Epoxy
August 31, 2021
Shortages and Surfers
Surfers, Swimmers, Boaters Run Into Summer-Disrupting Fiberglass Shortage
By Brett Haensel August 30, 2021, 11:25 AM EDT
- Shortage of fiberglass affects outdoor recreation industry
- Producers, consumers face longer wait times, steeper prices
Swimming-pool construction has slowed to a crawl. Surfboard manufacturers are disappointing customers who dream of hanging 10. Waiting lists for new boats stretch on for months. There’s a common culprit: fiberglass.
The glittery, lightweight material goes into so many common outdoor products that it’s hard to imagine summertime without it. The supply-chain snarls show how broader forces in international trade, supply and demand have rippled through industries in the past year, leading to higher prices and slowing commerce.
Fiberglass is made by extruding glass into strands measured in microns that are then combined and woven in various ways. Some pool manufacturers use fiberglass exclusively. Most surfboards include a foam core wrapped in fiberglass and resin, and the hulls of most modern boats also are built with those composite materials. It’s used in car parts and recreational vehicles, among other things.
But manufacturing has been hobbled by a shortage of fiberglass cloth and liquid vinyl ester resin, which have gotten scarce and expensive. Some retailers are turning away paying customers, many of whom turned to outdoor recreation to cope with the pandemic.
“It’s very, very painful to have to tell people that they can’t run their businesses because you can’t give them raw materials, nor can you refer them to anybody else that can,” said Kent Wooldridge, president of the United Marine Manufacturers Association, a group that assists independent boat and pool builders. If anyone has raw materials, he said, “they charge outlandish amounts.”
With so many industries hungry for composites, suppliers have been overwhelmed. New tariffs and damage to resin-producing chemical plants caused by winter storms in Texas were “catastrophes,” said Duke Aipa, president of board manufacturer Aipa Surf Co.
Trade Tit-For-Tat
The U.S. produces just a fraction of the world’s fiberglass cloth and has grown reliant on cheap supplies from China. But the trade was snagged by the Trump administration’s hard line trade policy. In 2018, the U.S. imposed a 25% tariff on imported fiberglass cloth and resin.
In response, Chinese manufacturers diverted supply to their domestic market and increased export prices. The nation already had begun to prioritize materials for strategic use such as electricity-generating windmills — which require fiberglass for turbine blades.
The pandemic last year further exacerbated supply-chain challenges when Chinese fiberglass plants were shut down and global demand took off for recreational products.
“We have this domino effect of a trade situation, a pandemic, high demand in the U.S., high demand in China and the Chinese redirecting glass fiber supply into China and increasing the cost of glass fiber in the U.S.,” said Jeff Sloan, editor of CompositesWorld, which covers the industry. “It’s probably going to be the fall or even into early winter before some of this starts to iron out.”
The already difficult situation was worsened by severe weather that struck at the heart of US. petrochemical production.
Force of Nature
A winter storm this year brought subfreezing temperatures to Texas, overwhelming much of its electricity infrastructure and shutting down key chemical manufacturing plants in the Houston area. The storm forced two of the country’s largest epoxy producers — Olin Corp. and Hexion Inc. — to turn off the lights at their Gulf Coast facilities.
That made resin nearly nonexistent. Even now, about six months removed from the freeze, businesses are having difficulty finding the stuff.
“We get in a truckload of resin and it’s all sold out immediately. It’s all pre-sold before we even receive it,” said Wooldridge, the association leader. “Then, we’re completely out until we get the next container. It’s been that way for months.”
Consider the cost of other raw materials, labor, and shipping containers — the price of which has risen to upward of $20,000 from about $2,000 — and it’s clear why many recreational-product distributors and retailers can’t restock inventory.
Florida pool builder Kirk Sullivan has had to deliver a difficult message to customers looking for a summer splash. The owner of San Juan Pools recently refunded the deposits of some 250 orders and had to tell other prospective buyers his company is backlogged through next year.
“I’m at the feeding trough of a lot of other industries” that also use resin, said Sullivan, who estimates he’s lost $22 million in business from short supplies.
Holding Pattern
Sullivan said this summer suppliers allotted him only 70% of the volume he received during the winter off-season. With resin availability also limited, his business hasn’t been able to take new orders. But he’s kept all his employees on the payroll to be ready for whenever materials start appearing again at normal prices and volumes.
