MH Daily Bulletin: June 21

June 21, 2022 • Posted in Daily Bulletin

News relevant to the plastics industry:

At M. Holland

  • M. Holland will be charging a fee to recover the reinstated Superfund Excise Tax for applicable U.S. orders starting July 1, 2022. Clients will be notified of details next week. Learn more about the tax in this Plastics News article.
  • M. Holland is sponsoring AMI’s Polymers in Cables on June 28-29 in Philadelphia, Pennsylvania. This conference covers the latest technical developments, manufacturing solutions and trends in the wire and cable industry. M. Holland is also hosting the event’s networking reception on June 28 at 5:30 pm ET!
  • If you’re attending AMI’s Polymers in Cables in Philadelphia, mark your schedule for M. Holland’s technical session:

Supply

  • Brent futures rose 0.9% in a volatile trading Monday, while WTI rose half-a-percent in subdued trading due to the Juneteenth holiday. 
  • In mid-day trading today, WTI futures were up 1.4% at $111.10/bbl, Brent was up 0.8% at $115.10/bbl, and U.S. natural gas was down 1.2% at $6.86/MMBtu. 
  • Weekly U.S. crude output is back to pre-pandemic levels as the nation’s active rig count slowly grows. 
  • The average U.S. gasoline price fell slightly for a second day on Monday to $4.98 a gallon but will likely rise heading into the Fourth of July weekend. The White House continues to weigh pausing the 18.4-cent federal gas tax to bring down prices, which could take effect before the holiday. 
  • Venture Global LNG struck the first binding deal by a U.S. natural-gas exporter to supply a German energy company starting in 2026.
  • As American refiners deal with tightening supplies of blendstocks to make premium gasoline, flows from Asia to the U.S hit the highest level in three months
  • Liquid fuels production in Brazil, Canada and China will rise this year and next, while the U.S. will provide the bulk of overall growth in non-OPEC petroleum production: 
EIA forecasts growing liquid fuels production in Brazil, Canada, and China through 2023

Supply Chain

Domestic Markets

  • The U.S. reported 50,980 new COVID-19 infections and 80 virus fatalities Monday. 
  • With most Americans now carrying some immunity to COVID-19, fatality rates have remained well below previous levels despite a recent rise in springtime cases. 
  • New COVID-19 cases in Florida appear to be plateauing from a recent surge, while virus hospitalizations jumped 13% last week. 
  • Almost 3% of the U.S. public-school workforce exited the profession since the beginning of the pandemic, with survey results showing many more teachers and staff are planning the move this summer. 
  • The president of the St. Louis Federal Reserve said the economy still appears on track to grow this year despite rising expectations of a slowdown caused by high inflation. 
Inflation Is Americans' Top Concern

International Markets

  • COVID-19 hospitalizations are rising in the U.K., with the increase attributed to the fast-spreading BA.4 and BA.5 subvariants of Omicron that appear to do extra damage to the lungs. 
  • China appears to have succeeded in its COVID-zero efforts for the time being, with just three cases reported in Beijing and two cases reported in Shanghai Monday. 
  • Macau, the world’s biggest gambling hub and a special administrative region of China, began mass testing residents after dozens of COVID-19 cases were reported over the weekend. 
  • Israel saw over 10,000 COVID-19 cases in a single day for the first time since early April. 
  • Japan will reopen three more regional airports for international flights in July amid a further easing of travel restrictions. 
  • More news related to the war in Europe:
    • Ukrainian refugees could boost the euro area’s active labor force by up to 1.3 million people, slightly easing labor market tightness, the European Central Bank predicts. 
    • The ruble surged to a seven-year high yesterday as the divide grows between its valuation and the nation’s export competitiveness and financial health. 
    • Some companies, such as Phillip Morris, are finding it difficult to exit Russia due to shifting regulations, fears of arrest and the risk of expropriation. So far, global companies have incurred an estimated $59 billion in losses from their Russian operations.  
  • Over 80% of Britons expect the nation to fall into recession within a year ahead of May inflation data set to be released this week. 
  • Unemployment in China hit a nine-year high in May after strict COVID-19 lockdowns halted large swaths of the nation’s economy. 
  • While homegrown inflation in Asia is behind the world average in some places, global market pressures induced several countries to hike benchmark rates in recent months: 
Where Asian Central Banks Have Hiked Interest Rates

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