PODCAST: Suez Canal blockage adds insult to injury for chemical markets already starved of supply

Author: Will Beacham

2021/03/29

BARCELONA (ICIS)--The closure of the Suez Canal is heaping further pressure on chemical supply chains which are already suffering from product shortages amid strong demand.

  • Suez blockage adds to market woes caused by shipping container crisis; US, Europe and Middle East outages; semiconductor shortage
  • No sign of easing – supply more important than price
  • Cargoes stuck include base oils, methanol, purified terephthalic acid (PTA), polyethylene terephthalic (PET), monoethylene glycol (MEG), acetone and bisphenol A (BPA)
  • Pressure builds to make supply chains more robust
  • Global base oils markets dry; situation is critical
  • Chinese imports of high density polyethylene (HDPE) and polypropylene (PP) collapse

Interview with Eashani Chavda, John Richardson and Nigel Davis.

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Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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Interview by Will Beacham