- Harvey has disrupted a third of U.S. chemical production, Bloomberg reports, raising prices and threatening shortages for basic industrial building blocks such as chlorine and ethylene.
- Petrochem producers include Exxon Mobil (NYSE:XOM) and Occidental Chemical (NYSE:OXY) have shut plants and cut back operations, affecting 37% of U.S. capacity for making chlorine and caustic soda used to make vinyl and PVC pipe, and ~40% of U.S. ethylene capacity; ethylene is the most used petrochemical and largely goes into plastics such as polyethylene, used in trash bags and food packaging.
- Olin Corp . (NYSE:OLN) is the world’s largest producer of chlorine and caustic, which are produced in tandem as chlor-alkali, and SunTrust's Jim Sheehan says even with some production shut due to the storm, the impact should provide a net benefit to the company because of higher prices.
- Westlake Chemical (NYSE:WLK) should benefit from tighter markets for chlor-alkali and ethylene as well as downstream products such as polyethylene and PVC resins, says Vertical Research's Kevin McCarthy, since WLK's facilities are outside the storm's direct path while rivals are shutting plants.
- XOM, Dow Chemical (NYSE:DOW), LyondellBasell (NYSE:LYB), Chevron Phillips (CVX, PSX) and Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B) have been forced to close ethylene plants in recent days.
- Now read: Wells Fargo (NYSE:WFC) Is Wrong About Exxon Mobil
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More than a third of U.S. chemical production shut by Harvey
Published 08/28/2017, 05:15 PM
More than a third of U.S. chemical production shut by Harvey
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