MH Daily Bulletin: June 27

June 27, 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 this 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 jumped 3% Friday but declined for the second week in a row over worries that rising interest rates will cause a global recession. 
  • In mid-afternoon trading today, WTI futures were up 1.7% at $109.40/bbl, Brent was up 1.7% at $115.00/bbl, and U.S. natural gas was up 4.3% at $6.49/MMBtu. 
  • Active U.S. oil and gas rigs rose by 13 last week to 753, up 60% from the same time last year for a record 23 months of increases. 
  • U.S. LNG deliveries to Europe are up 75% year over year, while rates for 10-year LNG contracts have risen roughly 75% as importers attempt to lock in prices. 
  • The EPA is considering new air quality labels that critics say would slow oil and gas drilling in parts of the prolific Permian Basin. 
  • Global surplus crude production capacity fell to less than half its 2021 average in May, including an 80% decline in non-OPEC countries: 
EIA estimates show a decrease in global surplus crude oil production capacity in 2022

Supply Chain

The Link Between Soaring Food Prices and Political Instability
  • The U.S. will contribute one-third of the $600 billion that G7 nations aim to raise for infrastructure projects in developing countries over the next five years, a counter to China’s multi-trillion dollar Belt and Road initiative. 

Domestic Markets

  • The U.S. reported 18,551 new COVID-19 infections and five virus fatalities Sunday. 
  • Pfizer’s updated COVID-19 vaccine produced stronger immune responses to Omicron than the current version of its shot, paving the way for potential use by this fall.
  • U.S. consumer sentiment hit a record-low in June even as the outlook for inflation improved slightly, according to a widely followed University of Michigan index. 
United States Michigan Consumer Sentiment
  • The U.S. economy will narrowly avoid recession as it slows this year and next, the International Monetary Fund predicts. 
  • Interest costs on U.S. national debt are 30% higher this year and will likely keep growing due to rising interest rates across the globe. 
  • The four-week average of jobless claims is at its highest level since January, an early sign of cracks emerging in the robust U.S. labor market. 
  • Almost half of 2021’s new entrepreneurs were women compared to just 28% in 2019, a new survey shows. 
  • Companies could save big as more employment prospects signal willingness to take a pay cut in order to work from home
  • The average U.S. mortgage rate has almost doubled since the end of 2021, reaching 5.81% last week, according to Freddie Mac. Meanwhile, monthly mortgage payments on the typical home climbed to $2,031 in May from $1,378 a year earlier, according to Zillow. 
  • New U.S. home sales rose 10.7% from April to May, topping market expectations with large gains in the West (+39.3%) and South (+12.8%). 
United States New Home Sales

International Markets

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