🌍 The Strait of Hormuz Crisis: A Catalyst for a Global Chemical Supply Chain Paradigm Shift

The recent geopolitical crisis has significantly impacted our industry.

We are seeing a parabolic increase in raw material costs, driven largely by severe shortages of methanol and other key feedstocks.

Consequently, glycerine prices have surged.

Several critical factors are currently driving this volatility:

• Supply Chain Disruptions: The closure of the Strait of Hormuz—a vital chokepoint for 20% of global oil trade—has caused a massive spike in freight and insurance costs.
• Surging Demand: We are seeing “panic buying” for April shipments Middle East Region as buyers rush to secure supply before prices climb further.
• Upstream Pressure: Rising costs for Crude Oil combined with higher Brent crude prices, continue to push biodiesel and glycerine values upward.