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.