The second half of 2022 will continue to see challenges persist in transportation and production. However, to a degree, this is a welcomed easing. Univar Solutions is helping customers navigate through these events by utilizing a vast network of global producers to help ensure supply meets the demand challenges.

The supply of select chemistries remains limited, and the international supply chain disruptions continue. However, we are optimistic about many vital ingredients, including methanol, ethanol, IPA, hydrocarbons, acetone, acetate, butanol, glycerin, citric acid, silicone intermediate fluids, and others. We've communicated about some of these previously, so keep in touch with your local Univar Solutions representative for the latest updates on availability and pricing.

While it's positive to see the supply of some products returning, the global situation is everchanging with the war in Ukraine, the recent explosion at the LNG facility in Texas, and Chinese facilities reopening after another round of COVID-19 shutdowns. China will resume consuming to produce goods, which will impact the supply chain globally for items that require containers. In that regard, Chinese supply will likely shift to domestic consumption as demand post-lockdown is projected to be significant and will unquestionably impact Q3 2022.

Moreover, the United States Infrastructure Investment and Jobs Act, enacted on November 15, 2021, has numerous provisions that will have a long-term impact on our national supply chain. One, in particular, will directly impact our industry: the reinstatement of the Superfund Excise Tax, which took effect July 1, 2022. While the impact on the chemical value chain will be significant, the near-term specific outcomes and the mechanism to administer this tax remain ambiguous.

Throughout July (and perhaps into August), we will monitor the evolving situation and inform you of any changes or impacts as they become apparent. We are committed to providing our customers guidance for the specific results passing through the value chain and – more specifically – the tax burden passed on from our supply base. We realize that these taxes are a financial and administrative burden, and we'll continue to assess specific impacts and share information to help customers as we receive it.

However, there is some good news on the horizon! Chemical manufacturing continues to improve and, in some cases, is catching up to demand. While transportation remains an obstacle, Univar Solutions is taking a multimodal approach to leverage our railcar network and truck fleets to mitigate challenges such as the BNSF embargo of California for various commodities, including bulk categories of chemicals. Additionally, we have strong relationships with local and regional logistics companies to complement our capabilities, so we can work hard to keep your operation running.

We appreciate your trust and collaboration as we forge through these unprecedented times together. Reach out to your Univar Solutions representative for any questions or additional concerns, and we thank you for your continued business.

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