MH Daily Bulletin: May 13

May 13, 2022 • Posted in Daily Bulletin

News relevant to the plastics industry:

At M. Holland

  • The Plastics Industry Association is hosting the Re|focus Sustainability & Recycling Summit in Cincinnati, Ohio, on May Lindy Holland-Resnick, Market Manager for Packaging at M. Holland, is presenting during the upcoming Re|focus Sustainability & Recycling Summit in Cincinnati, Ohio. Her session on Developing a Sustainably Minded Staff will cover how to create a holistically sustainable company from top to bottom. If you’re attending Re|focus, don’t miss Lindy’s session on Tuesday, May 24 at 11:15 am ET.
  • M. Holland is excited to be the Headline Sponsor for the upcoming Injection Molding & Design Expo in Detroit! This two-day trade show will highlight the latest technologies, materials, equipment and opportunities in injection molding. The event is May 25-26 and admission is free. Click here to learn more.
  • If you’re attending the Injection Molding & Design Expo in Detroit, check out M. Holland’s speakers during the show:
    • Haleyanne Freedman, M. Holland’s 3D Printing Market Manager, will be discussing Open Platform Adoption in Additive Manufacturing. Don’t miss her presentation in the Designing the Future Theater on Wednesday, May 25 at 4:00 pm ET.
    • Josh Blackmore, M. Holland’s Global Healthcare Manager, is facilitating a training seminar on Understanding Material Selection for Medical Devices, from Qualification to Approval. Mark your schedules for this session in the Training and Development Theater on Thursday, May 26 at 9:15 am ET.

Supply

Supply Chain

  • New Mexico’s Calf Canyon fire, the nation’s largest, expanded to 260,000 acres Thursday with just 29% containment, prompting more evacuations
  • Almost 64% of the continental U.S. has seen drought conditions since September 2020, one of the longest stretches on record. 
Persistent Drought Affects More Than Half of U.S.
  • U.S. diesel prices hit an all-time high for the 14th consecutive day, reaching $5.56 a gallon. The sharp price spike the past two months is severely impacting the U.S. trucking market, especially lightly-capitalized smaller fleets. 
  • The U.S. trucking sector added 13,000 jobs in April after payrolls fell by 3,400 the previous month. 
  • Global air cargo volumes fell 8% in April from a year ago, with rates 145% above 2019 levels. 
  • Roughly two-thirds of U.S. and European manufacturers say they will bring some Asian production home by 2025, according to a survey by BCI Global. 
  • Samsung is negotiating to raise chip prices by up to 20% this year, consistent with similar efforts by rivals TSMC and United Microelectronics. 
  • Foxconn, the world’s biggest iPhone assembler, warned it could lose up to $8 billion in sales from Chinese lockdowns this quarter. 
  • Some U.S. hospitals are rationing medical imaging after a GE Healthcare factory was temporarily shuttered by Chinese lockdowns. 
  • Supply-chain tech firms raised over $62 billion in venture funding last year, more than twice the amount in 2019. 
  • Global demand for metals will surge for decades as the world transitions to battery-intensive renewables, the World Bank predicts. 
  • In the latest news from quarterly earnings season:
    • Hapag-Lloyd reported “extraordinarily strong” financials, with group profit jumping over 300% from the same time last year to $4.7 billion
    • India’s Tata Motors, parent for Jaguar Land Rover, posted a surprise $133 million loss and said higher input costs will lead to price increases. 
    • Electric heavy-duty truck maker Nikola posted its first positive quarterly gross profit of $431,000
    • Connecticut-based GXO Logistics saw profit rise 45% to $38 million on a 14% gain in revenue. 
    • The U.S. Postal Service lost $1.7 billion despite rising revenue and volume. 
  • U.S. maritime regulators want the three major container shipping alliances to report more detailed information on pricing and capacity
  • China National Offshore Oil Company ordered 12 new LNG tankers for $2.4 billion
  • Russia’s Sovcomflot, among the world’s largest tanker operators, sold about a dozen ships to buyers in Asia and the Middle East as it works to repay loans. 
  • South Korean shipyard workers are protesting efforts to bring in foreign workers to cope with labor shortages. 
  • XPO Logistics tanker drivers in Britain called off a threatened strike after getting a 27% pay increase. 
  • Swedish electric vehicle maker Volta Trucks plans to launch commercial vehicles in North America by the end of 2023. 

Domestic Markets

International Markets

  • Global COVID-19 cases fell 12% and fatalities fell 25% last week, with only the Americas and Africa seeing increases. 
  • Europe surpassed 2 million COVID-19 fatalities yesterday. 
  • Daily COVID-19 infections in South Africa hit 10,000 for the first time since January this week.
  • Beijing effectively blocked off some parts of its central business district after new COVID-19 cases rose by nine Wednesday. 
  • New COVID-19 infections in Shanghai fell for the 19th day in a row to 1,449, as authorities set May 20 as an apparent end-date for lockdowns. 
  • The U.S. administration licensed a key vaccine technology to the World Health Organization, potentially allowing global manufacturers to develop their own COVID-19 shots. 
  • Generic drugmakers will begin selling versions of Pfizer’s popular COVID-19 antiviral pill for less than $25 in low- and middle-income countries. 
  • More news related to the war in Europe:
    • Siemens AG is ending its 170-year-old business in Russia. 
    • The Ukrainian refugee toll surpassed 6 million people yesterday, while 14 million have been forced from their homes. 
  • New bank lending in China fell to its lowest level since 2017 last month as lockdowns continue to dampen the economy.  
  • A major Chinese property developer missed a dollar-denominated debt payment. China’s beleaguered property sector saw 17 defaults on international bonds last year.  
  • The Conference Board lowered its projections for global GDP growth for this year and next:
Downgrades to Global Economic Outlook (GEO)
  • Britain’s economy grew just 0.8% in the first quarter, the slowest in a year. 
  • Mexico’s central bank raised its benchmark policy rate by another 50 basis points to 7% yesterday, the eighth consecutive hike and the highest borrowing costs since February 2020: 
Mexico Interest Rate

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