03 September 2010 19:36 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene (PE) export prices have risen by as much as 5 cents/lb ($110/tonne, €86/tonne) for September shipment as producers entered the month with low inventories, traders said on Friday.
Trading volumes were low, however, and there was some question as to whether the higher prices could be sustained.
“I don’t see it being that robust, you can buy product cheaper in Europe,” a trader said. “We’re sitting on our hands, not pulling the trigger on anything.”
Another source said it was more likely that producers would hold their initial pricing stances because they had little inventory to export.
Several traders said they were concentrating their buying activity in Asia, where export prices to Latin America were about the same as from the US Gulf.
US linear low-density PE (LLDPE) butene film was at 55-57 cents/lb FOB (free on board) US Gulf in bags, according to traders.
A major supplier claimed to be selling material for export at 57 cents/lb FOB in railcar.
Low-density PE (LDPE) film availability was almost nonexistent, but traders pegged railcar prices at 72-74 cents/lb FOB.
By comparison, a trader said LLDPE butene was purchased from overseas for export to Latin America at 53.5 cents/lb FOB in bags.
LDPE was available at 57 cents/lb FOB in bags, the source said.
Major North American PE producers include Chevron Phillips, LyondellBasell, Dow, ExxonMobil, Westlake, INEOS, Total, NOVA and Formosa.
($1 = €0.78)
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