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Energy | Coal | Natural Gas | Oil | Energy Transition

Market Movers Americas, Nov. 8-12: Gas pipeline expansion nears completion; shipping rates, metals tariff disputes in focus

Energy | Electric Power | Natural Gas

US natural gas, power prices face bullish outlooks into winter heating season

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Saudi Aramco raises Jan OSP crude prices to Asia, US

Metals | Non-Ferrous | Steel

Steel, aluminum demand to see boost on passage of long-awaited US infrastructure package

Watch: Market Movers Americas, Nov. 8-12: Gas pipeline expansion nears completion; shipping rates, metals tariff disputes in focus

In this week's Market Movers with Morgan Snook:

* A Northeast gas pipeline expansion will come online before winter (00:21)

* Container rates could ease due to lower China export volumes (01:09)

* The US negotiates disputes around metals tariffs (01:58)

* Northwest power demand rises (02:40)

* Coal suppliers focus on restocking domestically (03:33)

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In this week's Market Movers: A Northeast gas pipeline expansion will come online before winter, container rates could ease due to lower China export volumes, the US negotiates disputes around metals tariffs, Northwest power demand rises, and coal suppliers focus on restocking domestically.

Transco's Leidy South pipeline expansion project in northeastern Pennsylvania will be fully operational ahead of winter demand, according to the CEO of midstream operator Williams. The expansion is expected to add about 580 million cubic feet per day of capacity from the Leidy Hub to markets along the Atlantic seaboard like New York and New Jersey. The pipeline's smooth permitting success as a brownfield expansion stands in stark contrast to greenfield projects facing permitting obstacles and legal challenges from activists. With Leidy's success in mind, Transco has another 1.5 billion cubic feet per day in expansion projects along Transco and Gulfstream in the works.

Container shipping rates from North Asia to North America show signs of easing this week, with reports that China's power shortages are impacting factory output. With fewer export cargoes arriving at the ports on schedule, space is opening on ships that were previously booked solid for weeks at rates so high they were contributing to higher US inflation rates. But lower export volumes could be counterbalanced by a shortage of containers in Asia as shipping lines struggle to return the equipment from inland areas of North America following the rush of holiday restocking. This brings us to our social media question of the week: How far into 2022 will shipping rates stay elevated? Tweet us your thoughts using the hashtag #PlattsMM.

In metals, the US is continuing negotiations on a country-by-country basis to resolve disputes related to the Trump-era Section 232 tariffs on steel and aluminum after striking a deal with the EU on October 30. On the heels of the agreement with the EU, which will replace the tariffs with tariff-rate quotas, talks are already underway with the UK and Japan. The Japan Iron and Steel Federation said a US trade agreement with Japan is critical following the US-EU deal as there are concerns it would put Japan behind the EU in terms of export competitiveness to the US.

The National Weather Service forecasts heavy precipitation in the Northwest this week that could boost natural gas and power heating demand. California Independent System Operator forecasts peak electricity demand to average 28.4 gigawatts this week through Thursday, up from less than 28.1 gigawatts for Nov. 1-4. In the longer term, California's renewable electricity generation is set to increase as 100% of electric retail sales must be renewable and zero-carbon by 2045. California's solar power generation increased year-on-year last month, with data from the state's ISO showing October's total average solar photovoltaic generation up 12.6% from 2020.

Higher coal export prices have cooled some demand as US suppliers are focused on domestic stockpile replenishment. US power sector coal inventories fell to over a 20-year low of 84.31 million short tons at the end of August, the most recent Energy Information Administration data shows. Rather than encouraging more US coal supply, high delivered coal prices are limiting market movements, particularly to Latin America, according to S&P Global Platts Analytics.

The Platts Atlas of Energy Transition is your map to the sustainable commodity markets of the future. You can explore the Atlas by visiting the address displayed on your screen. Thanks for kicking off your Monday with us and have a great week ahead.