March 3, 2021
As Chemline continues to gather information on the rapidly changing polyurethane raw material market, we remain committed to transparent communication regarding the market challenges facing the entire supply chain. Upstream feedstock suppliers are slowly beginning to restart facilities, with some Gulf Coast refineries and feedstock suppliers coming back online. The restart and ramping up of these world-scale facilities takes time. We are hopeful that the supply chain opens up in April.
Over the last week, Chemline has seen multiple confirmed raw material orders cancelled and more put in question. No raw material suppliers will confirm orders going forward until there is better visibility on upstream supply. Chemline’s existing inventories will allow for limited supply over the next few weeks. We are reviewing incoming orders daily and confirming amounts based on our on-hand raw material inventory. With the expectation that limited supply will become available in early April, we are pursuing all options to maintain supply through the second half of March including sparing no expense in acquiring raw materials through secondary channels. Separately, our R&D department is focused on reformulation options based on inventories on hand.
As we look forward to April, supply should begin to normalize but inflationary pressures will create a different set of challenges. Chemline is already seeing price increase announcements of 30-50% for April 1st across most raw material categories. Our commitment is to do all possible to keep you supplied through this crisis and for the long term — we will pass along only costs that we cannot absorb, and only on a temporary basis.
Chemline takes very seriously our commitment to supply our customer base reliably and fairly. All our time and resources are devoted to that commitment. Thank you for your partnership as we work through this unprecedented challenge.« Previous Post Next Post »