01 June 2012 17:30 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene (PE) producer Dow Chemical announced it will implement a 6-cent/lb ($132/tonne, €107/tonne) increase on all PE resins, effective on 1 July, sources said on Friday.
The price increase replaces any previously announced price increases, according to a 30 May customer letter obtained by ICIS. A 7-cent/lb increase from April remained on the table after a flat settlement in April and a 7-cent/lb price decrease in May, sources said.
Many market participants scoffed at the announcement, which came in the midst of falling feedstock prices, including ethylene, which has seen prices fall by more than 40% over the past seven weeks.
Market sources are expecting another drop in June contract prices, but the magnitude of the decrease remains in question.
Sources said they saw the Dow announcement as an effort by the company to limit the amount that prices will fall in the coming months. However, one source said if prices fall by as much as 7 cents/lb in June, it is possible for prices to increase in July.
With the May decrease, prices for linear low density polyethylene (LLDPE) butene film were at 70-73 cents/lb DEL (delivered) ), low density polyethylene (LDPE) film prices were at 79-81 cents/lb DEL and high density polyethylene (HDPE) blow moulding prices were at 68-70 cents/lb DEL, for small volume buyers, as assessed by ICIS.
($1 = €0.81)
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