Whereas once it took as little as six weeks to receive a Surf Hardware International board, now it can take six months, according to regional manager Todd Prestage.
Manufacturers have tried to get creative by, for example, importing more materials from Southeast Asian countries not affected by higher tariffs. But there are few quick workarounds, so consumers are paying more.
Aipa said surfboards that used to cost $750 are now going for around $1,000 — a price supported by loyalty to a brand that dates to 1970. Companies with shorter track records and lesser known brands might not be able to command those premiums.
“I feel bad for those who don’t have bigger brand names, because these price increases are really going to affect their livelihoods,” Aipa said. “We’re just fortunate to be in the position we’re in right now.”
August 31, 2021
Shortages and Surfers
Surfers, Swimmers, Boaters Run Into Summer-Disrupting Fiberglass Shortage
By Brett Haensel August 30, 2021, 11:25 AM EDT
- Shortage of fiberglass affects outdoor recreation industry
- Producers, consumers face longer wait times, steeper prices
Swimming-pool construction has slowed to a crawl. Surfboard manufacturers are disappointing customers who dream of hanging 10. Waiting lists for new boats stretch on for months. There’s a common culprit: fiberglass.
The glittery, lightweight material goes into so many common outdoor products that it’s hard to imagine summertime without it. The supply-chain snarls show how broader forces in international trade, supply and demand have rippled through industries in the past year, leading to higher prices and slowing commerce.
Fiberglass is made by extruding glass into strands measured in microns that are then combined and woven in various ways. Some pool manufacturers use fiberglass exclusively. Most surfboards include a foam core wrapped in fiberglass and resin, and the hulls of most modern boats also are built with those composite materials. It’s used in car parts and recreational vehicles, among other things.
But manufacturing has been hobbled by a shortage of fiberglass cloth and liquid vinyl ester resin, which have gotten scarce and expensive. Some retailers are turning away paying customers, many of whom turned to outdoor recreation to cope with the pandemic.
“It’s very, very painful to have to tell people that they can’t run their businesses because you can’t give them raw materials, nor can you refer them to anybody else that can,” said Kent Wooldridge, president of the United Marine Manufacturers Association, a group that assists independent boat and pool builders. If anyone has raw materials, he said, “they charge outlandish amounts.”
With so many industries hungry for composites, suppliers have been overwhelmed. New tariffs and damage to resin-producing chemical plants caused by winter storms in Texas were “catastrophes,” said Duke Aipa, president of board manufacturer Aipa Surf Co.
Trade Tit-For-Tat
The U.S. produces just a fraction of the world’s fiberglass cloth and has grown reliant on cheap supplies from China. But the trade was snagged by the Trump administration’s hard line trade policy. In 2018, the U.S. imposed a 25% tariff on imported fiberglass cloth and resin.
In response, Chinese manufacturers diverted supply to their domestic market and increased export prices. The nation already had begun to prioritize materials for strategic use such as electricity-generating windmills — which require fiberglass for turbine blades.
The pandemic last year further exacerbated supply-chain challenges when Chinese fiberglass plants were shut down and global demand took off for recreational products.
“We have this domino effect of a trade situation, a pandemic, high demand in the U.S., high demand in China and the Chinese redirecting glass fiber supply into China and increasing the cost of glass fiber in the U.S.,” said Jeff Sloan, editor of CompositesWorld, which covers the industry. “It’s probably going to be the fall or even into early winter before some of this starts to iron out.”
The already difficult situation was worsened by severe weather that struck at the heart of US. petrochemical production.
Force of Nature
A winter storm this year brought subfreezing temperatures to Texas, overwhelming much of its electricity infrastructure and shutting down key chemical manufacturing plants in the Houston area. The storm forced two of the country’s largest epoxy producers — Olin Corp. and Hexion Inc. — to turn off the lights at their Gulf Coast facilities.
That made resin nearly nonexistent. Even now, about six months removed from the freeze, businesses are having difficulty finding the stuff.
“We get in a truckload of resin and it’s all sold out immediately. It’s all pre-sold before we even receive it,” said Wooldridge, the association leader. “Then, we’re completely out until we get the next container. It’s been that way for months.”
