MH Daily Bulletin: July 6

July 6, 2022 • Posted in Daily Bulletin

News relevant to the plastics industry:

At M. Holland

  • We are numb with grief over this weekend’s mass shooting in Highland Park, Illinois, a neighboring community to M. Holland’s headquarters and home to many Mployees. Fortunately, all Mployees are safe and accounted for, but our hearts and thoughts are with the community after this tragic attack. Our President and CEO Ed Holland shared this message with Mployees this week.

Supply

  • Oil plummeted 9% Tuesday in the biggest daily drop since March on growing fears of a global recession. WTI closed below $100/bbl, while U.S. natural gas prices fell almost 5%
  • In mid-morning trading today, WTI futures were off 4.1% at $95.38/bbl, Brent was down 3.9% at $98.79/bbl, and U.S. natural gas was down 1.3% at $5.45/MMBtu. 
  • U.S. refiners sent over 5 million barrels of emergency crude stock to Europe and Asia in June, blunting White House efforts to bring down fuel prices by releasing more of the reserves. 
  • Last year, the U.S. saw its first increase in coal consumption since 2013:
Fossil fuel sources accounted for 79% of U.S. consumption of primary energy in 2021
  • Shell joined other Western oil majors in taking a stake in the world’s largest LNG project in Qatar.
  • Norway’s petroleum output will remain stable after the government reached a deal with striking oil and gas workers Monday. 
  • Saudi Arabia raised crude selling prices to Asian buyers by $2.80/bbl to a near-record premium over Oman/Dubai quotes. 
  • Sri Lanka closed schools, imposed power rationing and halted more fuel sales as the island’s fuel supplies completely dry up. 
  • More oil news related to the war in Europe:
  • Australia’s government extended emergency measures allowing it to divert foreign-bound LNG to domestic markets through 2030
  • Greece will spend over $715 million to extend energy subsidies through July. 
  • Japan’s largest power utility is eyeing a takeover of Toshiba’s nuclear business. 
  • Over 40% of U.S. energy sector jobs are now in areas aligned to net-zero goals such as renewables, grid technology and storage. 
  • Renewables provided 49% of power used in Germany in the first half of 2022.
  • A massive new electric vehicle charging station in Oxford, U.K., will begin sending power back to the national grid

Supply Chain

Domestic Markets

No Consistent Home Office Rule in Big Tech Companies

International Markets

  • A spate of COVID-19 flareups in China prompted fresh mass testing in Shanghai, movement curbs in Xian and tightened lockdowns in the eastern province of Anhui. 
  • New COVID-19 cases in South Korea nearly tripled from Monday to Tuesday.
  • Italy reported over 100,000 new COVID-19 cases on Tuesday for the first time since February.
  • COVID-19 cases are on the rise in New Zealand
  • COVID-19 infections doubled last week in Romania, the EU’s least-vaccinated member state. 
  • Canadian officials are considering making COVID-19 booster shots mandatory every nine months for the foreseeable future.
  • More news related to the war in Europe:
    • Ukrainian officials said the nation will need at least $750 billion to rebuild after its war with Russia is over. 
    • Yum Brands, owner of Pizza Hut and KFC, announced plans to exit Russia completely following a smaller pullback in May. 
    • Truck maker AB Volvo is laying off its Russian staff in preparation of a possible exit from the nation. 
    • IKEA will completely shutter operations in Russia this week.
  • The euro fell to its lowest level against the dollar in two decades Tuesday, suppressed by growing fears of a recession caused by energy shortages. Meanwhile, S&P Global’s index of business growth in the euro zone fell to a 16-month low in June. 
  • South Korean consumer prices rose a larger-than-expected 6% in June from a year ago, the fastest pace since 1998. 
  • European lawmakers approved two sweeping pieces of digital regulation Tuesday, setting the stage for legal battles with the world’s largest tech firms. 
  • Mexico’s president submitted a bill to eliminate daylight savings time.  
  • Shareholders of LATAM Airlines, Latin America’s largest air transport group, approved an $8 billion bankruptcy reorganization plan Tuesday. 
  • Another A350 jet order was canceled by Airbus in the plane maker’s escalating dispute with Qatar Airways over surface scars on jets. Airbus’ first-half jet deliveries were on pace with last year
  • South Korea’s LG Energy Solution plans to supply over $760 million worth of batteries to Isuzu Motors as the Japanese automaker ramps up production of electric vehicles. 
  • Lamborghini will spend almost $2 billion developing a hybrid lineup of vehicles by 2024, executives said. 
  • German regulators signaled antitrust concerns will not hinder Volkswagen’s plans to jointly develop autonomous driving technology with Germany’s Bosch. 

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