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Two bidders are in discussion with Petroplus’ administrators to purchase the 220 kb/d Coryton refinery, according to Richard Howitt, the Member of the European Parliament for the constituency in which the plant is based. Howitt added that one of the bidders hoped that a deal would be reached in the next ten days. The refinery was scheduled to be closed this month should no buyer be found. A deal to continue supplying the plant with crude expired yesterday. Any deal to save the refinery from closure would follow on from the recent sales of the 107 kb/d Antwerp and 68 kb/d Cressier refineries, both previously owned by Petroplus.

South Korean coal imports fell 18% month-on-month to 8.8 Mt in April, the lowest monthly level since May 2010, according to McCloskey. Total imports in the first four months of this year fell marginally (0.9 Mt) year-on-year to 41.8 Mt.

US crude stocks posted further gains last week, rising by 2.1 MB to 381.6 MB, as domestic production continued to rise. Inventories reached a level 27.3 MB higher than the five year average for the week and are at their highest weekly level since August 1990. Crude imports dropped by 86 kb/d to 8.88 mb/d, a level 593 kb/d below the five year average for the week. US crude runs rose by 302 kb/d to 15.04 mb/d, thanks largely to a significant increase in USG processing. Overall US refinery utilisation rose to 88.3% of total capacity, up from 86.4% a week earlier and the highest weekly level since September. Meanwhile, gasoline stocks fell by 2.8 MB to 204.3 MB as both demand and imports increase. Imports were 68 kb/d higher than the week before at 675 kb/d. The 13-week average for gasoline imports is 27.6% lower yoy, however. Distillate stocks also declined, falling by 1.0 MB to 119.8 MB. Exports surpassed 1.0 mb/d once more and offset a drop in demand and output.

The world export price of hot rolled band slipped by $8/t from three weeks ago to a 3-month low of $643/t, according to World Steel Dynamics. This compared with the 2012-high of $656 in mid-March. The HRB steel price continued to lose momentum in the US, falling $16/t from three weeks ago to $738/t, the lowest level since November 2011. The European HRB steel price was down $20/t from the recent high seen at the end of February to $680/t. Meanwhile, the Chinese HRB price eased $13/t lower to a 2-month low of $570.

Shell has said it is losing at least 43 kb/d of its Nigerian crude production to theft, Reuters reports. The firm estimates that total theft of Nigerian oil from pipelines – known as bunkering – amounts to 150 kb/d. In a separate report, the country’s finance minister is quoted as saying that theft is costing Nigeria 17% of its total oil revenues. The growing problem of oil theft is the latest in a series of security concerns that have jeopardised Nigerian crude supply and future investment in the sector. Although not citing any specific reasons, and thus not necessarily connected to security issues, it was recently reported that ConocoPhillips intends to sell its Nigerian oil fields as it looks to exit the country entirely.

Preliminary trade data show a continuing rebound in Chinese coal imports in April, according to Xinhua Infolink. China imported 23.9 Mt of coal (including lignite), up 2.5 Mt on March. This compared with 13.2 Mt in the same month last year and the peak of 27.2 Mt in November 2011.

The cash price of steel billet on the London Metal Exchange fell sharply, down $35/t from last Friday to $431/t. This is $114/t lower than the level seen at the beginning of 2012 and marks the lowest level since mid-October 2010. Meanwhile, the 3-month contract price also decreased, down $25/t to $450/t.

Pipeline exports of Russian crude to destinations outside the Former Soviet Union averaged 4.56 mb/d during April, a 3.6% rise yoy, up 9.1% from March, and the highest level since April 2007, Argus reports. A 10.9% yoy and 31.8% yoy increase in shipments from Baltic ports to 1.90 mb/d came about as full operations began at the new Ust-Luga crude terminal. Possibly as a result of volumes being diverted here, overland shipments along the Druzhba pipeline fell. Thanks to a large increase in shipments from Novorossiysk, overall Black Sea exports rose by 7.8% from March to 0.92 mb/d, but this was 4.7% lower yoy after a significant decline in loadings from Tuapse. Shipments along the ESPO pipeline to the Pacific port of Kozmino were unchanged from a year earlier, but up 11.3% from March at 0.32 mb/d. Deliveries along the spur line to China were up 3.3% on the month, but down 1.2% yoy at 0.31 mb/d.

