MH Daily Bulletin: February 2

February 2, 2023 • Posted in Daily Bulletin

News relevant to the plastics industry:

At M. Holland

  • M. Holland will be exhibiting at MD&M West in Anaheim on Feb. 7-9. Stop by Booth #4115 to meet our Healthcare team and discuss how M. Holland’s line of medical-grade resins can help you develop safe and effective medical products and packaging.

Supply

  • Oil slid 3% Wednesday after U.S. data showed huge builds in crude stocks last week, signaling an oversupply.
  • In mid-morning trading today, WTI futures were down 0.2% at $76.24/bbl, Brent was down 0.3% at $82.59/bbl, and U.S. natural gas was up 1.7% at $2.51/MMBtu.
  • U.S. crude stocks climbed 4.1 million barrels last week to their highest level since June 2021, the Energy Information Administration said.
  • U.S. LNG exports fell 5% in January as cold weather boosted natural gas demand at home and producers sent less gas to Europe.
  • OPEC+ opted not to change its current production schedule, as widely expected.
  • OPEC’s oil output likely fell about 920,000 bpd below target in January, primarily due to underproduction in Iraq and Nigeria, according to Reuters.
  • Costs to build Canada’s first major LNG export plant have more than doubled from original estimates to more than $10 billion due to labor issues.
  • More news related to the war in Ukraine:
  • Shell’s earnings more than doubled in 2022 to over $39 billion, a record.
  • The EU unveiled its Green Deal Industrial Plan Wednesday, an effort to catch up to U.S. and Chinese initiatives supporting green-energy tech.
  • Amazon says its recent renewable investments will enable it to operate entirely on clean energy as soon as 2025.
  • The World Bank is lending over $300 million to West and Central African nations to support solar, battery and hydro projects.

Supply Chain

Domestic Markets

United States Fed Funds Rate
  • The U.S. dollar fell to a nine-month low against a basket of currencies Wednesday after central bank leadership indicated the country is making progress in bringing down inflation.
  • The Labor Department says U.S. job openings unexpectedly rose to 11 million in December, the most in five months, while layoffs were 15% higher than a year earlier.
United States Job Openings
  • U.S. manufacturing activity contracted for a third month in January, while construction spending unexpectedly fell in December.
  • U.S. workers now occupy over 50% of available office space for the first time of the pandemic.
  • In the latest news from quarterly earnings season:
    • Medical equipment-maker Stryker reported a drop in quarterly profit despite record sales growth and issued an optimistic outlook for 2023.
    • Pharmaceuticals giant Merck posted strong fourth-quarter profits, but its outlook for 2023 fell short of analyst estimates due to reduced expectations for its Lagevrio COVID-19 treatment.
    • Despite a 6% rise in revenues in the fourth quarter, Honeywell’s earnings slid 29% as the industrial giant forecast slower growth in the year ahead.
    • Facebook parent Meta saw revenue drop 4.5% but reported improving conditions in its underlying business and said it would buy back an additional $40 billion in shares.
    • T-Mobile missed revenue estimates despite adding thousands of wireless subscribers.
    • Johnson Controls, provider of heating and air-conditioning systems for offices and hospitals, missed revenue targets due to supply-chain issues.
    • MetLife insurance reported a 33% drop in quarterly profit as a global market rout hit its investment returns.
  • Intel is imposing management pay cuts across the board as the company looks to limit expenses in the face of weakening demand.

International Markets

Some sources linked are subscription services.

Stay informed with industry trends and insights.

Stay informed with industry trends and insights.

This field is for validation purposes and should be left unchanged.