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 will be closed Monday in observance of the July Fourth holiday. We wish all subscribers a safe and happy holiday weekend.
Supply
Oil prices slid about 2% Wednesday on news of a larger-than-expected rise in U.S. gasoline and distillate inventories, pointing to lower demand.
In mid-morning trading today, WTI futures were down 3.8% at $105.60/bbl, Brent was down 1.7% at $114.50/bbl, and U.S. natural gas was down 6.6% at $6.07/MMBtu.
The U.S. administration said crude inventories fell last week even as production hit its highest level since April 2020, with U.S. refiners operating at about 95% of capacity. Government data shows refinery capacity has declined for two years in a row:
U.S. crude exports from the Gulf Coast are projected to hit an all-time high in the current quarter, according to Rystad:
British natural gas futures skyrocketed almost 50% Wednesday on news that Norway, the nation’s biggest supplier, reduced capacity at a major field due to a compressor failure.
Exxon Mobil will sell its Canadian shale gas business for roughly $1.5 billion, a retreat from regions rich in gas but lacking in pipelines and other infrastructure.
Uncertainty in global oil and gas markets could stay “for some time to come” as spare capacity is very low while demand continues recovering, Shell’s chief executive said.
More oil news related to the war in Europe:
Germany is in talks to bail out energy giant Uniper SE to stem a broader fallout from Russia’s slashed natural gas deliveries.
California utility PG&E is asking the federal government to give it more time to apply for the funds that would allow it to continue operating its California nuclear plant.
Global offshore wind added 21.1 GW of capacity last year, a record, although the International Energy Agency warns it is off track of current net-zero targets.
China is hoping regulatory changes will reduce industrial energy consumption per unit of output by 13.5% in 2025.
Supply Chain
Power grids in the western half of the U.S. could face reliability issues this summer due to more frequent extreme weather events and record demand, agencies warn.
Under-construction refrigerated warehouse space in the current quarter is 1,000% greater than the same time in 2019, a signal that developers believe e-commerce will permanently shape the way Americans buy groceries and meals.
The American Trucking Association’s for-hire truck tonnage index hit 117.1 in May, up 3.7% from the same time last year.
Industrial baked-goods supplier Gold Standard Baking is preparing to sell itself out of bankruptcy after succumbing to high labor and material costs.
Walgreen’s chief supply chain officer says the retailer will rely more on micro-fulfillment centers, drones and other strategies to reach customers faster.
The cost to build a production stage is up about 15% from last year, forcing film and television studios to cut back on spending.
Domestic Markets
The U.S. reported 193,201 new COVID-19 infections and 710 virus fatalities Wednesday.
The seven-day average COVID-19 infection rate is at its highest level in six weeks, while the daily average for hospitalizations is up 9% and for deaths is up 18% from two weeks ago.
COVID-19 positivity rates in New York City are back up to January levels, raising fears of a sixth virus wave.
Consumer spending eased 0.4% in May, the first decline of the year, while a key measure of consumer price inflation rose a less-than-expected 0.3%.
U.S. consumer outlays rose just 1.8% in the first quarter, the softest spending rate of the pandemic recovery.
U.S. corporate profits fell 4.9% to $2.4 trillion in the first quarter following a modest gain in the previous period.
The S&P 500 is down 20% year-to-date this week as it heads for its worst first-half since 1970.
The U.S. dollar is hovering near a 20-year high compared to a basket of other currencies, benefiting from safe-haven demand amid fears of a global recession:
The number of active U.S. home listings jumped 18.7% in June from a year ago, the largest annual increase since 2017, according to Realtor.com.
U.S. mortgage refinancings saw a jump last week after the average interest rate fell for the first time in four weeks to 5.84%. Homebuyer demand, on the other hand, was flat.
General Mills posted an 8% increase in sales for the quarter ended May 29 despite declining volumes in every segment except for its pet-products business.
Spice-and-flavorings company McCormick & Co. posted a 34% drop in quarterly profits after costs rose quicker than expected.
Bed Bath & Beyond’s quarterly sales fell 25% from a year ago while its net loss widened, prompting the board to replace its CEO.
The U.S administration says it has immobilized over $300 billion in Russian central bank funds so far.
Russia’s stock market plunged 8% Wednesday to a two-month low after Gazprom said it would halt dividend payments. The nation’s overall economy contracted 4.3% in May, new figures show.
Chinese manufacturing activity rose this month for the first time since February, according to an official index.
Japan’s factory output fell 7.2% in May, the largest monthly drop in two years amid continuing supply issues.
Industrial production in South Korea jumped 7.3% in May from a year ago, double economist expectations.
An index of Euro Area consumer confidence fell to -23.6 in June, the lowest since the beginning of the pandemic even as the region’s unemployment rate fell to a fresh record-low.
In Germany, the unemployment rate hit a record-low 2.8% in May.
Spain’s annual inflation rate jumped to a higher-than-expected 10.2% in June, the fastest pace in almost 40 years.
Toyota’s production fell almost 10% below targets this year and was down 5.3% from last year between January and May.
British car production rose 13.3% year over year in May, the first rise in 11 months but still almost 50% below pre-pandemic levels.
Stellantis is warning that the EU’s plan to phase out combustible-engine cars by 2035 could cause the auto market to collapse if soaring prices for electric vehicles are not reduced by then.
Retail car sales in China jumped 28% last week compared to the same time a year ago, an industry group said.
Ford will spend over $200 million helping build a new lithium plant for Australia’s Liontown Resources in exchange for five years of supplies of the key battery metal.
Hyundai is pushing back the rollout of its first hydrogen vehicle to at least 2024 due to issues with fuel cell development.
We and selected third-parties use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL third-party cookies. For more details about cookies and how we use them, read the full Data Privacy Policy.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience. For more details about cookies and how we use them, read the full Data Privacy Policy.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-advertisement
1 year
Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Cookie
Duration
Description
__cf_bm
30 minutes
This cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
bcookie
1 year
LinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie
1 year
LinkedIn sets this cookie to store performed actions on the website.
lang
session
LinkedIn sets this cookie to remember a user's language setting.
lidc
1 day
LinkedIn sets the lidc cookie to facilitate data center selection.
UserMatchHistory
1 month
LinkedIn sets this cookie for LinkedIn Ads ID syncing.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Cookie
Duration
Description
_ga
2 years
The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_ga_S6SF7JZ2WY
2 years
This cookie is installed by Google Analytics.
_gat_UA-7828007-1
1 minute
A variation of the _gat cookie set by Google Analytics and Google Tag Manager to allow website owners to track visitor behaviour and measure site performance. The pattern element in the name contains the unique identity number of the account or website it relates to.
_gcl_au
3 months
Provided by Google Tag Manager to experiment advertisement efficiency of websites using their services.
_gid
1 day
Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT
2 years
YouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid
2 years
Vimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Cookie
Duration
Description
_fbp
3 months
This cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr
3 months
Facebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
IDE
1 year 24 days
Google DoubleClick IDE cookies are used to store information about how the user uses the website to present them with relevant ads and according to the user profile.
personalization_id
2 years
Twitter sets this cookie to integrate and share features for social media and also store information about how the user uses the website, for tracking and targeting.
test_cookie
15 minutes
The test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE
5 months 27 days
A cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSC
session
YSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devices
never
YouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-id
never
YouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextId
never
This cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requests
never
This cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.