US Stepan Q2 polymers volumes rise despite higher costs, supply chain issues

HOUSTON (ICIS)–Despite supply chain issues and rising costs for raw materials, Q2 polymers volumes rose for US-based Stepan, the company said during its earnings call on Wednesday.

Excluding the INVISTA acquisition, global rigid polyols volumes were up by 7% year on year, the company said. Including the acquisition, volumes were up by 41%.

Higher demand within the phthalic anhydride (PA) and specialty polyols businesses also contributed to the sales volume growth, Stepan said.

However, North America polyols results decreased by $1.6m year on year, due to rising raw material and manufacturing costs, partially offset by higher volumes.

The inflation the industry saw in H1 2021 has not been seen in at least 15 years, said Scott Behrens, president and chief operating officer of Stepan.

Prices have risen for “every service that touches a customer or any part of their value chain,” he said, citing pandemic-restricted inventories and transportation limitations.

Stepan products are used in a variety of sectors, including coatings, adhesives, sealants and elastomers; construction; cleaning; insulation; oilfield; and personal care.