ACC to Trump, governors: Keep chemical industry going during coronavirus crisis

The US chemical industry's trade group told President Donald Trump and state governors this week that its sector must maintain operations as the coronavirus outbreak spreads to ensure supply of chemicals needed for disinfectants, plastics for food preservation and medical equipment, and staples like diapers and soap.

"The role of chemistry is particularly important today, as chemicals enable countless products that will be needed to support good hygiene and treat those who are infected with the coronavirus in the weeks and months ahead," American Chemistry Council President and CEO Chris Jahn said in a letter to Trump and governors late Tuesday.

Efforts to hinder the spread of coronavirus have included cancellations of major sporting events, concerts, conferences, parades, and other large gatherings, as well as closures of bars and limiting restaurants to takeout and deliveries. Companies have increasingly sent employees to work from their homes, while hospitals, grocery stores, and drug stores work to keep up with demand for care and products.

This week, German automaker Volkswagen said it would shut down most of its European plants for two weeks because of the outbreak.

Jahn noted that the US Department of Homeland Security classified the chemical sector as one of critical infrastructure amid all the efforts to combat the coronavirus, and sought to highlight the wide array of products that emerge from chemical production.

CHEMICALS MAKE DISINFECTANTS, PACKAGING, ANTISEPTICS, MEDICAL SUPPLIES

Those include chemical biocides and disinfectants, plastics in food packaging, soap and toothpaste, and antiseptics, such as isopropyl alcohol and hydrogen peroxide.

He also noted chemicals used to fertilize crops and chlorine for water treatment.

Specific to the virus, he noted polyvinyl chloride, a construction staple used to make pipes and vinyl siding, also is used to produce medical tubing, blood and intravenous bags. Polypropylene, used frequently for plastics in vehicles, also is used to make medical-grade personal protective equipment like masks, gowns and goggles.

A range of chemicals also are used to make over-the-counter and prescription medicines.

Market sources said they had heard of no efforts to reduce rates at US petrochemical plants, although rates could decline if demand falls off, as seen in January and February in China. While Chinese factories and manufacturing plants were starting to ramp up as workers returned, other regions, such as the US and Europe, were facing slowdowns in activity as throngs of workers set up laptops and other equipment to work from home and limit outings in an effort to slow the spread.

While demand for products and exports has not collapsed, sources said they see international customers stepping back, unsure where demand will be in April or May, when March orders would arrive.

"There is some demand, but it's going to be difficult," a source said.

Another source noted that plant turnarounds could limit output during some of the uncertainty about future demand, but companies could face delaying such shutdowns for planned work if they cannot secure enough contractors when workers are trying to keep their distance from each other.

"I think that's a bigger problem," the source said. "If you have a cracker turnaround you could have 100 contractors on site."