COVID-19 Bulletin: October 15

Good Afternoon,

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Supply

• Crude prices fell in early trading, with the WTI price down 3.5% at $39.59/bbl and Brent down 3.3% at $41.89/bbl. Natural gas was 4.3% higher at $2.75/MMBtu.
• Gulf Coast ethane capacity increased 41% over the past five years while profit margins shrank an estimated 75%, according to S&P Global Platts, prompting the postponement of many projects by major petrochemical companies.
• With oil prices down 35% this year and gas prices 25% higher, U.S. producers have lost their ethane advantage in the global plastics market.
• Gulf Coast petrochemical companies are eyeing opportunities to sell more hydrogen.
• The U.S. Department of Energy recently announced a five-year, $100 million plan to phase out diesel from the long-haul transportation market in favor of hydrogen-powered vehicles.
• Waste Management plans to power 50% of its alternative fuel vehicles with natural gas by 2025.
• Methane hotspots globally have jumped 32% this year, despite the economic slowdown.
• The European Union is considering binding standards for methane emissions, the second largest contributor to global warming, in pursuit of its carbon neutrality goals.
• Loop Industries’ stock price fell by nearly a third yesterday as a short seller accused the company of falsifying information related to its PET recycling technology.

Supply Chain

• The CEO of the nation’s second-largest truckload carrier predicts higher truckload rates well into 2021.
• International logistics company DSV is building a 1,000,000+ square-foot distribution center in Southern Dallas County, a booming area for industrial projects.
• Many nations are stockpiling food out of concern for a worsening pandemic, moving from a “just in time” to a “just in case” supply chain posture and exacerbating food price inflation.
• Medical supply chain challenges are conflicting with a surge in telemedicine in a clash of disruptions caused by the pandemic. 
• With tight freight capacity nationwide and supply constraints with many plastic resins, clients are advised to provide expanded lead times on orders to help ensure delivery dates. 

Markets

• New COVID-19 cases in the U.S. approached 60,000 yesterday, the highest since August.
• Forty-six states now have higher infection rates than a month ago as COVID-19 spread gains momentum across the country.
• In the past seven days, North Dakota, South Dakota, Montana, Wisconsin and Utah have had the highest cases per capita of COVID-19.
• YouTube announced it will remove all content about COVID-19 vaccines that is not in line with the consensus among health officials or the World Health Organization.
• Recent studies suggest the pandemic may have contributed to a drop in premature births, with expectant mothers experiencing less stress, cleaner air and better hygiene.
• Day care centers pose little risk for transmitting COVID-19, a new study of 57,000 U.S. child-care providers says.
• First-year undergraduate enrollment fell 16% this year, and overall enrollment is down 4%, aggravating a budget crisis at many schools and posing risks for the long-term economy.
• Brigham Young University warned of suspension or expulsion for students who try to contract COVID-19 intentionally in order to snag higher prices paid by local plasma centers for antibody-filled blood.
• First-time jobless claims last week jumped to 898,000, well above analyst estimates.
• Applications for federal employer ID numbers were up 82% in the third quarter from the prior year as displaced workers transition to entrepreneurship. 
• A quarter of low-income workers on government assistance face a tax rate of 70% on their earned wages under the income tax code, posing a disincentive to work and possibly perpetuating a cycle of poverty.
• Further economic stimulus is unlikely to come before the November 3 election. Congress and the White House agree on more $1,200 stimulus checks but disagree on other major issues.
• Two recent studies calculate that 6 to 8 million people have joined the poverty rolls in the U.S. since stimulus programs expired. 
• Forty-three of the nation’s 345 large cap public companies reported cumulative losses in the past 12 months, the most ever.
• More than 100 workers at Wells Fargo were fired, and many more at JPMorgan Chase singled out, for lying in order to collect COVID-19 relief funds themselves.
• Amazon is expected to post record numbers of e-commerce sales during its two-day “Amazon Prime Days,” which ended Wednesday.
• Despite an 81% drop in revenues per available room this year, Hilton Worldwide is renovating some luxury hotels with expectations that winter will bring a surge in pent up demand.
• After 208 days, Hawaii reopens for tourism today, but the mood in the state remains gloomy as 1 in 6 jobs have disappeared and the economy lags every other state in the union.
• With COVID-19 spreading and colder weather on the way, air filters have become the new toilet paper as vendors struggle to meet demand.
• Subsidized elder care, paid time off for volunteering, treadmill desks and wellness rooms are among new benefits offered by companies to retain employees who are reconsidering the career rat race as they deal with the pandemic and work-from-home pressures.
• Some CEOs are reversing their opinion on the prolific use of online videoconferences, saying the technology negatively affects creativity and productivity.
• By 2025, Johnson & Johnson plans to use 100% recyclable, reusable or compostable plastic packaging and certified/post-consumer recycled paper and pulp-based packaging. The transition will cost $800 million.
• Panera Bread, the first national chain to put calorie counts on its menu, will again be the first national chain to label meals climate friendly. A “Cool Food Meal” will have a carbon footprint of less than 5.38 kilograms of CO2, according to the company.
• Alabama football coach Nick Saban tested positive for COVID-19.

International

• Canada said it will extend the closure of its southern border until U.S. COVID-19 infections rates are under control.  
• Europe has averaged more than 100,000 COVID-19 infections per day over the past week, accounting for one-third of new cases worldwide. Lockdowns and restrictions across the continent are increasing, including a state of emergency announced Wednesday in France.
• France imposed a 6:00 a.m. to 9:00 p.m. curfew in Paris, requiring citizens to remain in their homes to counter a spike in COVID-19 cases.
• Italy, which had experienced a more subdued second wave of COVID-19 than neighboring countries, recorded record new infections yesterday.
• With infection rates approaching 100 per 100,000, London is expected to impose stricter social distancing measures, including a ban on indoor meetings between two families. Wales will close borders to travelers from U.K. hotspots beginning tomorrow, and Northern Ireland is reclosing schools and imposing new restrictions for bars and restaurants starting Monday.
• In the first half of 2020, commercial real estate loans in the U.K. declined 34% from a year earlier.
• Indonesia, Southeast Asia’s largest economy, today overtook the Philippines with the highest number of infections in the region.
• The pandemic has reversed Southeast Asia’s economic boom of the past decade; the region has lost the equivalent of 48 million full-time jobs, and millions of middle class families are sinking into poverty.
• Malaysian glove manufacturer Top Glove may soon become the country’s most valuable company, and glove manufacturers are expected to overtake gaming as the largest component of the Malaysian stock index.
• GDP in Kenya shrank 5.7% in the latest quarter, the country’s first economic contraction in 17 years.
• Businesses and workers in Israel are straining under the country’s economic lockdown, one of the few second lockdowns imposed around the globe.
• The economic collapse in Central America is driving more people north in search of jobs. In September, migrant arrests along the U.S.-Mexico border increased to their highest level in 13 months.
• Fiat Chrysler Automobiles reached a tentative agreement with the UAW in Canada, averting a strike there.

Our Operations

• Last week’s webinar sponsored by M. Holland and Braskem reviewed polypropylene advancements in 3D printing. Watch the recording here.
• Stop by M. Holland’s virtual booth at IWCS to meet our team of Wire & Cable experts. The M. Holland team is exhibiting October 15-16 from 8 am to 1 pm ET. Click here to learn more.
• Global Healthcare Manager Josh Blackmore will be a featured speaker at the Plastics in Healthcare Virtual Edition, sponsored by Plastics News, October 26-30. The title of his talk: Applying the Lessons from the First Wave of COVID-19 to Successfully Navigate the Second. 
• 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.

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.