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Sources: China waives tariffs against US ethane imports
Two sources familiar with the matter confirmed on Tuesday that China had waived the 125% duty on imports of ethane from the United States, imposed earlier in the month. Ethane is one of a number of products which have been exempted. This move will relieve pressure on Chinese companies that import U.S. Ethane for petrochemical manufacturing as well as providing an outlet for natural gas liquid (a by-product of U.S. Shale Gas production). Sources said that the tariff on ethane was waived recently. One source said that the waiver had not been announced publicly. Due to the sensitive nature of the issue, they declined to give their names. After office hours, it was impossible to reach the China Customs and China Ministry of Commerce. Last week, it was reported that certain pharmaceuticals, aerospace and semiconductor products were also affected. You can also get a grant Tariff exemptions are being offered by Beijing to try and reduce the economic impact of the trade war between the United States and China. China raised its duties on U.S. imports, including ethane to 125% in early this month. It was a response to President Donald Trump's decision that the No. 2 economy of the world should be singled out for higher duties. 2 economy for higher duties. According to the U.S. Energy Information Administration, China purchases nearly half of U.S. exports of ethane, which reached a record 492,000 barrels a day in 2024. EIA predicts that U.S. exports of ethane will increase to 530,000 barrels per day in 2025, and 630,000 in 2026. Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group are among the Chinese ethane importers. The U.S. exporters include Enterprise Products Partners, Energy Transfer, and Energy Transfer.
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Outage traps Portuguese and Spaniards, who are unable to pay their bills and feel powerless
The massive power outage on Monday reminded the Portuguese and Spaniards of their dependence on electricity in modern life and how they can be rendered helpless in an instant. Some people were trapped in lifts during the eight-hour power outage that began around midday. Others had to descend multiple flights of stairs with their phones as light. Metros and trains came to a complete halt. People were either trapped in carriages for hours by electric doors, or forced out to walk, jump over the tracks and pick their way across. Ana Cordero, a Puerto Rican tourist, was stranded for three hours on a train heading to Barcelona before she was evacuated. She could not access any information other than a message over the train's tannoy stating that there was a blackout. She said that the staff opened the toilets to people, but the battery of the train died. "It was so stupid, because everything was electronic." "Even to wash your hand, you had press a button but it didn't work," Cordero stated. As people tried to contact loved ones or schools for their children, phone and internet signals dropped and then disappeared completely. Many people who were desperate to get news turned to their car radios or analogue ones if they had them. They could not receive the news on their mobile phones or websites. Traffic lights were out of order and people had difficulty navigating without the aid of mapping apps. Many garages were closed off by electric gates and doors, so not everyone was able to get their cars. No Cash? No Cash? Taxis were unavailable, and those who tried to use them were turned away for not having cash. They were also forced to barter with the driver to pay later. Many supermarkets were unable to accept payments and closed, while others quickly ran out basic supplies such as milk, bread, and water. It's a good reminder of how dependent we are on technology and electricity, even just the basic connections. They're so important to our daily lives," said Albert Fernandez (26), an engineer who was in a queue outside a Barcelona electronic store trying to access its wifi. Locals and tourists found out that electronic locks on the doors of their accommodations prevented them from getting in. Visitors were checked in by torchlight at a guesthouse located in Ronda, south Spain. Owners of bars, restaurants and food stores were concerned about the costs of perishable products that had been left in refrigerators and freezers. Some opened their doors to customers and only accepted cash, while others shut down. People who depend on home medical devices, such as oxygen concentrators that have finite backup power sources, and people using mobility aids such as wheelchairs were among the worst affected. Lola Diaz Fernandez (58) was stuck in the Valencia train station after her train to Madrid was delayed. She was allowed to spend the night in the station, along with others who had mobility issues. She said, "I have problems with inflammation of my legs when I sit for long periods." "Thank goodness, I was able to stay here because there were adapted toilets. It'll probably take me a few days to recover. Andrei Khalip, a deputy bureau chief in Lisbon who uses a wheel chair, was left without electricity for 11 hours. He was trapped in his apartment because the lift had broken down. He said: "The worst part was that I couldn't work because of the fact that my phone signal would not come through. The feeling of dependence on electricity and communication networks and realising how much we depend on them made me feel helpless." Enjoy a Day Off Unexpected afternoons off from work or study allowed many Spaniards to enjoy the best of what the country is known for. This included sunlit squares and drinks on terraces. Games were also played and people got together with their neighbours at spontaneous street parties. Friends shared photos on social media when power was restored. They returned to playing board games such as Scrabble, without being distracted by mobile phones. And they ate family dinners on gas stoves, with candlelight. Some people posted that the blackout demonstrated the need to stockpile emergency supplies, which the European Union had said that citizens should do in the event of natural disasters or cyber attacks. As the lights twinkled across Madrid, residents screamed and clapped in relief. Reporting by Iberia Bureau, writing by Aislinn laing; editing Alexandra Hudson
