Supply Chain Risks for 15Feb2016- By: Charlotte Hicks

While The West is enjoying warmer than normal temps, many of us on the East Coast are working from home again as Winter Storm Olympia moves east and severe weather threaten The South. Above is my chemical supply chain map of the US, to give you an idea of the potential impact of this storm.

Palm Oil price increase: Prices for crude palm oil (CPO) is expected to rise temporarily about 5.5% over last year as the El Nino impacts production in both Malaysia and Indonesia. The increase is expected during March-May, as soybean harvest come to market and domestic consumers switch to soy. However, keep in mind that chemical manufacturers depends on palm oil as a building block for many products. The concern for our market will be the quality of the palm oil coming from El Nino stressed areas. If the quality does not meet spec, then we can see tightness.
Bottom line: Monitor for increased lead times on these materials.

Folic Acid: Pakistan continues to report high prices of folic acid due to market tightness. Back in the Q1-Q2 of 2015, folic acid became extremely tight due to manufacturing shutting down in China.
Bottom line: While we have seen some relief with folic, the tightness continues.

Author: Charlotte Hicks

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Image Credit : supply chain map of the US by Charlotte Hicks is licensed under CC BY 2.0

“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”

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