Market and product
PE supply issues cause 'chaos' in South Africa
LONDON (ICIS)--The South African polyethylene (PE) market is extremely short of high density polyethylene (HDPE) and also short of low density polyethylene (LDPE) because of issues following a domestic producer’s maintenance, market sources said on Wednesday.
With the traditional high season in October and November, a supply shortage is having a serious impact.
“We're hanging on for dear life,” a distributor said. “It’s absolute chaos and panic. HDPE, there is nothing [available]. LD, most of the grades there's nothing [available]. Pretty soon LLDPE will be affected as well.”
A trader said: “There’s a hole in supply until [the producer] sorts out the problems. October and November are in the middle of the high season. There’s nothing we can do. Everything is in limbo.”
The problems are said to stem from contaminated feedstockl ethylene from the plant in question.
The producer concerned was unable to comment.
It is thought that production at the plant in question may be resumed from 4 October.
