Plants in the Louisiana region account for about 20% of all North American ethylene production, 25% of all polyethylene production, 20% of benzene output and 35% of styrene output. Katrina has hit an area in the southeast United States that is a major petrochemical production centre, and has had a major impact on USA's petrochemical industry. Katrina has also severely damaged the transportation infrastructure in the area.
Ethylene plants owned by Dow Chemicals Co., Exxon Mobil Corp., Shell Chemicals and Chevron Phillips Chemical Co. are among those affected. None of Nova's plants was affected by the hurricane. On the first of the month, Katrina shut down 9.4% of North American ethylene capacity, and reduced operating rates at 6.4%. Polyethylene overall capacity has been down by almost 7%.
Petrochemical prices have soared in the spot market- yet another victim of the aftermath of Katrina. Ethylene prices spiked by 15% , benzene and polystyrene prices rose even higher by 35%.
08-Sep-05 
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