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Sources say that China has waived tariffs on US ethane imported from the US
Two sources familiar with the matter confirmed on Tuesday that China had waived its 125% tariff imposed on the United States' ethane imports earlier this month. This move will relieve pressure on Chinese companies that import U.S. Ethane for petrochemical manufacturing as well as providing an outlet for natural gas liquid (a byproduct from U.S. Shale Gas production). Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group are the main ethane importers from China. The key U.S. ethanol exporters include Enterprise Products Partners, and Energy Transfer. According to the U.S. Energy Information Administration, China purchases nearly half of U.S. exports of ethane. China raised its duties on U.S. imports, including ethane to 125% in early February, as a response to President Donald Trump's decision that the No. 2 economy of the world would be subject to higher tariffs. Sources said that the tariff on ethane has been reduced in recent days. Beijing has granted exemptions from tariffs for some products, including microchips, aircraft engines, and pharmaceuticals. The city is now asking companies to identify the critical goods that they require. This was reported by Friday. Reporting by Siyi Liu and Trixie Yap; Editing by Susan Fenton
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Sources: Commonwealth LNG and Malaysia's Petronas in talks to supply term-based LNG
According to four sources familiar with the matter, the Malaysian state-owned company Petroliam Nasional (or Petronas) is in discussions with Commonwealth LNG about buying liquefied gas from its Cameron, Louisiana facility. Petronas has been in discussions with Commonwealth LNG to purchase at least 1 million metric tonnes per annum of LNG. Two of the four sources declined to identify themselves as they weren't authorised to talk to the media. One source said that the talks are advanced for at least one mtpa. Several Asian nations plan to increase the contractual purchases of U.S. LNG in order to reduce the imbalanced trade with the United States, and avoid high reciprocal tariffs. Petronas previously stated that it would be expanding its global LNG pipeline to meet the growing demand and that some of its U.S. contracts may be sold on the spot market in Europe or Asia. Commonwealth LNG and Petronas have not responded to requests for comments. Commonwealth LNG is building a 9.5mtpa LNG facility in Cameron, Louisiana. The U.S. Department of Energy granted it an export license in February after waiting almost two years under the Biden Administration. Commonwealth has reported an increase in the interest of prospective buyers after obtaining its export license. About 8 mtpa is currently under contract with Woodside Energy or being considered, including 2.5 mtpa and 2 mtpa from Private equity firm Kimmeridge which has acquired 90% of Commonwealth LNG. Petronas signed 20-year contracts for LNG at Venture Global's Plaquemines plant and with Cheniere Energy. Petronas also signed in December a 15-year agreement with ADNOC to supply 1 mtpa LNG. Deliveries are expected to begin as early as 2028. (Reporting from London by Marwa Rashed, Curtis Williams and Emily Chow; editing by David Evans).
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Maersk maintains all trans-Pacific voyages despite trade and tariff uncertainty
Maersk announced on Tuesday that it has maintained all of its trans-Pacific sailings, even though some vessels have been reduced, despite the uncertainty created by U.S. tariffs on imports and the U.S.-China trade war. Hapag-Lloyd, the German container carrier, said last week that 30% of its customers have cancelled shipments from China to the United States due to the trade war between the two world's largest economies. Maersk's customers who ship from China to the United States have different ways of dealing with the uncertainty. "Some choose to continue with their plans, while others decide to ship from or to other markets. A third group of customers will store shipments at the origin in anticipation for a resolution in the future," the company stated in a press release. The company said that it would continue to evaluate the situation, and adjust its services in accordance with the demand between China and the U.S. This includes continuing the practice of substituting larger vessels with smaller vessels. Trump's policy currently includes tariffs of 10 percent on most goods imported from other countries, and a 145% duty on products from China. China and other countries have retaliated with tariffs against U.S. products. Beijing has exempted some U.S. imported goods from the 125% tariffs. (Reporting and editing by Jacob GronholtPedersen.)
