In this week's Market Movers Americas with Kelsey Hallahan:
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Texas utility regulators to mull new generation laws
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US oil and gas rig counts could rise in Q3
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US finished steel market sentiment weak
Texas power markets may become clearer June 15 as the Public Utility Commission of Texas meets for the first time since Governor Greg Abbott signed two bills into law to incentivize investment in dispatchable generation. One bill would do this through subsidized financing and another through short- and long-term market reforms.
While it has been a bumpy year for the US oil and gas patch, rig counts are predicted to rise in the coming year, but it probably won't be until the third quarter, analysts say.
The number of total rigs dropped for the fifth straight week June 7 amid uncertainty over Chinese demand recovery and OPEC+ production.
But the round of first-quarter results calls that wrapped up in mid-May indicated that producers are likely to stick to their earlier plans of adding rigs in the second half to meet their year-end production targets.
In finished steel, price sentiment continued lower for June as ferrous scrap prices remained under pressure, the most recent S&P Global Commodity Insights US steel market survey showed.
In the survey of US producers, distributors, traders and end-users, 75% expected finished steel prices to fall further throughout the month, particularly in the flat-rolled steel market.
Flat product mills have been lowering offers in order to entice buyers to fill order books as lead times have now moved into July and were last seen in the five- to six-week range for many mills.
I'm Kelsey Hallahan. Thanks for kicking off your Monday with S&P Global Commodity Insights.