El Niño risks are increasing, raising market attention on extreme weather such as heatwaves, heavy rainfall and flooding.
If high temperatures continue this summer, power demand in Asia may rise, supporting higher consumption of coal, natural gas and LNG. This could increase energy costs for chemical producers.
At the same time, China has entered its flood season. Heavy rainfall in southern China may affect port operations, chemical logistics, drainage systems and wastewater treatment facilities in industrial parks.
Overall, energy and chemical companies should closely monitor the impact of extreme weather on raw material transportation, plant operations and production costs.