Plastics Shortages Amid Slow Restart of Petrochemical Plants

Plastics Shortages Amid Slow Restart of Petrochemical Plants

Extremely low temperatures in the southern United States and northern Mexico in mid-February caused widespread power outages, natural gas shortages, and equipment failures that subsequently disrupted operations across a variety of industries ranging from semiconductors to automotive and petrochemicals.

This report explores in detail the petrochemical supply chain challenges amid potential shortages, how this could affect downstream manufacturing industries, and when supplies can be anticipated to normalize.

Insights & Key Findings…

  • February’s bitter cold temperatures in the U.S. and northern Mexico caused massive power outages and equipment down time impacting business operations in multiple sectors ranging from semiconductors to automotive and petrochemicals.
  • The impact of the cold weather is likely to persist the longest across the petrochemical sector, as up to 85 percent of U.S. production capacity of three of the most widely used plastic polymers in the world has temporarily been disrupted.
  • Supplies of these three building blocks were tight even before the storm hit, which has since exacerbated a supply shortage and resulted in record-high spot prices for certain plastics.

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Record Level Shipping Costs Intensify Supply Chain Stakes [Report]

Transportation costs to ship containers from Asia to North America and Europe have been rising at a historic pace as the supply chain industry experiences persistent congestion at major gateways. Download the recent Everstream report to find out how a long-term rising shipping cost crisis will likely hit cargo shippers ranging from food and beverage companies to retailers and automakers.