A severe drought in Mexico has been building for months, but it didn't break through to gain global attention until major industrial firms had to limit production a few weeks ago.
On May 31, Chemours announced it was temporarily shutting down production at a titanium dioxide plant in Altamira, Mexico. Orbia, Sabic and Ineos Styrolution all announced closures in the same region earlier in the month, as Plastics News' Frank Esposito writes.
What has changed recently? Altamira and neighboring Tampico sit on Mexico's Gulf Coast, but the region has suffered for years from low rainfall. Add to that a dry El Nino weather pattern during the winter and an aging water infrastructure system and local officials find themselves needing to ration water to prioritize residents rather than industry or recreation.
The North American Drought Monitor lists huge areas of Mexico as suffering "extreme" or "exceptional" drought — its highest setting — with much of the rest of the country seeing severe or moderate droughts.
In addition, high temperatures have hit the area during the past few weeks. Mexico's electric grid operator, Cenace, alerted users in mid-May that high demand for power could disrupt service, ICIS noted.
Meanwhile, water shortages in Mexico City have left "tens of thousands" of residents without access to regular water supply, Reuters reported.
Expect more closures in the weeks ahead, unless weather conditions make a drastic change.
