COVID-19 Bulletin: July 8

Good Afternoon,

More COVID-19 news relevant to the plastics industry:

Supply

• Oil prices were steady in early trading today, with the WTI crude price at $40.63 and Brent at $43.14/bbl.
• China, the world’s biggest oil importer, has saturated its storage capacity in taking advantage of low oil prices in recent months.
• Pemex, Mexico’s state-owned oil company, has asked some contractors if it can defer payments until next year.
• While natural gas prices have recovered somewhat from quarter-century lows, further upside could be capped by bloated supplies globally. The price was at $1.853/MBTU in early trading today.
• Sunrun and Vivint Solar, the two largest rooftop solar players in the U.S., will merge as they face a 25% demand drop and a multi-year road to recovery for the industry.   
• Braskem has joined the Polypropylene Recycling Coalition, an initiative of The Recycling Partnership, as a founding member and contributor.

Supply Chain

• Supply chain managers have gained greater visibility and importance as companies shift from “low cost/minimal inventory” supply chain models to “flexibility/resilience” approaches.
• More than 3,200 trucking companies received loans exceeding $150,000 under the Paycheck Protection Program.
• Our Gold Standard logistics and transportation partners continue to operate without disruption.
• Ports are operating normally:

Markets

• New COVID-19 cases in the U.S. topped 60,000 yesterday, a single-day record.
• Infections in Texas surpassed 10,000 yesterday, joining Florida and New York as the only states with more than 10,000 cases in a single day.
• In Ohio, where more than half of the newly infected are under 40 years old, the governor issued a mandatory mask order for 7 counties with rapidly rising COVID-19 infection rates.
• The White House notified the U.N. that it is withdrawing from the World Health Organization (WHO). The exit will take effect on July 6, 2021.
• United Airlines sent notices to 36,000 employees, 45% of its workforce, that they may be furloughed due to the prolonged industry downturn. Flight attendants may be hardest hit, with notices going to 15,000 of the company’s 25,000 attendants.
• WHO acknowledged evidence that COVID-19 could spread through airborne transmission, posing risks of infection beyond 6-foot distancing recommendations.
• A U.K. study of COVID-19 patients adds to growing evidence that the virus can cause damage to the brain, including inflammation, psychosis and delirium.
• The U.S. administered an average of 600,000 tests per day last month, about half of what health experts say is needed to control the virus. The federal government is setting up temporary testing sites in hard-hit Florida, Louisiana and Texas.
• Concerns are growing about another shortage of personal protective equipment at healthcare facilities wrestling with rising COVID-19 infection rates.
• Major U.S. airlines, which already received nearly $25 billion in payroll support through the CARES Act, have signed letters of intent to tap another $25 billion in loans under the act as the recovery in air travel stalls.
• The global automotive industry is diverging into three trajectories of recovery, with China nearing a full recovery, the U.S. sputtering forward and Europe continuing to struggle.
• Automobile dealerships in greater New York report a 38% increase in walk-in leads as people acquire cars for safety and to escape confinement in their city apartments.
• Several healthcare organizations are sponsoring an advertising campaign to encourage reluctant patients to resume medical visits as 56% of clinicians report worsening health conditions among their patients.
• COVID-19 cases in the U.S. topped 3 million today.  

International

• The presidents of Mexico and the U.S. will meet today in Washington to commemorate the new trilateral trade agreement that replaces NAFTA and is known as USMCA in the U.S., CUSMA in Canada, and T-MEC in Mexico. Canada’s president will not attend the meeting due in part to COVID-19 concerns.
• Europe’s border ban on U.S. travelers is severely impacting its tourism industry, where Americans account for nearly 30% of visitors.
• Cases in Africa surpassed 500,000, but WHO warns that the number is widely understated due to a lack of testing and reliable data.
• The Africa Development Bank says the continent’s economy could contract by as much as 3.4% in 2020 with a modest recovery in 2021.
• After surviving hurricanes, earthquakes, drought and a fiscal crisis, Puerto Rico may be confronting its toughest challenge yet as the pandemic curtails the tourism and cruise industries and raises the island’s already high unemployment and poverty levels.

Our Operations

• To access 3D printing training, order parts and seek technical assistance, visit our new online resource.
• Market Expertise: M. Holland offers a host of resources to clients, prospects and suppliers across nine strategic markets. To arrange a videoconference or meeting with any of our Market Managers, please visit our website.
• M. Holland’s official status statement is available here.

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.