Late winter storm batters northeast US

The Northeast is experiencing a winter storm capable of disrupting logistics and even government services. Source: NOAA

HOUSTON (ICIS)–A winter storm dubbed Stella developed late Monday into early Tuesday across the north US Atlantic coast, delivering a broad range of snow, sleet and rain, according to meteorologists.

The National Weather Service (NWS) issued various blizzard, winter storm and coastal flood warnings for several areas in the region, spanning from New York, Pennsylvania, New Jersey and Connecticut.

The service forecasts up to 2 feet (0.6 metres) of snow by early Wednesday. Governors for New York, New Jersey Maryland, Virginia and Connecticut declared states of emergency due to the conditions.

The NWS reduced its blizzard warning for New York City on Tuesday morning to a winter weather advisory, with a snowfall forecast of 4-8 inches (10-20 cm), though cities are still experiencing logistical problems both due to road conditions and visibility.

A representative for The Chemical Company noted that their truck deliveries along the Atlantic coast Monday were fine, and deliveries on Tuesday have been unaffected by the weather thus far. Regarding rail, Norfolk Southern said the weather was expected to disrupt their traffic.

“As winter storm Stella progresses across the northeast in the next 24-48 hours, heavy snowfall and blizzard conditions are expected to impede train movement and working conditions, particularly in the Pennsylvania, New Jersey and New York areas,” the company said in a statement. “Customers should expect delays of 24-48 hours on traffic moving through these areas.”

Despite shuttle and rail services working in some spots, the storm also closed ports in New Jersey and New York, according to area port authorities.

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According to Oxford Economics chief US economist Gregory Daco, disruptions to business activity due to the storm could shave up to 0.2% off what he described as an already low GDP growth forecast of 1.1% in the first quarter of 2017.

Regarding products, with the winter season mild overall, it is likely that retailers are drawing down some of the antifreeze inventory build over the last few months. Mono ethylene glycol (MEG), which is used in the production of anti-freeze/coolant, is generally blended into retail antifreeze ahead of the winter season, before retailers stock up.

According to sources, the US monopropylene glycol (MPG) market has seen an increase in demand since the beginning of the year, following a drawdown in inventories at the end of 2016. MPG is used in a variety of consumer products, but is notably used in antifreeze, coolants and de-icers.

Feedstock costs, production issues, inventory building and the strength of downstream markets have been mentioned as contributing factors. However, as the US heads into warmer weather, MPG consumption is likely to shift towards the production of unsaturated polyester resins (UPRs), a major downstream market.

Natural gas futures on the NYMEX settled higher on Monday at $3.043/MMBtu following the increased demand of fuel for heating. However, prices were lower early Tuesday as some expect the storm to be less extreme than predicted.

Additional reporting by Tarun Raizada and Christie Moffat