Global Chemicals Industry: Production Challenges and Impacts

The world’s chemical supply is expected to be disrupted by the upcoming hurricane season. With the US being the leading global chemical producer, most of the chemical industry resides in Texas, Pennsylvania, Ohio, Kentucky, Oklahoma, and surrounding areas. The hurricanes could shut down the production and extraction of crude needed to produce chemicals. On the other hand, the German chemicals company BASF may halt production at its plant in Ludwigshafen, Germany, due to limited gas supplies and no alternative energy sources. Olin Corporation has also declared force majeure on multiple chemical products due to several disruptions, impacting the production of chlorine, caustic soda, bleach, and hydrochloric acid, among other chemicals. Potential industries impacted are life sciences, consumer packaged goods, automotive, aerospace, high tech, and many more.