How Basic Chemicals are Being Impacted in the Supply Chain

Key Points:

• Supply Chain Issues are causing disruptions to the chemical industry.
• Ethylene, PVC, and epoxy resins are seeing price surges to the disruptions.
• The big players figured out how to deal with disruptions in the supply chain.

Commentary:

Disruptions in the supply chain are causing problems across every industry. Basic chemicals, such as ethylene, PVC, and epoxy resins, are seeing price surges due to these disruptions. We asked Jimmy Jett, CEO of Integrity BioChem, about these demand increases and what sort of role does it play in the overall chemical supply chain issue.

Abridged Thoughts:

Obviously, demand. There is a lot of pent-up demand from the pandemic, as people start to consume more and get back on the roads and travel. You’re seeing a lot of demand. It is unfortunate that demand is spiking, as supply is dwindling. What you’re seeing is that the big players have more sophisticated supply chain systems and have gotten out ahead of it. Some great examples are you’ve seen some of the bigger companies that have even contracted their own fleet to move goods and services around the world. You’re seeing some of the larger players with a really solid plan to mitigate some of the supply chain issues, but the Tier Two and Three companies might not have the cash flow to go out and purchase six months worth of inventory. 

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