COVID-19 Bulletin: March 31
March 31, 2022 • Posted in Daily BulletinMore news relevant to the plastics industry:
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Supply
- After oil prices rose 3% Wednesday on reports of a drawdown in U.S. crude stocks and continued fighting in Ukraine, the gains were reversed on news that the U.S. could start releasing 1 million bpd from strategic reserves for several months, with a formal announcement expected by the White House today.
- In mid-morning trading today, WTI futures were down 4.1% at $103.40/bbl, Brent was down 5.0% at $108.40/bbl and U.S. natural gas was up 3.6% at $5.81/MMBtu.
- OPEC+ member nations will decide later today whether to stick to a modest output increase of 432,000 bpd in May.
- U.S. crude stockpiles fell by a larger-than-expected 3.4 million barrels last week to the lowest level since late 2018, while emergency reserves fell to a two-decade low. Meanwhile, a surprise build in gasoline and distillate stocks tempered upward oil price pressure.
- After seven weeks of holding steady, U.S. crude output inched up 100,000 bpd last week to 11.7 million bpd, while Gulf Coast refinery utilization rose to its highest level since January 2020.
- U.S. gas storage is 17% below normal for this time of year despite record production, as surging exports to Europe keep supplies tight and prices high.
- More oil news related to the war in Europe:
- European natural gas prices jumped 12% yesterday after Germany triggered an emergency plan to manage supplies and several other nations — including Italy, Latvia, the Netherlands and Greece — took steps to conserve gas or plan for supply shocks. The moves stem from Russia’s demand for its energy exports to be paid for in rubles, despite 97% of contracts using euros or U.S. dollars. Russia later said it would give buyers time to make the switch despite uncertainty over how the switch would actually take place.
- Germany’s emergency gas-management plan could lead to power rationing, where industry would be first in line for cuts, with preferential treatment given to private households, hospitals and other critical institutions. The nation’s top chemical association said the industry may have to close production facilities for months under that scenario, while another large industry group began asking for government support.
- France, far less dependent on Russian gas than Germany, said the country should not encounter any supply issues from a drop-off in Russian supplies.
- Germany, France, Belgium and Italy are holding talks with Qatar about a long-term LNG supply deal.
- China’s CNOOC is delaying more Russian investment despite the gap left by Western majors that exited the nation.
- CNOOC, China’s biggest offshore producer, could be the latest and largest in a string of international firms, including Exxon Mobil and Chevron, to sell its British assets in the aging North Sea basin.
- A top lobbying group for auto makers and suppliers has backed a White House proposal for stricter air pollution standards for passenger cars starting in 2023.
- Sri Lanka has resorted to hours-long blackouts as its worst economic crisis in decades leaves the city-state unable to import energy and forces gas companies to suspend supplies.
- British regulators approved plans to build a new subsea cable with Scotland, which could improve sharing of renewable energy and help power some 2 million homes.
Supply Chain
- AccuWeather predicts another strong hurricane season this year, with up to six named storms directly striking the U.S.
- The White House could soon invoke Cold War-era powers to spur domestic production of critical battery materials.
- The U.S. must focus on rebuilding domestic manufacturing and lessen ties to unfriendly economies, the nation’s top trade official said Wednesday.
- The official purchasing managers index of Chinese manufacturing activity dipped below 50 in March, signaling contraction.
- The most recent effort to refloat a giant container ship stuck in the Chesapeake Bay for over two weeks has failed.
- Maersk upped its orders for Volvo’s electric Class 8 tractors from 16 to 126, marking the largest single order among makers of battery-electric trucks to date.
- Maersk will build its first vessel dedicated to offshore wind installation for use off New York state by 2025.
- FedEx will begin testing an autonomous air cargo drone made by Elroy Air in 2023.
- Tesla will reportedly source more of its key battery metal nickel from Canada as Eastern European shipments drop off.
- Toyota and Honda both defied parts shortages last month for respective production increases of 11% and 8.1% from a year ago.
- Logistics operators are increasingly asking for longer container ship charters, as much as 10 years, according to Flex LNG. Meanwhile, the charter market has shrunk by some 1.6 million TEUs of capacity since the first year of the pandemic.
- British regulators blocked a $5 billion merger between container-handling equipment makers Cargotec and Konecranes.
- Israeli shipper Zim signed a $600 million charter for half-a-dozen 5,500-TEU newbuilds to be delivered over the next two years.
- Norwegian bulk shipper G2 Ocean pledged to purchase zero-emission vessels on its way toward net-zero emissions by 2050.
- U.S. grain shippers are raising complaints to federal regulators over rail network disruptions that are forcing shutdowns of flour and feed mills.
- Two million acres of U.S. farmland could be converted from corn to soybean as farmers react to sky-high fertilizer prices.
- After two weeks of food shortages caused by truckers protesting fuel prices, Spanish retailers received a greenlight to start limiting customer purchases.
