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Sources say that China has lifted its fuel export restrictions for July.
China lifted its'refined fuel export restriction for the remainder of July' and allowed a private refiner to resume shipping after a four-month hiatus, according to trade sources on Wednesday. The world’s largest refiner is returning towards normality following disruptions caused by the Iran War. Four sources informed on the issue said that Zhejiang Petrochemical Co., which is majority owned by Rongsheng Petrochemical has been allowed to export fuel after it had stopped exports for over three months. The National Development Reform Commission and China's Ministry for?Commerce did not respond immediately to faxed requests. Rongsheng didn't immediately respond to an?ask for comment. In the last few months, only state-owned companies were allowed to export jet fuel, gasoline and diesel. Two sources said it is unclear whether the lifting of the export restrictions will continue in August. They declined to be named as they were not authorized to speak with the media. Two other sources said that refiners plan to export roughly 3 million metric tonnes of these three 'fuels' this month, including bonded quantities to Hong Kong and Macau. This is similar to the average volume exported last year. The'scheduling' of these cargoes is still in progress and should be completed by the end of this week. Initial reports stated that exports would?reach nearly 2 million tonnes for July.
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Four oil and gas tanks turn back after vessel attacks from the Hormuz Strait
Ship-tracking data showed that at least four oil and gasoline tankers had turned back from trying to transit the Strait of Hormuz. This was due to renewed attacks against vessels in this critical waterway, which raised safety & security concerns. After reports of Iran firing missiles on ships in the waterway and damaging a Qatari LNG tanker, as well as a Saudi crude oil tanker, the maritime authorities raised the threat level for transiting vessels from "moderate" to "severe." Data from Kpler and LSEG showed that the three LNG tankers – Al Ghariya Duhail Al Ruwais – were all heading west towards the Strait of Hormuz, before they changed course late Tuesday to turn away. The three tankers owned by QatarEnergy are empty and headed to Qatar's Ras Laffan Export Facility in order to load cargoes. LSEG data and Kpler data showed that an Indian flagged tanker carrying 2,000,000 barrels of Kuwaiti oil loaded late last weekend made a U turn off the tip of Oman - at the Strait of Hormuz - on Wednesday. Since the conflict started in late February, at least 16 LNG cargoes have been shipped from Ras Laffan terminal and?10 from ADNOC Das Island terminal?in the United Arab Emirates. This is still only a fraction compared to the 7 million metric tonnes on average that are typically exported from both export hubs every month. Vortexa analysts report that a queue of ballast or unloaded vessels waiting to be loaded at Ras Laffan also grew, and reached more than 10 ships in early July. Vortexa said that over 50 ballast vessels controlled by ADNOC and QatarEnergy are stationed in the Middle East Gulf and India, and some have been'switching their Automatic Identification System signals off for more than ten days'. Two crude oil tankers did manage to leave the Strait. The VLCC Tenjun managed by Nippon Yusen KK, carrying 2,000,000 barrels of Qatari 'crude' loaded in late-February, left the Strait of Hormuz on Tuesday. Shipping data showed that the VLCC Pertamina Pride managed by Indonesian state energy company Pertamina also left the Strait on Tuesday with its transponder turned off. The vessel was loaded with 2 million?barrels (or a little more than 200,000 barrels) of Saudi crude in early March. Nippon Yusen refused to comment on Tenjun. Pertamina didn't immediately respond to an inquiry for comment. (Reporting Emily Chow and Florence Tan, with additional reporting from Yuka Obayashi and Fransiska Nanangoy in Jakarta, and Nidhh Verma in New Delhi.)
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Taiwan's migrating Crab population returns thanks to safer road crossings
Bamboo bridges and road?closures helped protect Taiwan's biggest terrestrial crab species when they returned to the sea during breeding season. Taijiang National Park, located in southern Taiwan's city of Tainan, is home to the largest number of mangrove land crabs on the island. During the breeding season from July to September, female crabs descend to 'the sea' to release their eggs. However, because their migration route crosses roads, they are vulnerable to being hit by cars. Taijiang National Park 'Director Chen Junshan said that the road closures, bamboo bridges and other measures have reduced roadkill -and helped increase crab numbers from more than 5,000 per year in earlier years to over 10,000 last. Chen said: "The mangrove land crab can bring all these nutrients back to the land and allow the coastal forest become more abundant." "If you protect land crabs, then the entire coastal forest belt will be protected." The 'environment' was given short shrift by the government during Taiwan’s rapid industrialisation in the 1960s and 1980s. A network of national parks and 'protected areas' are now being built across the island to attract tourists. Tainan's park is home to the black-faced. spoonbill bird, which was nearly extinct but has recovered. (Reporting and writing by Ann Wang, Fabian Hamacher, Ben Blanchard. Editing by Cynthia Osterman.)
