US distributor Univar analysing inventory amid loss of US Gulf production after winter storm

Adam Yanelli

25-Feb-2021

HOUSTON (ICIS)–US-based international chemicals distributor Univar said on Thursday that it is looking at current inventory in order to keep customers supplied amid the uncertainty of when chemical plants knocked offline in last week’s winter storm will start back up.

“We know how much plant capacity is down at the moment,” said CEO David Jukes during a Q4 earnings call. “But we don’t know how quickly that will come back up. So we are very carefully looking at the stock that we have to make sure that we can maintain supplies to our customers and keep product flowing.”

The company said that all of its facilities in the US Gulf are operational, but the recent storms throughout the US, especially in the hard-hit Texas and US Gulf region, are likely to cause near-term challenges in supply, transport and pricing dynamics.

“Although we lost a few shipping days, all our facilities are now operational, and we are in regular communication with suppliers and customers,” Jukes said.

Looking forward, the CEO said that January business was trending upward, in line with December, but that the supply interruption in February will create challenges.

“I do not think that February is going to fall off as much as the quarter will, and so we are looking across the three months to see what impact that will have,” Jukes said.

Click here to view the US Gulf Coast polar storm topic page

Thumbnail image shows icicles. Photo by David J Phillip/AP/Shutterstock

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?