Global oversupply, uncertain demand, and tough cost structures are reshaping the chemical industry, leaving many companies facing unprecedented challenges. John Stekla, Director at Parin Resources, joins host Victoria Meyer for a frank conversation about the realities facing chemical producers, traders, and buyers as the industry moves into 2026. They examine the drivers of margin compression, how U.S. and global players are making difficult operational choices, and why even the industry’s cost advantages aren't a guaranteed ticket to success.

Victoria and John also discuss shifting strategies among buyers and sellers, the implications of recent structural changes and plant closures, and how companies are preparing for what could be several more years of pressured results. Despite the near-term headwinds, John underscores the long-term value of the U.S. cost position and the cycles that have always defined chemical markets, sharing practical insights for leaders seeking to navigate uncertainty and position their businesses for the future.

Additional Links:

Conversations On The Propylene And Olefin Market With John Stekla

The State Of The Petrochemical Industry Post Hurricane Ida With John Stekla

Victoria examines the following topics:

Global chemicals face excess supply, flat demand, and rising competition.
Companies are focusing on efficiency and cost-cutting to survive shrinking margins.
The industry is restructuring with asset shutdowns and tough make-or-buy decisions.
U.S. cost advantage persists, but fuels new competition as exports rise.
Lessons from past cycles highlight the need for readiness and adaptability.

Killer Quote: "The bright and shiny thing really is ... the cost position that can't be reproduced anywhere in the world ... That puts us in a great position to take advantage of the demand when it bounces back. And it will, without a doubt. We're always in cycles and you could argue it's an eight or ten year cycle, but we've been through this before and we're in a very strong position to weather it." — John Stekla

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