In this week's Market Movers Americas, presented by Hope Raymond:
• Natural gas market continues seeking floor
• FERC to vote on Rio Grande LNG
• Metals Q1 earnings cycle begins
• US container market eyes potential midmonth rate increases
• Texas grid operator mulls scarcity pricing changes
This week, US natural gas prices are still seeking a floor, with the NYMEX prompt month testing sub-$2/MMBtu lows despite storage recently posting its first net injection for the year. Record-high LNG feedgas strength is lending price support, but spring maintenance at LNG terminals is set to reduce feedgas demand.
The US Federal Energy Regulatory Commission is scheduled to vote April 20 on whether to reissue an approval for NextDecade's proposed Rio Grande LNG export terminal in Texas. Also in Texas, the LNG market is now looking toward Freeport LNG resuming full operations in October, sooner than the original estimate of the year-end.
The US metals sector begins the first-quarter earnings release cycle this week, and market observers are looking to learn whether domestic prices have hit a ceiling after four months of increases. Producer Alcoa is expected to discuss the global impact of the recent US tariff hike on Russian aluminum. In container markets, a potential rate hike for the Asia-US trade lane is on the horizon in the wake of a recent oversupply environment. This comes shortly before most Asia-US contract renewals are concluded, and is seen as a last effort for carriers to raise spot rates before annual contract pricing is set.
On Tuesday, the Electric Reliability Council of Texas Board of Directors may approve scarcity pricing changes estimated to bring about $500 million more into the market as a "bridge mechanism" until long-term market reforms can be implemented.
I'm Hope Raymond. Thanks for kicking off your Monday with S&P Global Commodity Insights.