Consider the cost of other raw materials, labor, and shipping containers — the price of which has risen to upward of $20,000 from about $2,000 — and it’s clear why many recreational-product distributors and retailers can’t restock inventory.
Florida pool builder Kirk Sullivan has had to deliver a difficult message to customers looking for a summer splash. The owner of San Juan Pools recently refunded the deposits of some 250 orders and had to tell other prospective buyers his company is backlogged through next year.
“I’m at the feeding trough of a lot of other industries” that also use resin, said Sullivan, who estimates he’s lost $22 million in business from short supplies.
Holding Pattern
Sullivan said this summer suppliers allotted him only 70% of the volume he received during the winter off-season. With resin availability also limited, his business hasn’t been able to take new orders. But he’s kept all his employees on the payroll to be ready for whenever materials start appearing again at normal prices and volumes.
Whereas once it took as little as six weeks to receive a Surf Hardware International board, now it can take six months, according to regional manager Todd Prestage.
Manufacturers have tried to get creative by, for example, importing more materials from Southeast Asian countries not affected by higher tariffs. But there are few quick workarounds, so consumers are paying more.
Aipa said surfboards that used to cost $750 are now going for around $1,000 — a price supported by loyalty to a brand that dates to 1970. Companies with shorter track records and lesser known brands might not be able to command those premiums.
“I feel bad for those who don’t have bigger brand names, because these price increases are really going to affect their livelihoods,” Aipa said. “We’re just fortunate to be in the position we’re in right now.”
August 30, 2021
More on IDA Impact
Asia petrochemicals brace for impact as Hurricane Ida forces US outages
Author: Nurluqman Suratman
2021/08/30
SINGAPORE (ICIS)–Selected petrochemical markets in Asia are bracing for tighter supply due to plant outages in the US Gulf Coast triggered by Hurricane Ida.
Any immediate impact on chemical trades between the US and Asia, however, may be limited given high freight costs amid prevailing shortage of vessels.
Ida made landfall near Port Fourchon in Louisiana as a powerful Category 4 hurricane, with winds of 155 miles per hour and is continuing northward as a Category 2 storm, according to the latest advisory by the US National Hurricane Center (NHC) at 22:00 central time (03:00 GMT).
The arrival of Ida forced the closure of several major chemical plants in Louisiana, while ports threatened by the storm have either shut or restricted operations.
In Asia’s orthoxylene (OX) market, US demand is projected to increase going forward as supply is expected to tighten after Ida’s arrival.
In the benzene market, activity was more brisk early on Monday as some traders re-positioned themselves against potential impact of the hurricane on US chemical output.
“The market is firmer as players await more news on the impact of Ida on US production,” said a broker in South Korea.
For monoethylene glycol (MEG), spot discussions in Asia were higher with China’s futures market surging by more than 2% in early trade amid concerns of tighter supply in the wake of hurricane-related outages in the US.
For the polymeric and monomeric methylene diphenyl diisocyanate (PMDI, MDI) markets, any impact on Asian trade remains to be seen.
Cargo availability in the US is set to come under further pressure after BASF shut down units in Geismar, Louisiana.
In the polyvinyl chloride (PVC) market, the US shutdowns will further tighten global supply, with Asian cargoes likely to continue flowing into the Middle East.
US PVC exports to the Middle East and Asia have been constrained for much of 2021, as major US producers have been affected by weather-related issues since early in the year.
For acrylonitrile (ACN), the arbitrage window from the US had been closed even before Hurricane Ida. Major US producer Cornerstone has shut its plant in Louisiana ahead of the hurricane’s arrival.
Spot ACN prices in the US have risen recently due to cost pressure amid spikes in values of feedstock propylene. Current export prices were deemed unworkable for the Asian market.
Regional market players have been expecting fewer spot ACN cargoes in the near term.
Contract volumes to Asia are largely from INEOS Nitriles, whose production so far has not yet been affected.
Asian ACN prices have been stable to firmer supported by tight spot supply, plant issues and upcoming turnarounds.
IDA WEAKENING BUT THREATS REMAIN
The US’ NHC warned that “catastrophic storm surge, extreme winds and flash flooding” are set to continue in portions of southeastern Louisiana.
“The centre of Ida will move farther inland over southeastern Louisiana
tonight,” NHC said.
“Ida is then forecast to move well inland over portions of western Mississippi Monday and Monday night, and move across the Tennessee Valley on Tuesday,” it said.
