MH Daily Bulletin: June 24

June 24, 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

  • Oil prices fell 1.5% Thursday on indications that the U.S. Federal Reserve will keep an aggressive stance on raising interest rates.
  • In mid-morning trading today, WTI futures were up 3.8% at $108.30/bbl, Brent was up 3.2% at $113.50/bbl, and U.S. natural gas was up 0.5% at $6.27/MMBtu.
  • The average U.S. gasoline price fell to $4.94 a gallon Thursday, about 10 cents off the recent peak.
  • Major oil refiners emerged from a Thursday meeting with the U.S. administration with no concrete solutions to lower gasoline prices, although the two sides agreed to work together. 
  • Kentucky’s governor declared a state of emergency yesterday to activate price-gouging laws in an effort to bring down record gasoline prices. 
  • A measure of business activity for energy firms operating in Texas, northern Louisiana and southern New Mexico jumped in the second quarter to the highest level in six years, according to the Dallas Fed. 
  • The most closely watched oil data in the world — the U.S. government’s weekly Petroleum Status Report — won’t be released this week due to system issues stemming from a power problem, officials said. 
  • The White House announced a new partnership with 11 states to quicken the development of offshore wind farms on the East Coast.  
  • Labor shortages are delaying Georgia’s efforts to finish constructing the U.S.’s first new nuclear reactors in over three decades
  • The fire at Freeport LNG’s Gulf Coast export facility reduced total U.S. LNG export capacity by roughly 17%, the government predicts: 
Fire causes shutdown of Freeport liquefied natural gas export terminal
  • More oil news related to the war in Europe:
  • OPEC will likely stick to a plan for accelerated oil output increases in August as Western nations continue pressuring the group to address global energy shortages. 
  • Ethanol prices are up 14% this year, boosted by the U.S. administration’s mandate to blend more of the biofuel into gasoline. 
  • Some G7 nations will ask to ease biofuel mandates when they meet this Sunday, a bid to free up supplies of grain and vegetable oil for use in the global food market. 
  • British gasoline and diesel prices hit a record high Thursday. 
  • Construction will begin in 2024 on the $30 billion Sun Cable project that aims to export solar power from Australia’s Outback to Singapore. 
  • A decrepit oil supertanker laden with 1.1 million barrels has been rusting in anchorage off Yemen’s coast for almost a decade, threatening severe environmental impacts. 

Supply Chain

  • California’s Lake Oroville, which provides water to 27 million people in the state, is only half full, its peak depth of this year but still near historic lows. 
  • Texas’ power grid may need to tap into reserves as power demand continues to topple daily records amid a lingering heat wave.  
  • Italy is facing a water crisis as the worst drought in decades spreads rapidly through the country. 
  • Strikes crippled Britain’s rail network for a second day this week with only 1 in 5 train services operating. 
  • Workers at Chile’s state-owned mining firm Codelco, the world’s largest copper producer, agreed to end a national strike Thursday, sending copper prices to a 16-month low:
Copper2022
  • Boeing says labor shortages at mid-tier and smaller suppliers will disrupt supply chains well into 2023.
  • FedEx’s per-package revenue jumped 11% in the latest quarter after the firm increased fuel surcharges, culled unattractive shipments and saw labor costs stabilize.
  • Samsung Heavy Industries received the largest shipbuilding order in South Korean history, a nearly $3 billion deal to supply 12 LNG carriers to an undisclosed buyer. 
  • Abercrombie & Fitch’s first-quarter freight costs were $15 million higher than expected due to rising rates and supply chain disruptions. 
  • Zipline, a U.S. drone delivery firm, received FAA certification yesterday to operate as a small air carrier, allowing it to ship healthcare products from its North Carolina headquarters. 
  • Sweden’s Einride, which builds electric self-driving trucks with no space for a driver or passengers, will begin testing vehicles on Tennessee roads in the third quarter. 
  • Intel delayed the groundbreaking ceremony of a massive chip-making facility in Ohio as Congress stalls over approving billions in funding for the industry. 
  • Saddled with heavy debts from the pandemic and supply chain issues, a key Japanese supplier for automakers Nissan and Stellantis is heading for a court-led rehabilitation path after failing a process that allows companies under financial strain to continue operating while renegotiating debt.
  • Warehouse giant Prologis plans to reach net-zero emissions across its supply chain by 2040
  • EU lawmakers voted to include shipping in the bloc’s updated carbon market, adding pressure for the industry to quicken its decarbonization efforts. 

Domestic Markets

International Travel Tipped to Bounce Back in 2022

International Markets

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