In this week's Market Movers Americas, presented by Wendy Dulaney:
• Texas grid operator to release reliability assessments
• US lithium companies comment on Chile nationalization plans
• Commerce to issue final determination on circumventing tariffs
• Short benzene markets look to Korea for possible supply
This week, the Electric Reliability Council of Texas releases two reports that could impact Texas summer power prices. ERCOT is expected to release its biennial Capacity, Demand and Reserves Report as well as its summer Seasonal Assessment of Resource Adequacy. So far, summer forward prices are well below the day-ahead on-peak price averages from last year, likely because of relatively mild weather forecasts and sharply lower natural gas forwards.
Two US-based lithium companies, Albemarle and Livent, are expected to comment during earnings calls this week on Chile's move to nationalize its lithium industry. Chile is one of the world's top lithium producers.
The US Department of Commerce is expected to issue its final determination regarding whether Southeast Asian companies circumvented anti-dumping duties imposed on Chinese solar panels. An investigation was opened in March 2022, creating uncertainty amid existing supply chain disruptions.
And in petrochemicals, US benzene markets are looking to Korea, where high inventories and a closed arbitrage to China may motivate traders to fix cargoes to the US despite the arbitrage currently being closed on paper. The US is structurally short on benzene, and demand from gasoline blenders this spring has pushed prices higher, turning production markets negative for downstream products like styrene.
I'm Wendy Dulaney. Thanks for kicking off your Monday with S&P Global Commodity Insights.