Some 996,495 power outages were reported across Louisiana as of 03:45 GMT on Monday while in neighbouring Mississippi, 45,497power outages were reported, according to PowerOutage.US.
Around 96% of oil production and 94% of gas production in the Gulf of Mexico has been shut in due to the arrival of Ida as of 29 August, according to the US Bureau of Safety and Environmental Enforcement (BSEE).
Oil and gas operators have evacuated 288 platforms, some 51.43% of the 560 manned platforms in the Gulf of Mexico.
As of 04:45 GMT, oil prices were trading mixed with Brent crude 12 cents higher at $72.82/bbl and US WTI crude down 2 cents at $68.54/bbl.
LOUISIANA PLANT SHUTDOWNS (AS OF 01:30 GMT)
| Company | Site | Products | Status | Date |
| Formosa Plastics | Baton Rouge, Louisiana | PVC, VCM | Shut down | 29-Aug |
| ExxonMobil adjusts US Baton Rouge ops, shut some units on Ida | Baton Rouge, Louisiana | Olefins, aromatics, IPA, polyolefins, base oils | Shut down | 29-Aug |
| ExxonMobil adjusts US Baton Rouge ops, shut some units on Ida | Baton Rouge, Louisiana | Olefins, aromatics, IPA, polyolefins, base oils | Curtailment | 29-Aug |
| Westlake | Geismar, Louisiana | Caustic Soda, EDC, PVC, VCM | Shut down | 29-Aug |
| Westlake | Plaquemine, Louisiana | Caustic Soda, EDC, PVC, VCM | Shut down | 29-Aug |
| Dow | Taft, Louisiana | Olefins, acetic acid, acrylic acid, acrylic acid esters, ethanolamines, EO, glycol ethers, LLDPE | Shutdown | 29-Aug |
| Dow | Plaquemine, Louisiana | Olefins, aromatics, EO, glycol ethers, LDPE, LLDPE, PG, PO | Shut down | 29-Aug |
| BASF | Geismar, Louisiana | BDO, EO, MDI, TDI, polyols | Shut down | 28-Aug |
| Phillips 66 | Belle Chasse, Louisiana | Refined products, aromatics, propylene | Shut down | 27-Aug |
| Shell | Norco, Louisiana | Olefins | Shut down | 27-Aug |
| Shell | Geismar, Louisiana | LAO, EG, EO, linear alcohols, glycol ethers | Shut down | 27-Aug |
| Cornerstone | Waggaman, Louisiana | ACN, melamine | Shut down | 27-Aug |
With additional reporting by Li Li Chng, Jasmine Khoo, Jonathan Chou, Samuel Wong, Judith Wang and Clive Ong
Focus article by Nurluqman Suratman
August 30, 2021
More on IDA Impact
Asia petrochemicals brace for impact as Hurricane Ida forces US outages
Author: Nurluqman Suratman
2021/08/30
SINGAPORE (ICIS)–Selected petrochemical markets in Asia are bracing for tighter supply due to plant outages in the US Gulf Coast triggered by Hurricane Ida.
Any immediate impact on chemical trades between the US and Asia, however, may be limited given high freight costs amid prevailing shortage of vessels.
Ida made landfall near Port Fourchon in Louisiana as a powerful Category 4 hurricane, with winds of 155 miles per hour and is continuing northward as a Category 2 storm, according to the latest advisory by the US National Hurricane Center (NHC) at 22:00 central time (03:00 GMT).
The arrival of Ida forced the closure of several major chemical plants in Louisiana, while ports threatened by the storm have either shut or restricted operations.
In Asia’s orthoxylene (OX) market, US demand is projected to increase going forward as supply is expected to tighten after Ida’s arrival.
In the benzene market, activity was more brisk early on Monday as some traders re-positioned themselves against potential impact of the hurricane on US chemical output.
“The market is firmer as players await more news on the impact of Ida on US production,” said a broker in South Korea.
For monoethylene glycol (MEG), spot discussions in Asia were higher with China’s futures market surging by more than 2% in early trade amid concerns of tighter supply in the wake of hurricane-related outages in the US.
For the polymeric and monomeric methylene diphenyl diisocyanate (PMDI, MDI) markets, any impact on Asian trade remains to be seen.
