In this week’s Market Movers Americas, presented by Mayara Baggio:
• Strong inventories portend weak Q4 in container markets
• Steel market watchful of potential US Steel sale
• Texas heat wave to break Aug. 29
• Hydrogen station fuel providers face price hike
This week, container freight rates on key North Asia-US lanes are on the rise amid a round of successful rate increases. However, US retailers are holding off on large-scale replenishment since existing inventories are overall healthy, so container rates on the trans-Pacific import market into the US may see a weak fourth quarter.
The steel market continues to keep a close watch on US Steel's potential sale following the company's recent announcement about a strategic review process. After announcing an all-cash offer, Esmark said last week it would no longer pursue a bid for the company, leaving Cleveland-Cliffs as the only publicly known suitor.
The Texas power market should get a break from triple-digit high temperatures this week, with forecast highs generally in the upper 90s Fahrenheit for most major metro areas. The change has already been reflected in Intercontinental Exchange ERCOT North Hub on-peak pricing, with next-week delivery trading Friday around $220 per megawatt-hour, down more than $400 from this week’s average.
In California, hydrogen fuel station providers are expected to respond to the news of fuel station operator True Zero hiking its price at the pump to record highs of $36 per kilogram. This is a significant increase in fueling prices for the hydrogen fuel cell vehicle market in the state and could lead to new highs in the Platts monthly California pump price.
I’m Mayara Baggio Bombana. Thanks for kicking off your Monday with S&P Global Commodity Insights.