In this issue of the Commodity Markets Update, we examine the exogenous forces reasserting their will across commodity markets.

In their article on steel, Benjamin Durfee and Jay Foraker examine the main drivers supporting positive trends in the steel industry and outline the implications that President Trump’s tariffs will have on the domestic steel market. On the topic of tariffs, Ben Macaskill also discusses how the announcement of tariffs and sanctions in March and April has unsettled aluminum markets.

Also in this issue, John Harms looks at the new IMO 2020 regulation and its impact on the shipping industry. Refineries will have to choose how much to invest in desulfurization technology, and shipping companies will have to decide whether to install “scrubbing” equipment – both at great capital costs. In addition, Henry Goldman discusses how regional power and gas markets fared during this past winter’s cold front. Finally, we sit down with James Calaway, industry expert and the chairman of Global Geoscience, to discuss the growth in demand for lithium, what it will take to ramp up supply and how lithium is driving the electric vehicle revolution.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Compliance Notes:

This publication is provided by Brown Brothers Harriman & Co. and its subsidiaries (“BBH”) to recipients, who are classified as Professional Clients or Eligible Counterparties if in the European Economic Area (“EEA”), solely for informational purposes. This does not constitute legal, tax or investment advice and is not intended as an offer to sell or a solicitation to buy securities or investment products. Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code or for promotion, marketing or recommendation to third parties. This information has been obtained from sources believed to be reliable that are available upon request. This material does not comprise an offer of services. Any opinions expressed are subject to change without notice. Unauthorized use or distribution without the prior written permission of BBH is prohibited. This publication is approved for distribution in member states of the EEA by Brown Brothers Harriman Investor Services Limited, authorized and regulated by the Financial Conduct Authority (FCA). BBH is a service mark of Brown Brothers Harriman & Co., registered in the United States and other countries.
© Brown Brothers Harriman & Co. 2018. All rights reserved. 2018.

PB-02247-2018-05-16