Hurricane Ida Barrels towards the Gulf Coast
There have been some glimmers of hope that the resin supply will pick up and prices will start to drop, as noted in our Weekly Resin Report, but there was always the warning of another disruptive event to come. Enter Hurricane Ida.
As of this writing, “Hurricane force winds are expected on Sunday. . . along the Louisiana coast, including metropolitan New Orleans, ”the National Hurricane Center (NHC) in Atlanta reported today, Aug. 28 at 10 a.m. CDT. “Ida is likely to produce heavy precipitation on Sunday and Monday over the central Gulf Coast from southeastern Louisiana to the Mississippi coast, causing sudden and life-threatening urban flooding and significant impacts on people. River flooding. As Ida moves inland, significant flooding is likely to occur Monday and Tuesday in parts of the lower Mississippi and Tennessee valleys, ”the NHC added.
Petrochemical facilities near the expected hurricane path are taking precautions. Shell has initiated a production shutdown in Geismar and Norco, LA, and Phillips 66 has done the same at its Alliance refinery in Belle Chasse, LA, reports Independent Cargo Intelligence Services (CIHI).
It is estimated that 35% of North American styrene production and 20% of US butadiene production are found in the passage of Hurricane Ida, according to ICIS, which adds that the storm could also disrupt chlorine and chlorine production. PVC.
All of this comes as some resin producers are still losing force majeure conditions caused by the abnormal thunderstorm in mid-February. And the hurricane season is far from over.