Good Afternoon,
More COVID-19 news relevant to the plastics industry:
Supply
- After yesterday’s historic drop, expiring May WTI prices returned to positive single-digit territory. The broader market slide continued in early trading today, with the WTI for June delivery down 41% at $11.95 and Brent crude down 28% at $18.31.
- The White House indicated the U.S. may buy up to 75 million bbl of oil for the Strategic Petroleum Reserve.
- Gasoline prices have fallen below $1/gallon in many states.
- Oil services firm Halliburton announced big cost and employment cuts in anticipation of a drop in energy investment.
Supply Chain
- The oil glut has created record demand for Very Large Crude Carriers (VLCCs), where rates had already increased more than five-fold in March.
- Our Gold Standard logistics and transportation partners continue to operate without disruption.
- We have seen some improvement in responsiveness at ports:
Markets
- Several states experiencing slowing infection rates began a gradual reopening of businesses while expanding COVID-19 testing.
- Existing home sales fell 8.5% in March, the biggest monthly drop since 2015. Inventories are at historically low levels as sellers have delisted properties due to the COVID-19 threat.
- The complexity of the automotive supply chain creates daunting challenges as the industry plans a resumption of production.
- Boeing reopened factories in the Seattle area, affecting 27,000 workers who are returning to staggered shifts, face masks and other new safety protocols.
- Court and political battles are brewing between insurance companies and closed businesses seeking business interruption compensation.
International
- The White House said it would block all immigration into the U.S., in part as a job-saving measure, but no details were released.
- China has approached neighboring countries in Asia about easing restrictions on cross-border business travel.
- Colombia extended its quarantine for two more weeks until May 11. At that time, they will reopen selected manufacturing and constructions sites, but will continue to bar international flights through the end of May.
- The Mexican government announced that it has entered “Phase 3” of its COVID-19 epidemic, a period of rapid spread. The country was slower than others in imposing social-distancing restrictions.
Our Operations
- To access 3D printing training, order parts and seek technical assistance, visit our new online resource.
- M. Holland is open for business, deemed essential and will continue to operate at full capacity. We have issued the following status statement:
In accordance with the guidance provided by the U.S. Department of Homeland Security Cybersecurity & Infrastructure Security Agency (CISA), M. Holland Company is considered a member of a critical infrastructure industry and will therefore remain operative. As such, with any necessary accommodations made to ensure the health and safety of our staff and business partners, we will continue to fully perform our normal business operations.
Thank you,
M. Holland Company
We will provide further COVID-19 bulletins as circumstances dictate. For all COVID-19 updates and notices, please refer to the M. Holland website.