27 May 2009 23:39 [Source: ICIS news]
HOUSTON (ICIS news)--At least three North American polyethylene (PE) producers have nominated a 3-cent/lb ($66/tonne or €47/tonne) increase for June, hoping to add to May price gains and further build margins, buyers and sellers said on Wednesday.
Dow Chemical will push for a 3-cent/lb June increase, upgrading initial plans for a 2-cent increase that was carried over from the previous month as a temporary voluntary allowance (TVA), a source at the company said.
Confirmation was not immediately available from the two other producers.
Sellers were adamant that 3-cent/lb May increases were firmly implemented amid strong export business to Asia and strengthening crude oil markets.
Buyers argued that US demand has not improved sufficiently to support price increases.
US domestic prices for high density PE (HDPE) blow moulding were 46-50 cents/lb DEL (delivered) during the week ended 22 May, according to data from global chemical market intelligence service ICIS pricing.
Other major North American PE producers include Chevron Phillips, Formosa Plastics, ExxonMobil, NOVA Chemical and Westlake.
($1 = €0.71)
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