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Hurricane Ida caused the closure of the Dow factory, and chemical product prices will be affected

2021-09-01

On August 29, Dow announced that it had safely closed its manufacturing operations in Louisiana. The Dow Chemical Plant on the U.S. Gulf Coast has developed a comprehensive and clear hurricane preparedness plan to minimize production interruptions while protecting the safety and health of employees, communities, and the environment.

At present, Hurricane Ida makes landfall near the Port of Fourchon, Louisiana, with a maximum sustained wind speed of 150 mph (241 km/h). It became a category four hurricane on the Saffir-Simpson storm level.It was not reduced to a Category 3 hurricane until the evening of the 29th local time.

The Gulf of Mexico and Louisiana are home to oil and gas exploration companies and petrochemical plants. According to the US Bureau of Security and Environmental Enforcement (BSEE), as of the 29th local time, producers in the region have shut down approximately 96% of their oil and 94% of their natural gas production. There is a high probability that petrochemical plants along the coast will also be affected.

The impact of the hurricane on energy and chemical products has two paths: one is that the supply of crude oil and natural gas at the cost end will be affected, and the chemical industry will be supported by costs, and prices will rise; the other is that the hurricane will further affect the start of petrochemical plants in coastal areas and the supply of chemical products will be affected. Prices have risen.

In addition to Dow, Exxon Mobil, Shell, and BASF also cease production. Huntsman was on the sidelines last Friday, but said he would take preventive measures once the storm intensified.

Xiamen Juguangli Import & Export Co., Ltd

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