The effects of historic winter storm Uri continue to be felt in the corrosion fiberglass industry. While most of the chemical manufacturers that were shut down by the storm have resumed production of the components required for resin manufacturing, there continue to be shortages that are impacting the nation’s resin supply. As a result, some deliveries of fiberglass tanks and pipes have been delayed as fabricators are not getting all the resin they need to complete projects.
The weak resin supply is sensitive to two facts:
First, the extremely low resin inventory is vulnerable to any disruption (planned or unplanned shutdowns, transportation issues, etc). Even minor disruptions will push through the supply chain and impact resin availability. We have seen two unplanned shutdowns of key basic chemicals over the last month.
Second, the basic chemicals needed for resin manufacturing are still not available in sufficient quantities that would allow resin suppliers to rebuild safety stocks. Until that happens for a period of time long enough for sufficient safety stock to be established, we don’t expect supply or price stability.
We are hopeful for continued improvement of the resin supply through the remainder of the year but expect challenges as the industry recovers.