In this week's Market Movers Americas, presented by Phillipe Craig:
• Historic heat wave set to exit California, move north
• Winds in the West spur fire prevention power shutoffs
• Container freight market easing further amid peak season
• Decision on 2023 import quota for Brazilian primary aluminum in focus
This week, a heat wave in California and the US Southwest that set record-high temperatures and pushed spot power and gas prices to year-to-date highs is forecast to ease, clearing the way for lower spot prices.
The National Weather Service forecast that the California heat wave could move north into the Pacific Northwest early this week, just as pipeline maintenance is set to reduce gas imports from West Canada through Kingsgate on Monday.
The wind is also picking up in the West, bringing a new set of challenges to the power grid. Two utilities in Oregon are starting public safety power shutoffs to prevent wildfires, and the weather service has issued a red flag fire risk warning for much of Oregon and Washington.
The Americas container freight market is set to continue its downtrend as demand for ex-Asian goods continues to slump. Despite being in the middle of the August-October peak season, the trans-Pacific eastbound market is primed for erosion as cargo owners are expected to further reduce orders.
The current import premiums for primary aluminum in Brazil could be bottoming out and see a change direction soon. The power crisis in Europe has been leading to several curtailments in the region and recent power cuts in China could also lead to increased Chinese imports, which could tighten the international market more.
I'm Phillipe Craig. Thanks for kicking off your Monday with S&P Global Commodity Insights.