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BHP iron ore employees vote to strike at Port Hedland on July 16,
BHP workers in Western Australia's Port Hedland operations gave notice of an eight-hour stoppage on July 16. This is expected to affect daily revenues of A$120,000,000 ($83.16 Million) for iron ore. After six months of unsuccessful negotiations, the unions called for action. A union statement said that employees from the port operations and maintenance staff of the company represented by Combined Ports Unions would participate in the strike. Adam Woodage, Secretary of the Electrical Trades Union WA, said: "This is not everyone's preferred solution, but if it is our one and only option, we will accept it." I hope that this will sharpen the minds of BHP's managers and shareholders on the importance to negotiate for a safe, fair and productive iron ore sector. Workers at BHP's Pilbara operations voted narrowly last week to approve a new labor agreement. BHP released a statement saying that it had "achieved a new enterprise contract at Mining Area C & South Flank which rewards 1,800 employees - without any industrial action". Every Australian benefits from the strength of the iron ore industry. We want to continue negotiating for a fair price while ensuring that?we keep our operations running safely. BHP shares fell 3.3% to A$56.92. This was slightly higher than losses by other miners, and also compared with a decline of?0.9% for Australia's benchmark index. The Labor government passed a law 2022 that gave unions the ability to negotiate wage deals with multiple employers and more flexibility to request. South Flank's agreement, signed last week, included a 16% guaranteed pay increase over a four-year period. It also included increases in site-based allowances as well as a new payment scheme for delayed flights. Port Hedland is used by Fortescue and Hancock and ships iron ore worth around $150 million a day. This highlights the potential for disruption.
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China's Momenta debuts at a low in Hong Kong amid AI listing caution
Momenta Global shares debuted?flat on Hong Kong's Stock Exchange Wednesday after the?Chinese autonomous-driving company raised approximately HK$5,89 billion ($751 millions) in its initial public offer. The stock opened at HK$301 compared to its IPO price, which was HK$295.60. It reached as high as HK$314.80 and then traded at the HK$299 mark. Momenta's debut will be a test for investor demand in Chinese AI and advanced tech companies. Hong Kong is facing a record number of lock-up expirations after a successful first half of new listings. Dickie Woong, executive director for research at Hong Kong's uSMART, said that the cooling of market sentiment was due to July's peak unlocking. Some new listings haven't performed as 'expected'. Investors are more selective about their valuations, particularly in AI and tech. According to the prospectus, cornerstone investors are big investors who have committed to buying shares before listing. These include existing backer Mercedes-Benz and BlackRock funds, as well as China's Boyu Capital. Other cornerstone investors are GIC, Fidelity, Oaktree and Franklin Templeton, as well as ChinaAMC. Gary Ng is a senior economist at Natixis CIB. He said that the lineup of cornerstone investors - and pricing at the highest end of the range - showed a decent level of global investor interest in China's AI story. Ng stated that "the lack of a sudden surge in interest suggests that sentiment is still cautious, with an emphasis on long-term prospects, as opposed to the global AI hype." There can be pressures on the valuation of tech companies. It is important to monitor whether these firms are able to hold up after listing, as this may not have been the case in previous cases. Hong Kong's debutants also experienced a mixed day on Wednesday. Reconova, a visual AI firm, opened 16.9% lower while Eacon, a mining autonomous-driving company started trading at 3.5% higher. BasicSemi, a maker of silicon carbide chips, opened 7.9% higher than Baogai. Momenta, founded in 2016 by Cao Xudong (former Microsoft researcher), sells software for driving assistance to automakers. The systems assist cars to steer, brake and 'change lanes, but the driver must remain alert and prepared to take control. Momenta will use 60% of its IPO proceeds to fund research and development. 20% will go towards robotaxi services. 10% is allocated for the mass-produced vehicle industry. In its prospectus, the company claimed that 680,000 vehicles would be using its software by 2025. Customers and partners of the company include Toyota, Mercedes-Benz SAIC Motor, General Motors BYD, Audi, and SAIC Motor.