Cargo availability in the US is set to come under further pressure after BASF shut down units in Geismar, Louisiana.
In the polyvinyl chloride (PVC) market, the US shutdowns will further tighten global supply, with Asian cargoes likely to continue flowing into the Middle East.
US PVC exports to the Middle East and Asia have been constrained for much of 2021, as major US producers have been affected by weather-related issues since early in the year.
For acrylonitrile (ACN), the arbitrage window from the US had been closed even before Hurricane Ida. Major US producer Cornerstone has shut its plant in Louisiana ahead of the hurricane’s arrival.
Spot ACN prices in the US have risen recently due to cost pressure amid spikes in values of feedstock propylene. Current export prices were deemed unworkable for the Asian market.
Regional market players have been expecting fewer spot ACN cargoes in the near term.
Contract volumes to Asia are largely from INEOS Nitriles, whose production so far has not yet been affected.
Asian ACN prices have been stable to firmer supported by tight spot supply, plant issues and upcoming turnarounds.
IDA WEAKENING BUT THREATS REMAIN
The US’ NHC warned that “catastrophic storm surge, extreme winds and flash flooding” are set to continue in portions of southeastern Louisiana.
“The centre of Ida will move farther inland over southeastern Louisiana
tonight,” NHC said.
“Ida is then forecast to move well inland over portions of western Mississippi Monday and Monday night, and move across the Tennessee Valley on Tuesday,” it said.
Some 996,495 power outages were reported across Louisiana as of 03:45 GMT on Monday while in neighbouring Mississippi, 45,497power outages were reported, according to PowerOutage.US.
Around 96% of oil production and 94% of gas production in the Gulf of Mexico has been shut in due to the arrival of Ida as of 29 August, according to the US Bureau of Safety and Environmental Enforcement (BSEE).
Oil and gas operators have evacuated 288 platforms, some 51.43% of the 560 manned platforms in the Gulf of Mexico.
As of 04:45 GMT, oil prices were trading mixed with Brent crude 12 cents higher at $72.82/bbl and US WTI crude down 2 cents at $68.54/bbl.
LOUISIANA PLANT SHUTDOWNS (AS OF 01:30 GMT)
| Company | Site | Products | Status | Date |
| Formosa Plastics | Baton Rouge, Louisiana | PVC, VCM | Shut down | 29-Aug |
| ExxonMobil adjusts US Baton Rouge ops, shut some units on Ida | Baton Rouge, Louisiana | Olefins, aromatics, IPA, polyolefins, base oils | Shut down | 29-Aug |
| ExxonMobil adjusts US Baton Rouge ops, shut some units on Ida | Baton Rouge, Louisiana | Olefins, aromatics, IPA, polyolefins, base oils | Curtailment | 29-Aug |
| Westlake | Geismar, Louisiana | Caustic Soda, EDC, PVC, VCM | Shut down | 29-Aug |
| Westlake | Plaquemine, Louisiana | Caustic Soda, EDC, PVC, VCM | Shut down | 29-Aug |
| Dow | Taft, Louisiana | Olefins, acetic acid, acrylic acid, acrylic acid esters, ethanolamines, EO, glycol ethers, LLDPE | Shutdown | 29-Aug |
| Dow | Plaquemine, Louisiana | Olefins, aromatics, EO, glycol ethers, LDPE, LLDPE, PG, PO | Shut down | 29-Aug |
| BASF | Geismar, Louisiana | BDO, EO, MDI, TDI, polyols | Shut down | 28-Aug |
| Phillips 66 | Belle Chasse, Louisiana | Refined products, aromatics, propylene | Shut down | 27-Aug |
| Shell | Norco, Louisiana | Olefins | Shut down | 27-Aug |
| Shell | Geismar, Louisiana | LAO, EG, EO, linear alcohols, glycol ethers | Shut down | 27-Aug |
| Cornerstone | Waggaman, Louisiana | ACN, melamine | Shut down | 27-Aug |
With additional reporting by Li Li Chng, Jasmine Khoo, Jonathan Chou, Samuel Wong, Judith Wang and Clive Ong
Focus article by Nurluqman Suratman
August 30, 2021
Hurricane IDA Update
Ida makes US landfall in Louisiana as powerful Category 4 hurricane
Author: Al Greenwood
2021/08/29
HOUSTON (ICIS)–Hurricane Ida made landfall on Sunday in Louisiana as a powerful Category 4 hurricane, and meteorologists expect the storm will continue north, following the state’s chemical corridor.
