Commodities Focus

Metals like aluminum and steel had been relatively unaffected as COVID-19 began to spread in the US, but the shift came as automakers – including The Big 3 and others – announced temporary production stoppages in North America. Auto is a growing demand sector for aluminum. Another big consumer – the aerospace industry – has been gutted as airlines have slashed flights and Boeing announced a temporary production stoppage in Washington state. A number of states have implemented lockdowns of non-essential businesses, as well. Chris Davis, Sarah Baltic and Nick Ruggiero of S&P Global Platts examine the aluminum market and where it might be headed.

The shipping markets are often considered a bellwether of global trade, and the dry bulk and container markets are on their knees due to the coronavirus pandemic. Editors George Griffiths and Sam Eckett take a look at whether there are any positive signs of global economic recovery in the seaborne markets while on-shore market participants remain bound to their living rooms.

Global commodity markets have been hit by a combination of the oil price war and the coronavirus pandemic, and European wheat is no exception. Robert Beaman talks to senior grains editor Alexandre Bobylov about how the French and Black Sea Wheat markets are reacting, while Piero Carello looks at how the pandemic and fluctuating exchange rates are affecting the agriculture logistics chain.

The coronavirus pandemic has impacted all aspects of daily life and US power markets are not immune. With the majority of people staying at home, per recommendations to stop the spread of the disease, grid operators are keeping a close eye on changes in power demand and how to respond.

Cash prices for US diesel and jet fuel markets have been under heavy pressure since the coronavirus outbreak hit the US. Jet fuel has seen the worst impact, with prices falling to multiyear lows. Diesel prices have mostly avoided any large drops, but it’s unclear how long that will last. Ellie Valencia, senior pricing specialist for US jet fuel; and Margaret Rogers, senior pricing specialist, US diesel; discuss the markets with Joshua Brown, manager, US distillates and Latin products.

S&P Global Platts market specialists Kirsten Hays, Eric Su, and Simon Price join associate director Vanessa Ronsisvalle to give a global view on how the impact of the coronavirus pandemic and the recent oil price crash are affecting petrochemical markets, with particular focus on blendstocks, olefins, and aromatics.

Unlike other commodities sectors, the domestic steel market seemed to be largely immune during the first few weeks of Covid-19’s spread across the US. Prices held relatively steady and mill production was fairly constant, with most participants basically in wait-and-see mode, but concern was limited. The scenario has shifted dramatically in recent days. The Big 3 automakers of GM, Ford and Fiat-Chrysler, as well as Honda and Toyota, announced temporary production stoppages in North America. That got the attention of flat-rolled steel producers, distributors, and even scrap processors. Christopher Davis, S&P Global Platts regional pricing director for metals in the Americas, examines the market with Mike Fitzgerald, US ferrous metals managing editor, and and Nick Ruggiero, regional metals derivatives manager.

China's long-awaited value-added-tax rebate on fuel oil paved the way for domestic producers to supply bunker fuel to ships plying international routes at Chinese ports. A month after its implementation, S&P Global Platts fuel oil experts Su Ling Teo and Rajesh Nair examine what has changed and what the road ahead looks like for China's bunker market, and whether it the country is getting closer to its dream of being a bunkering hub in Asia.

With commodities weakening on the back of the coronavirus epidemic and the oil price crash, Robert Beaman of S&P Global Platts talks to sugar specialists Nicolle Monteiro de Castro and Beatriz Pupo about the impact on the Brazilian sugar market. Brazilian sugar has been in the news following February’s reversal of fortunes in Brazil’s Center-South region, which saw sugar prices starting to pay producers better than ethanol for the first time since 2017. Joined by global manager Piero Carello, the team investigates the impact on the Brazilian sugar and ethanol markets and looks at the global context of these changes.

US LNG developers face challenges advancing any new export projects this year amid the escalating coronavirus outbreak, which has exacerbated the drop in global demand that has already led to record-low prices in Asia. Decision makers are lamenting that for the foreseeable future China’s door appears to be shut to US LNG, and that has put the sector in hunker-down mode as participants try to ride out the turmoil. S&P Global Platts senior natural gas writer Harry Weber and senior digital editor Jason Lindquist discuss the challenges ahead.