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Jordan purchases approximately 60,000 T of wheat at tender, traders claim
In an international auction held on Tuesday, Jordan's state grain buyer bought about 60,000 metric tonnes of hard milling whey from optional origins. They said that it was estimated to have been purchased from Al Dahra for $259.99 per ton, cost and freight included. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. The following trading companies also participated in the tender on Tuesday, according to traders: CHS $263.15; Cargill $270.29; Viterra $279; Ameropa 268.45, and Buildcom 261.88 cents per metric ton. Jordan has issued wheat tenders every week this year, but traders say that a tender next week is unlikely. Jordan bought 60,000 tons of wheat at $261.70 per ton for shipment in July's second half. (Reporting and editing by Kirsten Doovan, Kirsten Hogan)
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Why is Germany asking to split the power market?
ENTSO-E - the European power grid lobby - has demanded that Germany split its 25-year-old single electric market into five zones of price bidding. This is to prevent intra-German prices from leaking out to neighboring countries. As a six-month period of consultation began on Monday, here are some facts and considerations. Why has the topic been brought to the forefront? The European Network Companies' Group argues in its Bidding Zone Review that dividing Germany into zones will increase efficiency and lower management costs both inside and outside Germany. It said that a scenario based on conditions in 2019 showed that a five-zone split could save 339 million euro per year of grid management costs, reduce bottlenecks and allow more renewable energy to be transmitted. In 2024, the German grid handling costs reached 2.8 billion euro ($3.19 billion), which is a barrier to producers and consumers. What entso-e hopes to achieve Some organisations, including northern federal states and Germany's EU allies, such as Sweden which operates a connecting cables, claim that the high renewable generation in Germany’s north distorts energy prices over a wide area. They say that the northern areas will not benefit from local electricity at a lower cost, as everyone pays too high if the national grid is shared. Local zones with realistic pricing would encourage greater participation in battery storage and electric cars. Why Germany is opposed Germany admits that its network expansion has been slow, but it has set clear goals for the construction of north-south highways in order to solve structural problems. The coalition government, southern state and industry, namely, energy, cars, and chemicals, claim that it cannot abandon these systems now and adopt an entirely different system. Export-oriented industries in Germany are suffering from recession. If they were to be burdened by even higher costs elsewhere, they might leave or withdraw their employment. Transmission companies (TSOs) are making clear progress in constructing new lines of transport, under the supervision of the energy regulator. POSSIBLE CONSEQUENCES IF AN ESCALATION OCCURS If the EU Commission led by Ursula von der Leyen (a German) adopted ENTSO-E’s stance, and pitted themselves against Berlin, this row could shake the biggest economy in the EU and lead to anti-EU and right-wing sentiments. If Germany persists in its opposition to reconfiguration, then it may face retaliation, at a moment when it is trying to maintain good relations with EU trading partners. The Commission can decide on an action plan if the member states cannot agree within six months. How the issue could be silently resolved Germany can maintain its price-free zone if they adhere to the long-term EU regulation on its internal energy market that requires 70% of their border interconnection to be ready for tradeable power flows before year's end. The European Energy Exchange, Germany's power exchange, supports the TSOs in their bid to prove that they have made progress towards this goal. Peter Reitz (CEO of EEX) told reporters in a Monday call that there was no reason to disrupt Germany's current status quo.
