Update as of 04/24/226

Market Update: Escalating Global Disruption and What It Means Moving Forward

We want to provide a direct and transparent update as the global situation continues to evolve.

The ongoing instability surrounding the Strait of Hormuz continues to tighten its grip on global oil and fuel supply. This is no longer just an energy issue. It is now fully impacting secondary and downstream markets in a meaningful way.

Roughly 20 percent of the world’s petroleum liquids move through this region, and over half of key feedstocks are tied to this area. When that flow tightens, the impact does not stay contained. It spreads quickly across chemicals, materials, and manufacturing.

We are now seeing that ripple effect accelerate.

Jet fuel markets are tightening. Glycols and solvent feedstocks are under pressure. Polymer production for plastics is being disrupted. At the same time, critical metals like lithium and tungsten are being constrained, impacting everything from military equipment to microchips and electronics.

Price increase letters are no longer occasional. They are arriving weekly, and in some cases, with every order.

Chemicals and Materials Most Impacted

Solvents and petrochemical derivatives
Acetone, Methanol, Isopropyl Alcohol, Ethyl Acetate, Methyl Ethyl Ketone, Heptane, Hexane, Toluene, Xylenes

Glycols and feedstocks
Propylene Glycol, Dipropylene Glycol, Ethylene Glycol, Propylene Oxide

Basic chemicals
Sodium Hydroxide, Potassium Hydroxide, Phosphates, Fertilizers

Polymers and upstream materials
Polyethylene, Polypropylene, Nitrile Butadiene Rubber, Butadiene

Energy and fuels
Crude Oil, Jet Fuel, Diesel

Metals and strategic materials
Lithium, Tungsten, Copper, Aluminum, Nickel

Secondary impacts are building as well. Gloves and PPE are tightening due to nitrile and butadiene constraints. Packaging materials are under pressure from resin availability. Microchip supply chains are being affected by both energy costs and metal availability.

Across the board, the same themes continue to show up. Supply chains are disrupted. Logistics routes are unstable. Raw materials are tightening. Energy and transportation costs are rising. Sellers are hesitant to quote.

The sentiment across the industry is clear. Even after five years of constant disruption and adaptation, this level of instability is unlike anything we have seen.

This Is Not a Short Term Event

Every day this continues, the long term impact deepens.

Even if the Strait of Hormuz were to fully reopen tomorrow, the market does not simply reset. There are real questions that will take time to resolve.

Will insurance companies return at previous levels with geopolitical risk still unresolved?
Will ship owners take on that level of exposure, and at what cost?
Will there be immediate product availability, or will supply take time to rebuild?
Which regions and countries will receive priority as supply begins to move again?
What new fees, premiums, and surcharges will be layered into the cost of moving goods?

These are not theoretical concerns. They directly impact availability, timing, and cost.

Even under improving conditions, recovery will be uneven and slow. Infrastructure damage, production interruptions, and supply chain breakdowns take time to rebuild. This will outlast the conflict itself.

Where We Stand

We are staying extremely close to this situation.

We are in constant communication with suppliers, partners, and colleagues across the country, comparing real time information and watching how different regions are responding. Conditions are shifting quickly, and we are treating them that way.

Internally, we are actively managing inventory, evaluating alternative sourcing, and making forward looking decisions based on what is developing, not just what has already happened. Our goal is to stay a step ahead where possible.

We will continue to keep you informed as changes unfold. Pricing will be adjusted as it comes to us when we cannot mitigate it internally, and our website will reflect those changes in real time so you have the most accurate information available when you need it.

Our commitment is simple. We will stay transparent, stay engaged, and do everything we can to help you navigate this.

We take seriously the responsibility of being a trusted source and a steady partner, especially in a market that is anything but steady.

March 24th Post

We have now received multiple supplier increase letters and the message is consistent. The solvent market is entering a period of significant instability.

For the past five years, we have worked hard to create a sense of stability for our customers while absorbing and managing volatility internally. We increased inventory, adjusted purchasing strategies, and held pricing wherever possible. We recently expanded inventory again to build a bridge through this disruption.

That bridge is now under pressure.

As the conflict in the Middle East expands, the impact is moving rapidly through energy, petrochemical feedstocks, and into finished solvents. This is no longer a future concern. It is happening now and accelerating.

Why the Market Is Destabilizing

At the core of this issue is crude oil and its role as the foundation for a large portion of the chemical industry.

The Strait of Hormuz remains one of the most critical chokepoints in the global energy system. Approximately 20 percent of the world’s petroleum liquids move through this corridor. Any threat to that flow introduces immediate risk into pricing, availability, and logistics.

Markets do not wait for disruption. They price in the risk of disruption. That risk premium is already embedded in crude and is flowing directly into solvent feedstocks.

Refineries and petrochemical producers are now facing higher input costs, tighter availability of key fractions, and increasing uncertainty around future supply. At the same time, shipping costs, insurance rates, and transit times are all increasing due to regional instability.

There is also a global imbalance forming. European and Asian markets are more exposed to Middle East supply disruptions, while the United States has some insulation due to ethane based production. However, global markets are interconnected. When supply tightens overseas, demand shifts and pricing pressure follows globally.

Methanol is another key pressure point. Iran supplies roughly 10 percent of China’s methanol demand. Any disruption to that flow has immediate global implications, tightening supply and increasing pricing across multiple downstream chemical chains.

We are also seeing behavioral shifts in the market. Sellers are hesitant to quote. Contracts are tightening. In some cases, trading activity is slowing because participants cannot confidently price risk. That level of uncertainty is something many in this industry have not experienced before. Read more from Oil execs as they warn of long-term damage from Iran war

Products Currently Impacted

We are seeing significant upward pressure on the following: Acetone, Heptane, Hexane, Ethylene Glycol, Ethyl Acetate, Isopropyl Alcohol, Methanol, Methyl Ethyl Ketone, Propylene Glycol, Sodium Hydroxide, Toluene, and Xylenes.

In addition, our glove suppliers are warning of large increases along with rising transportation costs. Fuel surcharges are increasing and tariff uncertainty continues to add another layer of cost pressure.

What This Means Going Forward

We expect more frequent price changes with little to no advance notice. Production cuts across petrochemical and related industries are a real possibility as feedstock availability tightens. Higher costs for raw materials will impact everything from plastics to fertilizers.

The most important point is this. These impacts will likely extend beyond the duration of the conflict itself. Damage to infrastructure and disruption to production capacity takes time to rebuild. Even if tensions ease, the supply chain does not immediately reset.

How We Are Responding

We are in constant communication with our suppliers and with colleagues across the industry to assess conditions in real time and understand how different regions of the country are weathering these impacts.

The consensus is clear. Even after five years of unprecedented disruption, market shifts, and continuous adaptation, this level of instability is unlike anything we have seen.

That is exactly why we are staying close to the market. We are actively monitoring signals, adjusting positioning, and working to stay a step or two ahead of what is coming rather than reacting after the fact.

Where We Stand

Our regular price adjustment will take effect April 1. The products listed above will experience additional increases directly tied to current market conditions.

We will continue to monitor closely, purchase strategically, and reduce pricing as soon as relief reaches us. That commitment has not changed.

What has changed is our ability to fully absorb these increases. We have reached the point where some of these costs must be passed through.

I do not say that lightly. We have exhausted the internal strategies that allowed us to hold the line for as long as we did.

We remain vigilant, engaged, and committed to navigating this alongside you.