked an immediate sell-off in oil futures and stock markets. Crude oil futures fell by almost 3.5pc in Asian trading and some stock markets in the region fell by a similar amount, after Trump unveiled the new import tariffs on 2 April. All foreign imports into the US will be subject to a minimum 10pc tax, with levels as high as 34pc for China and 20pc for the EU, Trump said. But energy and some mineral products have been excluded from the new tariffs. Tariffs on Japan and South Korea, both major trading partners and long-standing US allies in Asia, have been set at 24pc and 25pc respectively. Indonesia, Vietnam, Taiwan and Thailand also face tariffs of more than 30pc. Tariffs on imports from China will be subject to a 54pc rate, after taking into account the 20pc tariffs imposed by Trump over the last two months. Some imports from China that are subject to pre-existing tariffs will face an even higher effective rate. The blanket 10pc tariffs will take effect on 5 April. Any additional country-specific rates will come into force on 9 April. Oil futures fell despite the exemption for energy products. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. The prospect that the US tariffs could disrupt global trade and hit export-focused economies in Asia sent stock markets in Tokyo, Hong Kong and South Korea down by 2-3pc or more. US stock futures also fell sharply. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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