March exports of steam coal jumped to 4.4 Mt (excluding cargoes to Canada) compared with 2.8 Mt the previous month and 2.6 Mt in the March 2011. Exports to China, India, Japan and South Korea in March more than trebled to 1 Mt from February, helping support demand for Panamaxes loading in the Atlantic. Coking coal exports from the US also enjoyed a strong March, reaching 5.5 Mt, up 1.1 Mt on February (excl. Canada-bound cargoes). In contrast to steam coal, however, shipments of coking coal in March were 0.4 Mt lower than the year-ago total.

In its May Oil Market Report, the IEA raised its global oil demand forecast for 2012 by 80 kb/d to 90.0 mb/d, representative of a 0.8 mb/d increase year on year. The agency continues to envisage an acceleration in demand as the year progresses, with consumption peaking at 91.1 mb/d in Q4, following a low of 88.6 mb/d in Q2. OECD and non-OECD demand is expected to continue to converge in 2012, with OECD 2012 consumption seen falling by 0.4 mb/d yoy to an average of 45.2 mb/d, whilst non-OECD demand is expected to rise by 1.5 mb/d to 44.8 mb/d.

In its initial projection, the US Department of Agriculture (USDA) expects world wheat trade in the 2012/13 trading year to be down by 7.7 Mt on this year to 137.4 Mt, due to reduced Asian import demand for feed wheat. The forecast for wheat exports from the US in 2012/13 is up 4.0 Mt from this year to 31.5 Mt, which partially offset declines in other countries: Argentina (-3.5 Mt to 7.0 Mt), Australia (-0.5 Mt to 20.5 Mt), the EU (-2 Mt to 14.5 Mt) and the FSU (-5.0 Mt to 30.5 Mt). The USDA expects US soyabean exports in the 2012/13 (Sep-Oct) trading year to rise by 5.2 Mt on this year to a new record of 41.0 Mt, supported by strong import demand from China. The USDA forecasts China’s soyabean imports to rise by 5.0 Mt on this year to 61.0 Mt in 2012/13. The total forecast for soyabean exports from Brazil and Argentina in 2012/13 is unchanged from this year’s estimate, at 44.3 Mt.

According to preliminary trade data, China imported 5.44 mb/d of crude oil during April, a 129 kb/d decline from March, after refiners reduced purchases ahead of peak spring maintenance. April’s imports were up 176 kb/d compared with the same month in 2011, representing the slowest monthly rate of yoy growth since last September. More detailed data, including imports and exports of individual product types, are due later in the month.

Preliminary customs data show that Chinese iron ore imports in April fell to their lowest monthly level since October 2011, down 8% on March to 57.7 Mt. However, April’s figure is still 9% higher than the year-ago level and coincided with a 6-month high for iron ore prices (suggesting that the lower imports owned much to restrict on global supplies). Total imports in January to April of the year reached 244.9 Mt, with an increase of 6% on the corresponding period 2011.

Throughput during April at Richards Bay fell 1.1 Mt on March to 5.2 Mt, compared with 4.8 Mt in the same month last year, port authority data shows. The coal terminal’s January to April throughput total is up 2.8 Mt year-on-year, and annualises to 65.9 Mt (port throughput in 2011 was 65.5 Mtpa against design capacity of 91 Mtpa).

OPEC crude production reached 32.00 mb/d in April, up by 340 kb/d from March, and the highest level for three and a half year, according to Argus calculations. Iraq saw the largest output increase amongst the group’s twelve members, with production rising by 250 kb/d in April to a record 3.10 mb/d. Recent Iraqi increases have come about thanks to new export infrastructure in the southern city of Basrah, that has removed a production bottleneck. Saudi Arabian production rose by 50 kb/d from March to 9.95 mb/d, whilst West African output also rose. Nigerian flows reached 2.32 mb/d, a 60 kb/d increase, and Angolan production was 30 kb/d higher at 1.75 mb/d. Libyan output continued to recover, reaching 1.40 mb/d in April, up by 100 kb/d from March. Iranian production continued to decline ahead of mid-year sanctions, with April output falling by 150 kb/d to 3.20 mb/d. Production from OPEC’s remaining members was stable.

