30 November 2011 20:14 [Source: ICIS news]
HOUSTON (ICIS)--US November contract prices for polyethylene (PE) were settled flat with October, based on weak domestic demand, sources said on Wednesday.
Producers had sought a 5 cent/lb ($110/tonne, €83/tonne) increase for the month – the same 5 cent/lb increase they have sought, without success, every month since May.
However, with ethane prices dropping, and buyers not wanting to build inventory at the end of the year, sources said there was little to support an increase.
ExxonMobil on Wednesday sent customers a letter informing them that the 5 cent/lb increase nominated for November would be pushed to December.
In addition, the 6 cent/lb increase nominated for December would be pushed to 1 January, the company said in a letter obtained by ICIS.
Other producers confirmed they were meeting competitive offers for a flat settlement.
With the rollover, prices for linear low density PE (LLDPE) butene film were at 66-69 cents/lb DEL (delivered), low density PE (LDPE) film prices were at 75-77 cents/lb DEL and high density PE (HDPE) blow moulding prices were at 64-66 cents/lb DEL, for small volume buyers, as assessed by ICIS.
Major US PE producers include Chevron Phillips Chemical, LyondellBasell, Dow Chemical, ExxonMobil, Westlake, INEOS, Total, NOVA Chemicals and Formosa.
($1 = €0.75)
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