South Africa PE producer in stock-building phase

23 January 2014 10:04  [Source: ICIS news]

LONDON (ICIS)--South Africa-based Sasol’s polyethylene PE plants in Sasolburg are operating and in a stock-building phase, a source at the company said late on Wednesday.

“On the LDPE supply situation, our plants are operating but we remain in a stock building phase at this time,” the source said.

“Stocks are at improved levels in comparison to Q4 2103, although certain grades may still be tight at times.”

This was in response to market reports of low density PE (LDPE) availability issues.

A distributor said: “People are scrambling for LD. Nobody is getting communications [regarding the shortages].”

The distributor added that people ordering 33-tonne truckloads of LDPE are only getting 8-11 tonnes.

“It’s an availability issue," the distributor said.

The producer said: “We are fulfilling customer orders to a monthly forecast. Where customers may not be receiving full order volumes, this is probably not only related to a supply issue [where immediate grade supply may be tight], but may also be an issue that customer credit facilities may have been exceeded.”

By: Jo Pitches
+44 208 652 3214

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