Many companies have already shut down plants in anticipation to the storm. These plants make many plastics and chemicals that are in short supply and at record prices. If they stay idled long enough, the shutdowns will further tighten markets.
STORM
Ida made landfall near Port Fourchon in Louisiana with maximum sustained wind speeds of 150 miles/hour (241 km/hour), making it a Category 4 hurricane on the Saffir-Simpson storm scale.
Ida is moving northwest at 13 miles/hour, according to the National Hurricane Center.
The following map shows the path of the storm.
Source: National Hurricane Center
PLANT SHUTDOWNS
Dow shut down its operations in Louisiana at its St Charles site in Taft and its Plaquemine site. Both sites have crackers and plants that make polyethylene (PE).
The St Charles site also makes acetic acid, acrylic acid, ethylene oxide (EO), glycol ethers and surfactants, among other chemicals.
The Plaquemine site also produces benzene, toluene, EO, glycol ethers, propylene glycol (PG) and propylene oxide (PO), among other chemicals.
At Baton Rouge, ExxonMobil is adjusting its rates and shutting down some units at its complex.
The ExxonMobil site has a refinery and a chemical complex that makes ethylene, propylene, butadiene (BD), PE, polypropylene (PP), phthalic anhydride (PA), plasticizers, benzene, toluene, isopropanol (IPA), base oils and various other chemicals.
BASF plans to idle its Geismar plants by Sunday. It makes butanediol (BDO), EO, methylene diphenyl diisocycanate (MDI), toluene diisocyanate (TDI) and polyether polyols.
Phillips 66 shut down its Alliance refinery in Belle Chasse, Louisiana. In addition to fuel, the refinery makes benzene, mixed xylenes (MX) toluene and propylene.
Shell shut down its plants in Geismar and Norco.
Geismar makes linear alpha olefins (LAO), ethylene glycol (EG), EO and glycol ethers.
Norco makes ethylene, propylene and BD.
Cornerstone is shutting down its acrylonitrile (ACN) and melamine plants in Louisiana.
It is the sole melamine plant in the US. The material is used to make laminates such as Formica.
The products made at many of these plants are already in short supply and the shutdowns could aggravate availability.
The ICIS assessment for US polymeric MDI is at a record high, reflecting the tightness in the market.
Likewise, ICIS has assessed North American BDO contracts and US melamine contracts at record highs before the hurricane.
ICIS recently assessed US contract prices for propylene at a double-digit increases.
Other plants could shut down as Ida moves inland.
The eastern part of Louisiana hit by Ida has a heavy concentration of plants that make polyvinyl chloride (PVC), a plastic used to make pipes as well as siding and profiles used in house construction.
US contract prices for PVC had already hit records before Hurricane Ida.
PVC is made with chlorine, and eastern Louisiana has several plants that make the chemical, along with caustic soda, a by-product of these units.
OIL SHUT-INS
As of Saturday afternoon, oil and gas operators have evacuated 279 platforms, nearly 50% in the Gulf of Mexico, according to the US Bureau of Safety and Environmental Enforcement (BSEE).
Producers have shut in nearly 91% of oil production and nearly 85% of gas production.
POWER OUTAGES
So far, more than 110,000 power outages have been reported to utility companies as of Sunday afternoon, according to PowerOutage.US.
Power outages can shut down operations at chemical plants and delay their restart.
PORT RESTRICTIONS, SHUTDOWNS
Ports threatened by Hurricane Ida have either restricted operations or shut them down.
The following table shows the status of several ports. X-Ray is when tropical storms or hurricane-force storm is predicted to make landfall within 48 hours, Yankee within 24 hours and Zulu within 12.
| Port | Status | Condition |
| New Orleans, Louisiana | Closed | Zulu |
| Plaquemines, Louisiana | Closed | Zulu |
| South Louisiana, Louisiana | Closed | Zulu |
| St Bernard, Louisiana | Closed | Zulu |
| Baton Rouge, Louisiana | Closed | Zulu |
| Pascagoula, Mississippi | Closed | Zulu |
| Biloxi, Mississippi | Closed | Zulu |
| Gulfport, Mississippi | Closed | Zulu |
| Mobile, Alabama | Open with Restrictions | Yankee |
| Pensacola, Florida | Open with Restrictions | X-Ray |
| Panama City, Florida | Open with Restrictions | X-Ray |
RAIL UPDATE
The New Orleans Flood Protection Authority was scheduled to close by Saturday afternoon, which would disrupt all eastward and westward rail routes going through New Orleans, including interchange routes on other carriers.