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EMBARGO-BHP iron ore employees vote to strike at Port Hedland on July 18,
BHP Port Hedland workers in Western Australia gave notice on Wednesday of an 8-hour work stoppage scheduled for July 16. This is expected to disrupt daily revenue of A$120 million ($83.16 millions) worth of iron ore. After six months of unsuccessful negotiations, the unions called for action. The Combined Ports Unions, which represents workers in all port operations and maintenance staff of the company, will be participating in the strike. Adam Woodage, Secretary of the Electrical Trades Union WA, said: "This is not everyone's preferred option, but if it is the only one we have, then we will do it." "I hope that this will sharpen the minds of BHP managers and shareholders on?the importance to negotiate for a safe, fair and productive iron ore sector." Workers at BHP South Flank and Mining Area C, which produces iron ore, narrowly approved a new agreement last week. The Labor government passed a law in 2022 that gave unions the power to negotiate wage deals with multiple employers. They also have more flexibility to ask for flexible arrangements, and the ability to strike the entire industry. The South Flank agreement last week included an 16% guaranteed pay increase over a four-year period, as well as increases in site-based allowances. Port Hedland - which is also used by Fortescue and Hancock - ships about $150 million worth of iron ore per day, highlighting the potential for disruption.
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Bahrain reports limited power outage in Bahrain; Kuwait restores some power after outages
Kuwait's Ministry of Electricity, Water and Renewable Energy announced on Wednesday that power was restored to a number of affected areas?by electrical outages? after several transmission lines?went out of operation. The ministry stated that emergency teams are continuing to work to restore electricity as soon as possible to all the?affected areas?. Earlier, the ministry said that several power lines were out of service and causing "electricity outages" in various parts of the country. The ministry said that 'teams are working under an approved emergency?plan to identify the cause and restore power supply. Bahrain's Electricity and Water Authority (BNA) reported that it had also monitored a limited outage of power in?several parts of the kingdom. (Reporting and editing by Nia William and Lincoln Feast.
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Telstra outage disrupts Australian train services, taxi payments
Telstra, Australia's largest telecommunications company, suffered a?outage on Wednesday. The issue affected?taxi payments?systems, and certain train services. Due to communication problems, the operator suspended train services between Melbourne, Australia's largest?city, and regional towns. Passengers were advised to postpone travel if possible. Australian media reported that some passengers were unable to pay for their taxis, while drivers lost jobs due to the failure of their payment systems. In a press release, Emergency Management Minister Kristy McCain stated: "We are aware that Telstra is working to resolve the issue and arrangements are currently being made for rail passengers affected." Telstra stated that it was investigating a problem affecting data and mobile calls. Telstra urged customers to "try again" as?it might work if you retry. The company has not confirmed if the issue is related to mobile calls or data, nor when it will be resolved. Telstra stated that they were "on it" and would share an update as soon as the problem was resolved. Reporting by Renju Jose, Sydney; Nikita Maria Jio, Bengaluru. Editing by Jonathan Ananda & Sonali Paul
Maguire: The next big thing in climate adaptation isn't going to be solar panels, but asphalt.
The latest heatwave in Europe was a painful reminder that climate change is not just about cutting emissions. Temperatures in western Europe soared to over 40 degrees Celsius (104 degrees Fahrenheit). Roads buckled, rails warped, traffic signals malfunctioned, and transport operators implemented speed limits or cancelled services.
According to the U.N. Economic Commission for Europe, transport infrastructure in the region is more exposed to thermal stress and deformation of rails as heat extremes increase.
Since years, Europe’s infrastructure spending has been dominated?decarbonisation. Investors have focused on windmills, solar panels and electric vehicles.
A?different story? of infrastructure is emerging as it becomes apparent that Europe was built largely for a climate which no longer exists.
