Good Afternoon,
More COVID-19 news that is relevant to the plastics industry:
Supply
- Oil prices fell more than 4% to 18-year lows, with the WTI dipping briefly below $20
- Travel restrictions due to COVID-19 could reduce April fuel consumption by 40% from seasonal norms.
- The EPA is delaying the switchover from winter fuels to cleaner summer fuels until May 20 to allow refiners and wholesalers additional time to work off a backlog of winter blends.
Supply Chain
- PE and PP prices continue to fall in international markets.
- Domestic shipments remain steady due to a spike in demand for medical and essential products; export demand is softening as plants making non-essential products shut down globally.
- COVID-19 is expected to drive more examination of companies’ Environmental, Safety and Governance (ESG) preparedness.
- We’ve seen no changes in the status of ports:
Markets
- U.S. federal social distancing guidelines were extended to April 30.
- The Organization for Economic Cooperation and Development (OECD) estimates that COVID-19 will curtail output in developed countries by 20-25%, resulting in negative 6% GDP on an annualized basis if economic restrictions can be lifted in three months.
- Canada’s central bank cut interest rates by 50 basis points to .25% on Friday and announced it will purchase assets in the open market to support the financial system.
- The Securities and Exchange Commission (SEC) is giving companies an additional 45 days to make mandatory disclosures as companies struggle to assess the financial consequences and developing risks caused by COVID-19.
- As financial stress grows, banks are tightening lending standards for small businesses and individuals.
- The White House invoked the Defense Production Act to force GM to produce ventilators after the company already committed to make ventilators and medical safety gear.
- LMC Automotive forecasts that U.S. automobile sales will fall 17% to 14.3 million units.
- The Detroit Auto Show was cancelled after FEMA designated TCF Center (formerly Cobo Center) as a field hospital.
- GM has postponed some 2020 model launches until next year.
- Some medical manufacturers, struggling to allocate scarce supplies, are seeking government guidance in distributing products.
- A surge in demand for laptop computers and other electronic equipment to support work- and study-at-home mandates is colliding with supply chain disruptions to create shortages in stores and long lead times online.
International
- COVID-19 is straining the European Union, with divisions surfacing about sharing the financial cost and medical resources among EU member countries.
- Starting today, Russia is closing its borders.
- As COVID-19 spreads in Latin America, Brazil’s President said the country will prioritize the economy above fighting the illness.
Our Operations
- Most of our clients surveyed remain in operation.
- Our 3D Printing team reports that demand for filament has surged. The team is collaborating with its network of partners and clients to make needed safety gear for smaller health centers.
- 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.