BNSF was scheduled to suspend all rail operations between Lafayette, Louisiana, and New Orleans at 1200 local time on Saturday.
Norfolk Southern said its operations would be disrupted when the authority shuts down the final flood gate on Saturday at 1400 local time. Shipments destined to New Orleans will be affected for about 48 hours, Norfolk Southern said on Friday.
Union Pacific was scheduled to suspend operations at its intermodal terminal in Avondale, Louisiana at 1600 local time on Friday.
Kansas City Southern and CSX both said on Friday that they are taking steps to prepare for Ida. They did not announce any suspensions.
POTENTIAL FOR DAMAGE
Ida’s size, strength and path could cause billions of dollars worth of damage.
The property data firm CoreLogic estimated on Friday that Ida’s storm surge is threatening 941,392 homes. If all of these homes were destroyed and replaced, CoreLogic estimates that the cost would be $220.37bn.
The reconstruction cost value represents a worst-case scenario, CoreLogic said. For reference, the firm estimated in 2020 that Hurricane Laura may have caused $8bn-12bn in insurable losses.
Home repairs, remodelling and construction make up an important end market for several chemicals and polymers.
The white pigment titanium dioxide (TiO2) is used in paints.
Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropnaol (IPA).
Blends of aliphatic and aromatic solvents are also used to make paints and coatings.
For polymers, expandable polystyrene (EPS) and polyurethane (PUR) foam are used in insulation.
Polyurethanes are made of MDI, TDI and polyols.
High density polyethylene (HDPE) is used in pipe. PVC is used to make cladding, window frames, wires and cables, flooring and roofing membranes.
Unsaturated polyester resins (UPR) are used to make coatings and composites.
Vinyl acetate monomer (VAM) is used to make paints and adhesives.
Additional reporting by Adam Burkin, Tracy Dang, Michael Sims, Antoinette Smith and Alex Snodgrass
Thumbnail image shows path of Ida. Source: National Hurricane Center
HOUSTON (ICIS)–Hurricane Ida made landfall on Sunday in Louisiana as a powerful Category 4 hurricane, and meteorologists expect the storm will continue north, following the state’s chemical corridor.
Many companies have already shut down plants in anticipation to the storm. These plants make many plastics and chemicals that are in short supply and at record prices. If they stay idled long enough, the shutdowns will further tighten markets.
STORM
Ida made landfall near Port Fourchon in Louisiana with maximum sustained wind speeds of 150 miles/hour (241 km/hour), making it a Category 4 hurricane on the Saffir-Simpson storm scale.
Ida is moving northwest at 13 miles/hour, according to the National Hurricane Center.
The following map shows the path of the storm.
Source: National Hurricane Center
PLANT SHUTDOWNS
Dow shut down its operations in Louisiana at its St Charles site in Taft and its Plaquemine site. Both sites have plants that make polyethylene (PE).
The St Charles site also makes acetic acid, acrylic acid, ethylene oxide (EO), glycol ethers, surfactants, among other chemicals.
The Plaquemine site also produces benzene, toluene, EO, glycol ethers, propylene glycol (PG), propylene oxide (PO), among other chemicals. Plaquemine also has a cracker.
At Baton Rouge, ExxonMobil is adjusting its rates and shutting down some units at its complex.
The ExxonMobil site has a refinery and a chemical complex that makes ethylene, propylene, butadiene (BD), PE, polypropylene (PP), phthalic anhydride (PA), plasticizers, benzene, toluene, isopropanol (IPA), base oils and various other chemicals.
BASF plans to idle its Geismar plants by Sunday. It makes butanediol (BDO), EO, methylene diphenyl diisocycanate (MDI), toluene diisocyanate (TDI) and polyether polyols.
Phillips 66 shut down its Alliance refinery in Belle Chasse, Louisiana. In addition to fuel, the refinery makes benzene, mixed xylenes (MX) toluene and propylene.
