Hurricane Francine is making its way north now after landfall Sept. 11 at Terrebonne Parish, La. While it's still early, there's an expectation that the storm could affect resin availability and pricing, regardless of other widespread damage in New Orleans and low lying land along the Gulf Coast.
Francine marks the second storm to hit the Louisiana region that is home to a lot of the U.S. petrochemical industry this year.
Chemical Week notes on its website that the vinyl supply chain may be most at risk, with 35 percent of vinyl chloride monomer capacity and 43 percent of PVC production capacity in southern Louisiana. PVC supply and prices also had just recovered after shutdowns and damage from Hurricane Beryl in July.
Like Beryl, Francine was not been particularly strong on its way to land, but it brought with it a storm surge, winds up to 100 mph and heavy rains. The U.S. National Hurricane Center expects the storm to move north along the Mississippi River basin, with the potential for flash floods as far north as Missouri.
Utility company Entergy warned that even a Category 1 storm could lead to power outages lasting for anywhere between two and seven days.
Louisiana is home to 25 percent of U.S. ethylene capacity, 22 percent of polyethylene capacity, 19 percent of U.S. polymer-grade propylene and 21 percent of polypropylene production, Chemical Week notes.
ICIS added that some chemical plants began controlled shutdowns at the start of this week in advance of Francine's arrival as a precaution.