19 June 2009 17:51 [Source: ICIS news]
HOUSTON (ICIS news)--US polyethylene (PE) producers announced they will seek an additional 8 cents/lb ($176/tonne, €127/tonne) in July, following price hike initiatives totalling 6 cents/lb in May and June, buyers said on Friday.
Spot ethylene for July traded at 27 cents/lb earlier this week, compared with May and June deals heard at 22.25 cents/lb a month earlier.
However, ethylene was offered on Thursday at 26.25 cents/lb, a drop from previous deals.
The question was how much, if any, of the 8-cent July PE increase could be implemented, the buyer said.
“They’re rolling the dice on a force majeure incident now that hurricane season is here. It’s just incredible,” the source said. So far there have been no hurricanes this year.
Other buyers agreed that producers would have little difficulty making the 3-cent/lb June increase hold.
However, sources predicted a big fight in July, especially given the magnitude of the increases sought by producers.
Participants said they would be watching for any signs of weakening in export volumes due to the emergence of new capacity in the Middle East and ?xml:namespace>
A trader said one
With the 3-cent June increase pending, US high density PE (HDPE) blow moulding resin was at 49-52 cents/lb DEL (delivered) for small-volume customers during the week ended 12 June, according to global chemical market intelligence service ICIS pricing.
Major US PE producers include Chevron Phillips, LyondellBasell, Dow Chemical, ExxonMobil,
($1 = €0.72)
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