COVID-19 Bulletin: April 22

Good Afternoon,

More COVID-19 news relevant to the plastics industry:

Supply

• Oil prices stabilized in early trading today, with the WTI up 27% at $14.66/bbl and Brent crude up 11% at $21.56/bbl.  
• The White House is considering financial aid to oil companies in the form of purchases of stock or reserves.
• The Railroad Commission of Texas, which met yesterday to determine whether to mandate a 20% oil production cut in the state, deferred a decision until May 5.
• Royal Dutch Shell yesterday said it will postpone its Jackdaw natural gas project in the North Sea, its second North Sea project to be canceled in as many months.
• While most headlines focus on Texas, the energy recession is impacting the economies of many other oil-producing states.
• China, the world’s largest oil importer, may not factor significantly in absorbing the global oversupply because of high inventories and the slow pace of its economic recovery.

Supply Chain

• Our Gold Standard logistics and transportation partners continue to operate without disruption.
• We have seen some improvement in responsiveness at ports:

Markets

• The Senate approved a $484 billion economic aid bill that includes $310 billion in additional relief for small businesses under the Paycheck Protection Program (PPP). The House of Representatives and president are expected to approve the measure today.
• The Federal Housing Finance Administration (FHFA) is looking to relax regulations to ease pressure on the mortgage industry as homeowners miss their mortgage payments. Nearly 6% of mortgages are now in forbearance.
• Coca-Cola, a bellwether for the global consumer economy, reported a 25% drop in sales this month due to the shutdown of away-from-home venues and events.
• Lockheed Martin was among the few companies maintaining earnings guidance as demand in the defense industry so far remains largely unaffected by the COVID-19 crisis.
• Medical device maker Medtronic experienced a significant drop in revenues in recent weeks as healthcare facilities have focused on COVID-19 response rather than elective surgeries. The company continues to run at capacity in anticipation of a rebound in demand.
• Tornado damage to a Borg Warner automotive plant in South Carolina is further complicating the restart plans for truck makers Fiat Chrysler Automobile, Ford and Toyota, threatening the rollout schedule for Ford’s updated F-150.
• Some cities have seen up to a 60% reduction in air pollution due to COVID-19 lockdowns.
• The move to remote work has made companies increasingly vulnerable to cyberattacks, leading to a more than doubling of malware incidents in March.

International

• Mexico’s central bank lowered interest rates and announced other measures to stabilize markets, while the federal government remains reluctant to pursue fiscal measures to combat an expected 8% contraction of the country’s economy this year. The peso has come under mounting pressure due to the COVID-19 crisis and the oil recession.
• Chevron, the last large U.S. oil company doing business in Venezuela, was ordered to cease operations there by December 1 by the White House, which is pressuring for regime change in the country.

Our Operations

• Today marks the 50th anniversary of Earth Day, which we are commemorating through social media and our website.
• 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.