In this week’s Market Movers Americas, presented by Valarie Jackson:
• UAW strike clouds outlook for steel, aluminum demand
• Oil industry gathers for World Petroleum Congress
• Climate Week takes place in New York City
• Fall weather pressures spot gas markets
This week, US steel and aluminum markets continue to monitor negotiations between the United Auto Workers and the Big Three automakers, as the union began targeted strikes at all three companies Sept. 15. So far, the UAW strike has affected three auto plants, one each at Ford, GM and Stellantis. S&P Global Mobility estimates the combined impact could be about 3,200 units a day, which could translate to a hit of 3,200 st/day of steel demand.
Oil industry leaders will discuss how to meet growing demand while staying on the path to net-zero carbon emissions as they gather in Calgary, Canada, for the 24th World Petroleum Congress. The US economic outlook and concerns about inflation remain key uncertainties in global oil markets, which face a widening supply gap after output cuts by Saudi Arabia and Russia.
Also in industry gatherings, it’s Climate Week in New York City! Dozens of events will be held across the city on topics including financing a net-zero future, decarbonizing US steel production, and electrifying transportation. S&P Global Sustainable1 will hold an Advancing the Transition summit Sept. 20, with topics that include the market dynamics and financial risks of energy transition.
Finally, the arrival of cooler weather across the US will push gas-fired power demand to its lowest level since early June. As the US gas market enters shoulder season, prices at upstream hubs in Appalachia, the Haynesville, and the Permian Basin could come under pressure. Prices at Appalachia’s benchmark Eastern Gas South location already fell sharply at the end of last week.
I’m Valarie Jackson. Thanks for kicking off your Monday with S&P Global Commodity Insights.