Chemical Distributors NAICS 4246

May 20, 2025 - Predictions for a Dynamic Atlantic Hurricane Season

• If realized, early predictions for a dynamic 2025 Atlantic hurricane season could spell trouble for the petrochemical industry and the chemical manufacturers and distributors that rely on it, according to AccuWeather. In May, AccuWeather meteorologists predicted 13 to 18 storms, of which 7 to 10 will be hurricanes. Water temperatures in the Gulf of Mexico and Caribbean are already well above historical averages, and will stay warm throughout most of the year, priming storms for explosive development. With facilities concentrated along the Gulf Coast in Texas and Louisiana, basic chemical manufacturers are especially vulnerable to tropical storms and hurricanes, which can disrupt operations. Hurricane experts at Colorado State University are predicting a 70% storm chance and 44% hurricane chance this year for Texas, and 74% storm chance and 46% hurricane chance for Louisiana.
• US chemical manufacturers saw new orders, production, and capacity utilization increase in the first quarter, according to the American Chemistry Council’s latest Chemical Manufacturing Economic Sentiment Index (ESI). The index – which tracks chemical companies’ assessment of their sales, production, and output — posted gains in Q1 despite weak customer demand in major markets and economic headwinds at home and abroad. But rising operating costs led chemical manufacturers to curtail capital spending in Q1 following a year and a half of growth. In contrast to positive first quarter sentiment, more than two-thirds of manufacturers polled were less optimistic about the next six months, citing rising costs for raw materials, energy, transportation and labor, according to ACC.

• EPA action to streamline the chemical review process could help bring new chemicals to market faster, Chemical Processing reports. The permitting process for new chemicals would accelerate with the repeal of a Biden-era amendment to the Toxic Substances Control Act (TSCA) that placed stricter requirements on the new chemicals review process. As part of the Trump administration’s deregulation efforts, the EPA has announced plans to reconsider the regulation governing the review of chemicals already in commerce. Also, the Biden-era amendment to the TSCA has come under fire by the industry and republican lawmakers who say it places unnecessary burdens on chemical manufacturers and refiners by slowing the permitting process and inhibiting the availability of chemicals. The EPA’s move to streamline chemical reviews came just days after the agency issued new guidance directing that any spending exceeding $50,000 requires approval from the Elon Musk-led Department of Government Efficiency.
• In a blow to big agricultural chemical manufacturers, US farmers are trading down to generic chemicals to treat their crops, Reuters reports. Falling crop prices and rising input costs are causing US farmers to cut back on their spring planting budgets, sending shocks throughout the US agriculture sector, including the chemical companies that make pesticides and fungicides. “It’s like if you grew up eating Fruity Pebbles and now you go to Dollar General and get Fruity Bites,” Illinois grain grower Jeff O’Connor told Reuters. The pullback in spending is impacting ag chemicals companies including Bayer, Syngenta, Corteva, which are also facing increasing generic competition. The expiration of over two dozen active ingredient patents in recent years is driving a boom in off-patent use, with which now accounts for about 80% of the agrichemical market share, Rabobank agricultural analysts told Reuters.