COVID-19 Bulletin: March 19

Good Afternoon,

Supply

Oil prices (WTI) improved early today after falling to $20.37 a barrel yesterday, the lowest since early 2002 following the 9/11 attacks on the World Trade Center.
Oil storage facilities are quickly filling in the face of reduced demand and the Russia/Saudi price war, portending a further drop in prices in coming weeks.
PE producers continue to report strong demand and stable prices for Prime PE.
All PE plants continue to be operational and running full out.
Suppliers suspect the demand surge is temporary amid concerns about fallout based on a long-term global downturn.
PP producers are expressing concern about automotive plant shutdowns.
PP demand remains strong; however, pricing is expected to erode based on monomer ties to oil.
All PP plants continue to be operational and running full out.

Supply Chain

Port of Houston’s Barbours Cut and Bayport Container terminals are closed until further notice after a worker was infected with COVID-19. Officials hope to reopen by Monday.
Our Gold Standard Distribution Partners report no disruptions of operations due to COVID-19.
Port congestion and associated container availability continue to cause delays in international shipments, both imports and exports.

Markets

Ford, GM, Nissan, Toyota and Honda are closing down U.S. production starting this week and next; traffic is stalled at car dealerships; Ford has suspended its dividend to preserve cash. FCA is reducing shifts.
Tesla’s Fremont, CA, facility has reduced its workforce.
VW will close European plants for 2-3 weeks.
J.D. Powers projects a production drop of as many as three million vehicles this year due to COVID-19.
Some Healthcare specifiers and molders are overwhelmed with surging demand and maintaining safe operations. There is an intensifying shortage of ventilators in the U.S.
Demand for single-use bags and PS foam containers has spiked as restaurants convert to takeout-only status.
Lawmakers in Maine suspended a ban on single-use plastic bags, deeming them safer than reusable bags in the face of COVID-19. Other states are considering similar bag-ban suspensions.
Retail sales were off 20% last week and 36% on Sunday from the prior week.
Unemployment claims are soaring in states most impacted by the virus; claims in Pennsylvania yesterday were six times the daily average.
The Senate passed a relief bill that includes supplemented sick leave for Coronavirus victims working for companies with fewer than 500 employees; employers are required to pay the sick leave and then seek reimbursement from the federal government. Employers with fewer than 50 employees can seek exemption.
In Ohio, businesses are being asked to take the temperature of all employees daily.
The State Department suspended visa services in most countries.
A broad coalition of business organizations were rebuffed after pressing the White House to ease tariffs to provide relief to struggling industries.

International

The White House planned to close the border with Mexico after the country’s President hesitated to take aggressive steps to contain COVID-19 out of concern for the economy.
Colombia declared a State of Emergency and social distancing restrictions.

Our Operations

We are collaborating with Automotive clients and suppliers to adjust for plant closures and weakening demand.
Our 3D Printing lab remains operational and is printing parts for clients.
Ed Holland shared an optimistic perspective with Mployees.

Thank you,