As businesses look to expand their reach in the global marketplace, it is crucial to stay informed about the latest developments in various sectors. This article highlights some recent news that could impact your business’s growth and international competitiveness.
China’s ETS Expansion and the EU’s CBAM
China is expected to accelerate the expansion of its national compliance emission trading scheme (ETS) in the next 2-3 years to cover sectors eligible under the EU’s cross-border adjustment mechanism (CBAM), mainly cement, aluminum, and iron and steel.
The recent approval of CBAM regulations by Europe has added a sense of urgency to this expansion. Carbon traders expect the ETS expansion to take place within the next two years, facilitated by pilot carbon markets set up since 2013 at the provincial level.
FAO Food Price Index and Global Commodity Prices
The FAO Food Price Index increased by 0.6% in April, the first uptick in 13 months. The Sugar Price Index rose by 17.6% from March to its highest level since October 2011. Lower production forecasts and slow harvests in various countries pushed food prices higher. The Meat Price Index increased by 1.3% in April, with pig meat seeing the sharpest increases. Vegetable oil prices fell by 1.3% due to stable palm oil prices and lower soy, sunflower, and rapeseed oil prices. The Cereal Price Index declined by 1.7% in April, with international wheat prices declining by 2.3% to their lowest level since July 2021.
U.S. Crude Exports and the Impact on Global Oil Markets
U.S. crude exports reached a record of about 4.5 million barrels per day in March. Rising output has absorbed most of the space on lines to the main South Texas export hub in Corpus Christi. Pipelines that move oil from the Permian basin in West Texas to Corpus Christi are more than 90% full. Houston has ample room for new products from the Permian basin to flow. Crude export volumes from Corpus Christi accounted for about 60% of all U.S. oil exports in 2022. Plans to widen the Houston ship channel to reduce congestion and a 250,000 bpd expansion of capacity at Exxon’s Beaumont refinery will
help boost flows to Houston.
U.S. Crude Exports
Preparing Your Business for Global Expansion As the global marketplace continues to evolve, businesses must stay informed about the latest developments in various sectors to remain competitive. By understanding the impact of China’s ETS expansion, fluctuations in global commodity prices, and changes in the global oil market, businesses can better prepare for the challenges and opportunities that come with expanding their operations internationally.