31 July 2012 20:46 [Source: ICIS news]
HOUSTON (ICIS)--At least two US polyethylene (PE) producers have announced a 5 cent/lb ($110/tonne, €90/tonne) price increase for all grades of PE effective on 1 September, sources said on Tuesday.
Dow Chemical and Formosa Plastics informed customers of the increases on Tuesday, according to copies of customer letters obtained by ICIS.
The increases are in addition to previously announced 1 August price increases, the letters state.
Dow had previously announced a 6 cent/lb increase for 1 August, but will reduce that increase to 5 cents/lb, the letter states. Several other producers, including Formosa, had previously announced a 5 cent/lb increase for 1 August.
"We are very serious about the 5 cent/lb increase in August," said one producer, who added it expects demand to remain strong enough to support both August and September price increases.
Other market participants were divided about the chances for the August and September price increases. Some buyers said they do not expect to see demand remain strong in July.
"When they start increasing prices, we [buyers] are going to slam on the brakes," the buyer said.
With the rollover, prices for linear low density polyethylene (LLDPE) butane film were at 63-66 cents/lb delivered (DEL), low density polyethylene (LDPE) film prices were at 72-74 cents/lb DEL and high density polyethylene (HDPE) blow moulding prices were at 61-63 cents/lb DEL, for small volume buyers, as assessed by ICIS.
($1 = €0.82)
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