In this week’s Market Movers Americas, presented by Catherine Kellogg:
• US, EU deadline for global steel, aluminum arrangement nears
• Texas power market discussions around extreme weather slated
• CARB to host workshop on cap-and-trade regulation
• California shifts to winter gasoline specifications
• USAC export rates weak despite supply tightening
Steel and aluminum market participants are closely monitoring ongoing talks between the US and EU on a potential Global Arrangement on Sustainable Steel and Aluminium. The parties have set a deadline for the end of October to reach a deal following two years of negotiating.
At the Gulf Coast Power Association’s annual fall conference this week in Austin, Texas, ERCOT stakeholders will discuss market performance during summer 2023’s extreme heat. They will also address the market implications of rule changes mandated after February 2021’s deadly winter storm that knocked out power for 4 million ERCOT customers.
The California Air Resources Board is asking interested parties to participate in an Oct. 5 workshop to discuss potential amendments to the cap-and-trade regulation. The regulation is one of the measures adopted by CARB to reduce California’s greenhouse gas emissions and advance the state’s climate goals.
Also in California, CARB’s recent gasoline volatility waiver means the state’s fuel markets are shifting to winter-grade product this week. Gasoline prices could be expected to come down from their relatively high values as they have been above year ago levels since early August.
Finally, container rates for US Atlantic Coast exports headed to North Asia remain bearish despite equipment availability issues stemming from Panama Canal draft restrictions. Container availability has lent some support to the market, but weakening demand for US exports, primarily agricultural products, has prompted ocean carriers to lower rates.
I’m Catherine Kellogg. Thanks for kicking off your Monday with S&P Global Commodity Insights.