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South Korea's MFG purchases about 66,000 T of corn, traders claim
In an international auction held on Tuesday, the Major Feedmill Group of South Korea (MFG), a group that owns and operates feed mills in South Korea, purchased approximately 66,000 metric tonnes of animal feed corn, which could have been sourced from either the United States, South America, or South Africa. A consignment of goods was purchased at an estimated cost and freight rate (c&f), plus an extra $1.50 per ton for port unloading. It was thought that the seller would be ADM, a trading house. The shipment was purchased for arrival around the 28th of July. A second consignment up to 70,000 tonnes also sought for the tender's arrival on August 3 was not purchased. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. The consignment was to be shipped between June 24 and July 13 if it came from the U.S. Pacific Northwest Coast, between June 4 and 23 if it came from the U.S. Gulf coast, May 30 to June 18 if coming from South America, or between June 9-28 from South Africa. Only 55,000 tons are required if South African origins is chosen. The traders said that Asian import interest had been sparked by the Chicago Board of Trade Corn futures falling on Monday due to spillover pressure caused by weaker wheat and progress made in U.S. sowing. A group in Taiwan bought 65,000 tons of U.S. origin corn on Tuesday. (Reporting and editing by Kirsten Doovan, with Michael Hogan)
Maguire: Europe's clean energy woes are worsened by a lack of snow cover
The below-average snowfall in continental Europe during the winter of 2018-19 has deprived regional utilities in this region of a vital source of clean energy that can be dispatched this spring. This is on top of an alarming drop in wind power generation in 2025.
According to LSEG the snow-fed hydro production in the Alps has fallen by over a third compared to last year's same dates. This is due to a decrease in winter precipitation.
Ember data shows that the lower hydro supply follows a period of low wind production lasting several months, which forced European utilities (utilities) to increase their fossil fuel generation by 7% compared to last year's levels.
The continued weakness of hydro means that regional utilities will need to increase output from coal and natural gas-fired power stations, which are Europe's main sources of energy. Nuclear reactors can also be sent on demand.
The Peak Has Been Passed
The output of snow-fed hydro assets peaks in the spring and early-summer, when temperatures rise and melt snow to refill reservoirs and boost run-of river turbine system output.
LSEG's seasonal snow-fed hydromodel data suggests that the output of the Alps as a region peaked at the end of March and will continue to decline steadily until the late summer, before recovering during the fall and the winter.
The peak hydro output in the Alps area was around 30% lower than the long-term norm, and nearly 40% less compared to the same period of 2024. This is due to the thin snow cover in key areas during this winter.
The cumulative snow-fed production of Austria's major regions fell by 44% from 2024 to the present.
LSEG data indicates that Switzerland, France, Italy, and the entire Danube Catchment Area are all expected to see output declines of 30 or more percent.
KNOCK OUT IMPACTS
According to Ember, by 2024, Europe will generate around 18% the electricity it needs.
This is compared to 23% for gas-fired power plants, 20% for nuclear plants and 13% each from wind farms and coal plant.
Solar farms produced around 7%, bioenergy plants about 3% and other renewables and fossil plants another 3%.
Europe's utilities have become accustomed to the volatile output of hydro assets and are adept at replacing lost hydro production with higher production from assets other than hydro.
The European power companies are now facing a tight supply of clean energy this year, due to the fact that Europe's wind farms have already recorded a decline of more than 10% in wind electricity production during the first quarter 2025 compared to the same quarter 2024.
Several systems, including France, have a large number of nuclear reactors to ensure that overall electricity flows are clean, even when wind and hydro production is low.
In order to compensate for the loss of wind and hydro, most other European networks have increased fossil fuel generation.
In Europe, the production of electricity from gas fired power plants increased by 26% in the first three month of 2025 compared to the same period in 2024. Coal-fired power generation increased by 15%.
Gas production in Austria increased by 75% between January and March 2024 compared to the same period in 2024, as utilities sought to balance the system during the recent hydro slump.
In Germany, France, and Italy, fossil fuel generation is also up this year compared to last year, partly due to the reduction in hydropower supplies.
SOLAR OFFSET?
Solar farms in Europe are on course to break previous records by 2025. They will also be able offset at least some of the reduced supply from other assets.
Solar farms cannot replace hydro power in full because they can only produce solar energy when the sun shines.
It's possible that utilities who could dispatch bursts during peak demand may have to rely on fossil fuels rather than solar farms in order to replace the lost supply, especially at times when solar output is low.
It is true that the European power grids are adding more battery storage capacity, which allows utilities to store solar energy and then sell it to their customers later.
Batteries can also be used to limit fossil fuel use and the increase in emissions from the power sector.
With wind and hydro power under pressure, Europe's energy firms will continue to rely heavily on fossil fuels, which could result in a rise in fossil-fueled generation by 2024.
These are the opinions of the author who is a market analyst at.
(source: Reuters)