Sasol Chemicals USA has notified its Chinese buyers about cancellation for their high-density polyethylene (HDPE) orders, according to the company’s letter to customers seen by SSESSMENTS.COM. The letter, dated June 2, said that Sasol would not be able to meet the orders within a reasonable timeframe, citing reduced inventories and lost production due to supply chain disruptions (blank sailings, vessel delays, container availability) and unplanned downtime over April through May caused by the coronavirus pandemic.
Sasol also noted that its HDPE production unit will undergo 14-day maintenance in June, which will add to the difficulty to clear the order backlog in the near-term. As SSESSMENTS.COM noted, the cancellation affects 5,000 tons of HDPE ordered by Sasol’s clients in China. Sasol said that affected customers would be able to communicate with the company’s contact person regarding the cancellation.
