Europe transport issues cause PE delivery concerns
Linda Naylor
01-Jun-2016
LONDON (ICIS)–Transport strikes in France and Belgium are causing havoc with truck deliveries, sources said on Wednesday.
“Trucks are out of position,” said a trader. “All the lead times have gone wrong.”
A buyer said it was not sure whether expected deliveries that had to move through France would arrive on time.
“I have been told they [producer] is making my material, and getting it out of the plant,” said a buyer, “but they can’t guarantee anything after that.”
Much depended on which grades were being discussed.
Metallocene linear low density polyethylene (MLLDPE) was in tight supply, and Europe’s major producer, ExxonMobil, has production in France, at Notre Dame de Gravenchon.
Both ExxonMobil’s refineries in France were operating normally, and PE buyers have been told PE production is also normal.
Four out of five of Total’s refineries are off line, with the
fifth running at reduced rates.
France refinery strike status
Company |
Location |
Status |
Total |
Feyzin |
Offline |
Total |
Gonfreville |
Offline |
Total |
Donges |
Offline |
Total |
Grandpuits |
Offline |
Ineos |
Lavera |
Reduced Production |
ExxonMobil |
Notre Dame de Gravenchon |
Operating Normally |
ExxonMobil |
Fos-sur-Mer |
Operating Normally |
Total |
La Mede |
Reduced Production |
Source: UFIP
Total called force majeure on PE from France soon
after strikes hit, around 18 May. INEOS followed suit a few days
later.
Medium density polyethylene (MDPE) supply is also tight, and
seems to be the force majeure causing most concern to buyers.
PE demand was weaker than expected in May, and there has been nothing like the product shortages seen in 2015, even with strikes causing delivery problems.
PE is used in packaging, the manufacture of household goods and also in the agricultural industry.
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