1. Home
  2. News
  3. HWAFUNE Newsletter no.4
2021 / 04 / 09
HWAFUNE Newsletter no.4

Yarn shortage 2021

The Texas blizzard caused a global shortage of plastic and fiber.

In February, the United States ice storm caused Texas two major petrochemical plants INVISTA and ASCEND to announce "force majeure".

In addition, the transportation delay, and the price of chemical fiber raw materials was soaring.

“As factories slowly restart, it will take months for inventories to
recover, with prices likely not returning to normal levels until June.”--Joel Morales, analyst at IHS Markit.

The freeze in Texas, which is one of largest exporters of plastics and other petrochemical products, cause production of 75% of polyethylene, 62% of polypropylene, and 57% of PVC to shut.

Information source: 
Natasha Dailey (2021) A shortage of plastics could force a ‘fight for materials’ among retailers, car makers, and more after Texas storm upends manufacturing: Report. Available from: Business insider [Accessed 17 th Mar. 2021].
Kevin Crowley (2021) Plastic Prices Hit Record High to Stoke Inflation Concerns. Available from: Bloomberg [Accessed 18 th Mar. 2021].