Energy and commodities highlights: US steel and aluminum tariffs, Middle East oil and electric power

Tariffs and trade deals are sticking to the top of the commodities agenda, after the US reached an agreement to remove Section 232 tariffs on steel and aluminum imports from Canada and Mexico .

The deal, announced on May 17, removes US import tariffs of 25% on steel and 10% on aluminum, without imposing quotas to cap imports.

Mexican steel producers welcomed the tariff removal, but remain in a challenging position due to pressure from US buyers to reduce prices, an increase in raw material costs, and flagging domestic demand.

Back in the US, steel industry stakeholders gave a measured response, calling on the Trump administration to remain vigilant and prevent excessive imports.

Also on May 17, the White House said the US would delay imposing tariffs on automobile and auto parts imports for six months while it negotiates trade deals with Japan and the EU.

INFOGRAPHIC: MIDDLE EAST OIL AND ELECTRIC POWER

The expected seasonal spike in power demand over the summer could cause problems for OPEC linchpin Saudi Arabia. Despite efforts to

, the kingdom is still heavily reliant on oil-fired generation. It also faces competing pressures to keep a lid on oil prices, and to rein in production to reduce global inventories. S&P Global Platts looks at the factors influencing demand and production in Saudi Arabia and other OPEC neighbors.

Click for full-size infographic

WATCH: IMO 2020 AND SHIPPING

With the IMO 2020 sulfur cap only months away, shipowners may struggle to convince their customers to pick up higher bunker fuel costs. S&P Global Platts managing editor, freight markets, Alex Younevitch looks at the issues facing the shipping industry and its options for dealing with the new rules. METALS

Analysts raise forecasts for 2019 iron ore prices after surge in 62% Fe fines

Analysts have lifted their forecasts for iron ore prices after a recent surge took the price of 62% Fe fines above $100/mt CFR for the first time in five years due largely to the supply shortfall from Brazil.

ELECTRICITY

Power industry observers differ about competitive advantages of solar, wind

Power industry observers offered different views on new research concluding that solar power poses a bigger threat to wind generation development than other types of generation.

AGRICULTURE

Shorter planting window, unfavorable weather pose challenges for US corn

An unusually slow pace of corn plantings has raised concerns that US acreage and crop yields could fall to an extent that will squeeze supplies from the world's biggest producer and put upward pressure on global prices.

THE LAST WORD

"I think there is a lot of oil that is leaving the shores of Iran or the borders of Iran that is not accounted as Iranian oil."

– Saudi energy minister Khalid al-Falih justified his view that the world is awash with crude. Falih was speaking to reporters in Jeddah, as an OPEC/non-OPEC monitoring committee met to discuss output on May 19.