The great defrost & Canada exempt from US steel tariff

The giant melt has begun in Alberta and power prices settled 2% lower than last week at $31.64/MWh. Forward prices are down slightly, mostly attributed to a decrease in the April forwards. Prices are still expected to settle over $70/MWh, which would be the highest monthly settle since June 2015 at $97.31/MWh. The Enmax PPA dispute has been settled and it is up to the Balancing Pool to decide if it will be returned to industry.

 

Gas prices settled 3% higher this week at $1.96/GJ. Premier Rachel Notley is threatening to cut shipments to Western and Eastern provinces and has said there could be a tax on BC natural gas shipped across Alberta. The article can be read here.

 

Canada and Mexico are exempt from tariffs on steel and aluminum imported into the US, but the decision is not final. The fate of these tariffs will be aligned with the new NAFTA. Canada currently supplies approx. 17% of the US’s steel demand and 40% of its aluminum. Steel tariffs may raise the cost of oil and gas pipelines by as much as 25%.