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Everchem Updates
VOLUME XXI
September 14, 2023
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August 30, 2021
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
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
August 30, 2021
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
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August 27, 2021
Press Release of Recticel – 27 August 2021 First half-year 2021 results – Strong volumes – Solid margins – Integration of FoamPartner
Net sales increase from EUR 374.3 million to EUR 596.2 million (+59.3%), of which 39.7% organic growth, 0.4% currency effect and a EUR 71.9 million contribution from 2Q2021 FoamPartner sales Adjusted EBITDA: from EUR 19.0 million to EUR 56.9 million Result of the period (share of the Group): from EUR 60.1 million (including EUR 68.8 million result from discontinued operations) to EUR 28.0 million Net financial debt: EUR 206.6 million
Olivier Chapelle (CEO): “The positive sales trend observed during 1Q2021 continued in 2Q2021, driven by very strong demand in Insulation and solid demand in Engineered Foams. In Bedding, volumes are now improving due to the lifting of the mobility and business restrictions which still affected Germany and The Netherlands specifically during 1H2021. The chemical raw materials supply remains very tight due to planned maintenance and new force majeure incidents at the premises of our suppliers, affecting primarily the MDI availability and pricing. Normalization of the situation remains difficult to predict, and we continue to adapt pricing where necessary.
The integration of FoamPartner in Engineered Foams progresses smoothly, and forecasted synergies at the horizon of 2023 are expected to reach EUR 18 million. The divestment process of the Bedding business is on track and binding offers are expected by the end of 3Q2021. Due to some delay with the carve-out process, the closing of the acquisition of Gór-Stal’s insulation board business is now expected to take place in the course of 4Q2021.
Finally, there will be an important change in the composition of the Group Management Committee: after 19 years of service as CFO and Member of the Group Management Committee, Jean-Pierre Mellen has decided to retire on 31 August 2021. He will be succeeded by Dirk Verbruggen, currently General Counsel & General Secretary, who will combine the CFO and General Counsel responsibilities. Dirk joined Recticel’s Legal Department in 1999, and was appointed General Counsel & General Secretary and member of the Management Committee in 2012. Jean-Pierre will continue to provide support until August 2022 for special assignments and in order to ensure a smooth transition. I take the opportunity to warmly thank Jean-Pierre for his many contributions and total commitment to Recticel.”
OUTLOOK Our underlying end-use markets continue to show positive momentum in a still very volatile environment. Based upon the current trading, our Group confirms its expectation of an Adjusted EBITDA in a range between EUR 123 million to EUR 133 million for the full year 2021, including the contributions of FoamPartner (9 months) and its related synergies.
August 27, 2021
Press Release of Recticel – 27 August 2021 First half-year 2021 results – Strong volumes – Solid margins – Integration of FoamPartner
Net sales increase from EUR 374.3 million to EUR 596.2 million (+59.3%), of which 39.7% organic growth, 0.4% currency effect and a EUR 71.9 million contribution from 2Q2021 FoamPartner sales Adjusted EBITDA: from EUR 19.0 million to EUR 56.9 million Result of the period (share of the Group): from EUR 60.1 million (including EUR 68.8 million result from discontinued operations) to EUR 28.0 million Net financial debt: EUR 206.6 million
Olivier Chapelle (CEO): “The positive sales trend observed during 1Q2021 continued in 2Q2021, driven by very strong demand in Insulation and solid demand in Engineered Foams. In Bedding, volumes are now improving due to the lifting of the mobility and business restrictions which still affected Germany and The Netherlands specifically during 1H2021. The chemical raw materials supply remains very tight due to planned maintenance and new force majeure incidents at the premises of our suppliers, affecting primarily the MDI availability and pricing. Normalization of the situation remains difficult to predict, and we continue to adapt pricing where necessary.
The integration of FoamPartner in Engineered Foams progresses smoothly, and forecasted synergies at the horizon of 2023 are expected to reach EUR 18 million. The divestment process of the Bedding business is on track and binding offers are expected by the end of 3Q2021. Due to some delay with the carve-out process, the closing of the acquisition of Gór-Stal’s insulation board business is now expected to take place in the course of 4Q2021.
Finally, there will be an important change in the composition of the Group Management Committee: after 19 years of service as CFO and Member of the Group Management Committee, Jean-Pierre Mellen has decided to retire on 31 August 2021. He will be succeeded by Dirk Verbruggen, currently General Counsel & General Secretary, who will combine the CFO and General Counsel responsibilities. Dirk joined Recticel’s Legal Department in 1999, and was appointed General Counsel & General Secretary and member of the Management Committee in 2012. Jean-Pierre will continue to provide support until August 2022 for special assignments and in order to ensure a smooth transition. I take the opportunity to warmly thank Jean-Pierre for his many contributions and total commitment to Recticel.”
OUTLOOK Our underlying end-use markets continue to show positive momentum in a still very volatile environment. Based upon the current trading, our Group confirms its expectation of an Adjusted EBITDA in a range between EUR 123 million to EUR 133 million for the full year 2021, including the contributions of FoamPartner (9 months) and its related synergies.
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