- Walgreens plans to open 22 automated prescription centers across the U.S. over the next three years, when as much as half the firm’s total prescription volume could be filled by robots.
- More supply chain news related to the war in Europe:
- Russia indicated its demand for gas exports to be paid in rubles could be extended to other commodities including oil, grain and metals.
- Reports suggest Russia is planting drifting mines in the Black Sea, a major shipping route for grain, oil and oil products used by several nations.
- Russia’s Rusal, the world’s second-largest aluminum maker, is forecasting stark financial consequences from Western sanctions.
- Some vegetable prices in Europe are rising by double digits, pushing up the cost of common meals.
Domestic Markets
- The U.S. reported 38,108 new COVID-19 infections and 1,221 virus fatalities Wednesday.
- Fewer than 17,000 people are hospitalized with COVID-19 nationally, the lowest since Spring 2020.
- A growing number of states are closing COVID-19 testing sites and cutting back on data reports amid declining infections nationwide. Surveys suggest most Americans are taking fewer virus precautions, including mask-wearing.
- COVID-19 cases in New York City are on the rise again, driven by the BA.2 subvariant of Omicron.
- Los Angeles decided Wednesday to end its proof-of-vaccine mandate for indoor businesses.
- The Boston City Council voted to limit picketing at private residences after officials faced protests at their homes over strict pandemic rules.
- The CDC dropped its long-standing COVID-19 warning for traveling on cruise ships, a boon for one of the hardest-hit industries of the pandemic.
- Walgreens and Rite Aid will begin offering second booster doses of COVID-19 vaccines this week.
- The White House is raising pressure on Congress to approve another $15 billion in pandemic funding before lawmakers leave next week for a two-week recess.
- First-time jobless claims were at a more than five-decade low last week, down to 187,000.
- U.S. employers maintained a brisk pace of hiring in March, with private payrolls rising by a surprise 455,000, according to ADP. The leisure and hospitality sector led with 161,000 positions.
- A near-record 4.4 million Americans quit their jobs last month, the ninth straight month the figure surpassed 4 million.
- U.S. banks led a 12.2% decline in corporate profit margins last quarter, new data from the Commerce Department shows.
- More than half of American workers say they still have not returned to the office, new survey results show.
- Positive drug tests among U.S. workers hit a two-year high last year, led by positive results for THC, the active ingredient in marijuana, which were up 50% from 2017 despite fewer employers testing for the substance.
- One in five Americans surveyed said they were living from paycheck to paycheck, up from 15% last year.
- The average U.S. mortgage rate hit 4.8% this week, the highest since 2018, causing refinancing applications to plunge over 60% from the same time last year.
- Metro-area rents surged almost 30% in Florida last year on a flood of new residents, data shows.
- Florida and Texas more than doubled the number of tech job gains from California last year.
- Rising prices have had little effect on Las Vegas, which pulled in a record $7 billion in gambling revenue last year and shows few signs of slowing down.
- Google’s self-driving unit Waymo has deployed full self-driving vehicles for employee use in San Francisco, its first foray into a major metro area.
- GMC says pre-orders for its upcoming electric Hummer will fill production to at least the end of 2024.
- Apple is reportedly developing an in-house infrastructure for future financial products, which could include payment processing, risk assessment for lending, fraud analysis and credit checks, among other services.
International Markets
- Counting changes contributed to a 40% jump in reported COVID-19 deaths last week globally, while new infections eased.
- France reported 217,480 new COVID-19 infections Tuesday, the most in two months.
- Ontario officials are urging residents to continue mask-wearing amid a sixth wave of COVID-19 that brought over 2,800 new infections yesterday.
- Authorities locked down the western half of Shanghai two days ahead of schedule Wednesday as COVID-19 cases continued a sharp rise, prompting the city’s government to release a $22 billion aid package for affected businesses.
- Daily COVID-19 cases in South Korea are three times higher per capita than any previous wave in the U.S. or U.K.
- Switzerland will end all remaining pandemic restrictions Friday.
- BioNTech is expanding its partnership with Pfizer to include more trial programs for future COVID-19 vaccines.
- The Czech Republic will soon see its highest interest rate in 20 years, banking officials said.
- More news related to the war in Europe:
- The U.S. and EU are readying new sanctions on more sectors of Russia’s economy, including military supply chains.
- The White House pledged another $500 million in Ukrainian support yesterday to be used for expenses like paying salaries and maintaining government services.
- Dublin-based AerCap, the world’s top aircraft lessor, submitted a $3.5 billion insurance claim for more than 100 jets stuck in Russia, accounting for 5% of its fleet.
At M. Holland
- M. Holland’s 3D Printing group offers a rapid response alternative for producing selected parts where resin availability is tight. For more information, email our 3D Printing team.
- Market Expertise: M. Holland offers a host of resources to clients, prospects and suppliers across nine strategic markets.
For all COVID-19 updates and notices, please refer to the M. Holland website.