It may be that the next major investment cycle is less about generating cleaner energy, and more about making sure trains run, roads are intact, and electricity networks work during summer heatwaves.
The European Environment Agency identified the protection of infrastructure against heat-related risk as one of Europe's urgent adaptation priority.
The problem is most evident in the road surface.
Asphalt binders that are conventionally used soften in heat and cause cracking, rutting, and deformation. Many of Northern Europe's transportation infrastructures were designed to withstand temperatures that are no longer relevant with the fall in heat records.
This indicates an increase in demand for high-performance paving materials such as polymer-modified asphalt and other high performance paving materials that are already used in hotter climates.
TotalEnergies' Styrelf polymer-modified binder range is specifically marketed for its resistance to rutting and thermal cracking, as well as heavy climate stress.
These products are used on highways, airport runways and racing circuits.
Shell is also a potential winner. The company is still one of the largest bitumen suppliers in the world and has increased its range of advanced binder designed to increase pavement life span and withstand harsher operating conditions.
Investment opportunities do not always lie in the development of new technologies. The investment opportunity may be as simple as selling Northern Europe road materials that are already standard in Southern Europe, the Middle East and Asia.
The RAIL RESILIENCE BOOM
Railways are a greater challenge.
The European Union's ambitions to reduce carbon emissions are heavily dependent on the shift of passengers and goods onto rail. Rail systems are sensitive to temperature extremes, because steel expands when heated.
Heatwaves in recent weeks have caused service disruptions in multiple countries. Operators are dealing with deformation of rails, melting sealants and signalling problems, as well as speed restrictions.
UNECE warns that such disruptions will become more common if adaptation measures are not taken.
This creates new opportunities for rail infrastructure specialists.
The German company?Vossloh provides concrete sleepers and rail fastenings for various climate zones around the world.
The use of concrete sleepers and stronger fastening systems helps maintain track stability in periods of thermal expansion.
Pandrol's fastening system, which is used in rail networks all over the world, will also benefit from efforts made to increase track resilience and reduce maintenance requirements under climate conditions that are becoming more volatile.
voestalpine Rail Systems, Austria, also stands to benefit from increased spending on rail components and turnouts.
The climate adaptation strategy of Europe for transport could require that significant sections be rebuilt to standards previously associated with regions much hotter.
The Unsung Materials Story
Investors who are looking for adaptable winners should also pay attention to cement, specialty chemicals, and construction materials.
Thermal expansion and accelerated wear are the main effects of heat stress on bridges, tunnels, and other civil structures.
Companies like?Heidelberg Materials and Sika can be attractive in this area because they provide advanced concretes, specialty add-ins, sealants and reinforcement systems, as well as other products which extend the life of assets under harsh conditions.
It is possible that the adaptation trade will end up being as much a story of materials as it is an engineering story.
Climate adaptation, just as the energy shift created a demand for lithium and copper, could also create a sustained?demand for high-performance concrete and advanced steel products, and construction chemicals.
DON'T FORGET THE GRID
Power sector is another story.
Electricity is becoming increasingly important for transport systems. All transport systems, including railways, signalling, charging infrastructure, and urban transit networks, require power networks that can operate in extreme temperatures.
This should encourage the demand for higher-performance cables and transmission systems with upgraded conductors.
Prysmian, Nexans and other major European grid expansion projects are all already being supplied by these companies. The Nordic cable manufacturer NKT will benefit from the network reinforcement and underground wiring programmes. French grid operator RTE recently announced plans to lay 45,000 km of transmission and distribution cables by 2030.
IS THIS THE NEXT SUPER-CYCLE IN INFRASTRUCTURE? The decarbonisation market continues to 'overshadow the adaptation market, which could be shortsighted.
If rail services are not available during heatwaves, every euro spent on electrifying transportation is less valuable. If transmission systems are unable to cope with extreme weather, then every investment in clean energy loses value.
Europe's policymakers spent more than two decades trying to figure out how to reduce emissions.
It may be more important to ask how society can continue to function in a world that is warmer.
Heat-resistant asphalt, advanced elastomeric lubricants and expansion joints are unlikely to generate the same excitement as solar and battery stocks.
When temperatures exceed 40C, they can be just as important.
These are the opinions of the columnist, who is also an author. This column is great! Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
(source: Reuters)