Exports of iron ore from Australia totalled 38.2 Mt in March (wet basis), according to the Australian Bureau of Statistics. This takes the 1q12 total to 113.8 Mt (down 13 Mt from the previous quarter). Meanwhile, April throughput data for Port Hedland have been released. These show a monthly increase, with 20.7 Mt shipped in April compared with 18.7 Mt in March.

The UAE’s pipeline for bypassing the Strait of Hormuz has been completed and exports are expected to commence within three months, reports Reuters. Tests have been run on the pipeline, which will initially operate at a rate of 1.4 mb/d, and offers an alternative route out of the Strait which Iran has threatened to block in response to stricter western sanctions on its oil. Capacity of the pipeline, which links the Habshan oilfields to Fujairah, could rise to 1.8 mb/d. A portion of the oil flowing through the pipeline will be used by a refinery in Fujairah while the rest will be exported by ship.

A new export tax of 20% on unprocessed ore exports from Indonesia has been announced, media sources report. Quoting senior government officials, Reuters adds that exports will be banned unless mining companies commit to building processing facilities. So far 82 proposals have been submitted from 400 companies. Companies holding Contracts of Work will be exempt from the new regulations for the present, however, this arrangement may also come under negotiation, according to Reuters’ sources.

Brazil’s iron ore exports slipped 2.0 Mt month-on-month to 25.6 Mt in April, according to the country’s Trade Ministry. This still marks an improvement on the weak January figure of 18.2 Mt, but falls far short of the 2h11 volumes when 183 Mt were shipped in six months.

US gasoline inventories posted a 2.0 MB decline last week to 209.7 MB, matching the five-year average for the equivalent week, according to the latest provisional data from the EIA. Domestic demand rose by 197 kb/d to 8.69 mb/d, whilst production was stable at 8.79 mb/d. Imports rose by 154 kb/d to 774 kb/d. Distillate inventories dropped by 1.9 MB to 124.0 MB last week, despite a 246 kb/d drop in demand to 3.55 mb/d. Production was 66 kb/d lower at 4.13 mb/d. Crude inventories built for the sixth consecutive week, rising by 2.8 MB to 375.9 MB. Imports were 56 kb/d higher at 8.82 mb/d, whilst US crude runs rebounded to 14.71 mb/d, a 230 kb/d increase from the week before. Overall refinery utilisation rose from 84.7% to 86.0% of total capacity.

China’s rebar future contract prices for October delivery on the Shanghai Futures Exchange have fallen to their lowest level since 7 March, closing at $670/t.

In the soyabean markets, drought affected crops in Latin America have spiked fob prices in Brazil and the US Gulf to their highest levels since mid-July 2008, standing above $570/t at the end of April.

Official data from the National Bureau of Statistics showed a further recovery in manufacturing activity in April. China’s Purchasing Managers Index stood above the key reading of 50 for a fifth consecutive month, rising to the highest level since March 2011, at 53.3 in April (any reading above 50 indicates an expansion of manufacturing activity).

Coal exports from the Carrington and Kooragang terminals at Newcastle rose 41% or 2.8 Mt month-on-month to a record of 10.0 Mt in April, according to Port Waratah Coal Services. April saw almost 2.0 Mt of coal shipped to China (compared with 0.5 Mt in April last year). However, shipments to Japan fell to a 5-month low of 4.5 Mt, accounting for 45% of total exports.

Newcastle Coal Infrastructure Group (NCIG) is expected to increase capacity at its coal export terminal from 30 Mtpy to 53 Mtpy in mid-2012 when its second construction phase is completed. The third and final construction phase is on schedule for commissioning in mid-2013 and would bring the terminal’s throughput to 66 Mtpy.