URGENT NEWS - In the last two weeks there have been multiple producer announcements including Exxon, Dow, etc. Chemical markets are skyrocketing. and Propylene is up $0.25/# which is the base of most of the raw materials we distribute for extraction.
We will try and keep pricing impacts at a minimum but it is going to be a wild ride the next few months ahead. Our contacts at The National Association of Chemical Distributors (NACD) are reporting these shutdowns have nothing to do with Covid. Producer shutdowns, turnarounds, ocean freight is almost triple.
“There are so many compounding factors that are adding to a very difficult market. N-Butanol, a major product won’t even be available until March/April. There are many products in the same boat. There are plants shut down, the gulf coast is a wreck and no one has any idea to what extent this is going to last.” said one inside source.
As of Friday, 2/19/2021, there were over 10 Force Majeure’s declared and 38 plants that are shutdown, on FM or barely operating. This is a lot to digest but chemical manufacturers will be facing this situation over the coming weeks and months. "We are facing unprecedented times in the chemical sector."
Here at Solvent Direct, we are 110% committed to extraction supply. By focusing exclusively on the needs of our extraction clients' and not the needs of other market segments, we are better suited to insulate extractors from these market forces. Currently, our teams are working around the clock to secure inventories of material and keep our trucks running 24/7 with the compliant laboratory supply, delivered on time every time, for the best prices.
In an emergency meeting with Solvent Direct NACD sources on Sunday, President and CEO at Solvent Direct, Inc LB Shontz stated “We take our commitment to extractors very seriously and our supply teams will be doing everything in our power to secure inventory, maintain supply chains and protect against price increasing for our extraction operators over the coming months.”