Shell shut down its plants in Geismar and Norco.
Geismar makes linear alpha olefins (LAO), ethylene glycol (EG) EO and glycol ethers.
Norco makes ethylene, propylene and BD.
Cornerstone is shutting down its acrylonitrile (ACN) and melamine plants in Louisiana.
It is the sole melamine plant in the US. The material is used to make laminates such as Formica.
The products made at many of these plants are already in short supply and the shutdowns could aggravate availability.
The ICIS assessment for US polymeric MDI is at a record high, reflecting the tightness in the market.
Likewise, ICIS has assessed North American BDO contracts and US melamine contracts at record highs before the hurricane.
ICIS recently assessed US contract prices for propylene at a double-digit increase.
OIL SHUT-INS
As of Saturday afternoon, oil and gas operators have evacuated 279 platforms, nearly 50% in the Gulf of Mexico, according to the US Bureau of Safety and Environmental Enforcement (BSEE).
Producers have shut in nearly 91% of oil production and nearly 85% of gas production.
POWER OUTAGES
So far, more than 110,000 power outages have been reported to utility companies as of Sunday afternoon, according to PowerOutage.US.
Power outages can shut down operations at chemical plants and delay their restart.
PORT RESTRICTIONS, SHUTDOWNS
Ports threatened by Hurricane Ida have either restricted operations or shut them down.
The following table shows the status of several ports. X-Ray is when tropical or hurricane force storm is predicted to make landfall within 48 hours, Yankee within 24 and Zulu within 12.
| Port | Status | Condition |
| New Orleans, LA | Closed | Zulu |
| Plaquemines, LA | Closed | Zulu |
| South Louisiana, LA | Closed | Zulu |
| St Bernard, LA | Closed | Zulu |
| Baton Rouge, LA | Closed | Zulu |
| Pascagoula, MS | Closed | Zulu |
| Biloxi, MS | Closed | Zulu |
| Gulfport, MS | Closed | Zulu |
| Mobile, AL | Open with Restrictions | Yankee |
| Pensacola, FL | Open with Restrictions | X-Ray |
| Panama City, FL | Open with Restrictions | X-Ray |
RAIL UPDATE
The New Orleans Flood Protection Authority was scheduled to close by Saturday afternoon, which would disrupt all eastward and westward rail routes going through New Orleans, including interchange routes on other carriers.
BNSF was scheduled to suspend all rail operations between Lafayette, Louisiana, and New Orleans at 1200 local time on Saturday.
Norfolk Southern said its operations would be disrupted when the authority shuts down the final flood gate at 1400 local time. Shipments destined to New Orleans will be affected for about 48 hours, Norfolk Southern said on Friday.
Union Pacific was scheduled to suspend operations at its intermodal terminal in Avondale, Louisiana at 1600 local time on Friday.
Kansas City Southern and CSX both said on Friday that they are taking steps to prepare for Ida. They did not announce any suspensions.
POTENTIAL FOR DAMAGE
Ida’s size, strength and path could cause billions of dollars worth of damage.
The property data firm CoreLogic estimated on Friday that Ida’s storm surge is threatening 941,392 homes. If all of these homes were destroyed and replaced, CoreLogic estimates that the cost would be $220.37bn.
The reconstruction cost value represents a worst-case scenario, CoreLogic said. For reference, the firm estimated in 2020 that Hurricane Laura may have caused $8bn-12bn in insurable losses.
Home repairs, remodelling and construction make up an important end market for several chemicals and polymers.
The white pigment titanium dioxide (TiO2) is used in paints.
Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropnaol (IPA).
Blends of aliphatic and aromatic solvents are also used to make paints and coatings.
For polymers, expandable polystyrene (EPS) and polyurethane (PUR) foam are used in insulation.
Polyurethanes are made of methylene diphenyl diisocycanate (MDI), toluene diisocyanate (TDI) and polyols.
High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes.
Unsaturated polyester resins (UPR) are used to make coatings and composites.
Vinyl acetate monomer (VAM) is used to make paints and adhesives.
Additional reporting by Adam Burkin, Tracy Dang, Michael Sims, Antoinette Smith and Alex Snodgrass
Thumbnail image shows path of Ida. Source: National Hurricane Center
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