Feedstock and Product Price Volatility: Westlake Chemical's profitability is highly sensitive to fluctuations in the prices of raw materials like crude oil and natural gas, as well as finished products such as polyethylene and PVC.

Economic Cyclicality and Demand Fluctuations: Demand for Westlake's products, particularly in construction and durable goods, is cyclical and can be significantly impacted by global and regional economic downturns, reducing sales volumes and revenue.

Regulatory and Environmental Compliance Costs: Increasingly stringent environmental, health, and safety regulations can lead to higher operating costs, capital expenditures for compliance, and potential fines or liabilities for non-compliance.