Hurricane Harvey Supply Disruptions and Other Supply Issues

As of September 8, 2017, there are several chemical raw material shortages due to Hurricane Harvey and other issues. As of right now, many factories in Texas have not been visited since the employees evacuated so nobody has reliable information about the state of the chemical plants. FBC Chemical has had orders canceled and seen skyrocketing prices in reaction to the chaos and lack of solid information. Nobody has really seen which plants were damaged and how badly. We expect many plants to start back up over the week of September 11. As reports come in from employees in the plants, we expect to be able to make more sense of the market situation and we expect chemical prices/availability to more closely reflect actual reality, rather than panic buying.

Following is a non-comprehensive list of products that FBC Chemical has placed on allocation:

  • Butanol / Butyl Alcohol
  • Butyl acetate
  • Benzyl Alcohol
  • PM Acetate
  • Acetone
  • Methyl Ethyl Ketone
  • Methyl Iso Butyl Ketone
  • Methyl Amyl Ketone
  • Monoethanolamine (all grades)
  • Triethanolamine (all grades)
  • Propylene Glycol
  • Propylene Glycol USP
  • Dipropylene Glycol
  • Glycol Ethers – all grades
  • Hexane
  • Di Basic Ester
  • Silicone Fluids – all viscosities
  • Propylene Carbonate
  • Nonylphenol Decoupage

For further information, please contact your FBC sales representative.

Ethylene Oxide supply issues

This year, a number of North American ethylene oxide producers will take their EO plants offline for scheduled maintenance. As a major feedstock, EO supply affects numerous raw materials. A short list of items this may affect is: ethylene glycol, nonylphenol ethoxylates (e.g. NP-9), alcohol ethoxylates (Tomadol or Empilan products), and several more in the soap and detergent industries.

EO producers have coordinated with each other to minimize supply disruptions and to prevent multiple plants from being offline simultaneously, however, if these plant turnarounds do not all go smoothly and keep to their schedules, price movements and product availability may be exacerbated by unreliable EO supplies. Dow, Indorama and BASF are all scheduled to go offline and return by the end of June. We urge our customers to be prepared for situations such as this until the plants are all back online.NA_EO_Capacity