|Chem One Ltd||October 2018|
We go into the fourth quarter with 10% tariffs on many inorganic chemicals from China through December. Fortunately, most of our products come from other areas. The products that do come from China that aren’t affected by tariffs are Erythorbic Acid, Isocyanuric Acid, Sodium Erythorbate, and Thiourea.
The proposed added tariffs on “List 3” products from China of 10% went into effect on Monday September 24, 2018. They are set to increase from 10% to 25% on January 1, 2019. This list contains a large group of chemical products which were not present in the previous two lists. A 10% added cost by way of tariffs is not helpful, but the move to 25% will be much more strongly felt. Consumers’ costs will rise. Domestic pricing will increase. The markets will see shifts. Alternatives will be sought. Many of those alternatives could be our sources so please call for quotes if the tariffs are impacting you.
We have already seen consequences in shipping space availability. Shippers are scurrying to get containers on ships that can arrive in the US before the end of the year expected increase to 25% added tariff. Hopefully this issue can be worked out with additional meetings between US and Chinese trade representatives before the end of the year. No doubt we will all be watching the news to monitor this important issue and its potential impact. List 3 Link.
Copper prices increased as investors had priced in tariffs and after it was finalized viewed 10% as a manageable number. We stated in the September newsletter with the copper softness it was a good time to buy Copper Sulfate. That proved correct as copper moved to higher levels at the end of the month. Even with the late September run up in prices typically the fall is a lower cost option than waiting for the start of the next year. The fourth quarter can be a profitable time to purchase. Copper, the raw material for Copper Sulfate, tends to be depressed as manufacturing for the year slows down.
No changes on the Zinc Sulfate prices and we wouldn’t expect much, if any change through December. Call for Zinc Sulfate and Zinc Oxide prices.
Fourth quarter is a great time to send those pallet and truckload orders to us to avoid end of the year high inventories. We stock most our products for immediate shipment and for customers to have quick turnover. Product List
Back in 2007 and for some time before we talked a lot about the Chemical Facility Anti-Terrorism Standards, also known as 6 CFR, Part 27, a set of US government security regulations for high-risk chemical facilities such as chemical plants, electrical generating facilities, refineries, and universities. The US Department of Homeland Security promulgated the Final Rule on April 9, 2007. The regulations came into effect on June 8, 2007, apart from material covered in Appendix A, which took effect upon its publication in the Federal Register on November 20, 2007.
Under CFATS, a chemical facility is any establishment or individual that possesses or plans to possess any of the 322 chemicals of interest (COI) listed in Appendix A at or above the specified Screening Threshold Quantity (STQ).
Through the CFATS process, the Department determines whether or not a facility is high-risk; assigns the facility a tier level of 1, 2, 3, or 4 with Tier 1 representing the highest-risk; and reviews and approves the facility’s security plan (Site Security Plan (SSP) or Alternative Security Program (ASP).
Chemical security is not a temporary issue. After a high-risk chemical facility’s SSP/ASP is approved by DHS, the facility must continue to fully implement the security measures. DHS conducts inspections and/or audits at each of the CFATS covered facilities to review and approve security plans and to ensure facilities are continuing to fully implement the approved security measures.
It is important you check the list and check your inventory levels to determine whether you fall under this regulation and reporting is required. It is also important if you do fall under this regulation that you know your customers. See the following links, Report CFATS Violation Flyer 508 and Know Your Customer Final 2011.
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