30 October 2012 01:43 [Source: ICIS news]
CHICAGO, Illinois (ICIS)--Contract negotiations are ongoing in the US polyethylene market, with market participants saying on Monday that recent ethylene cracker outages may lend support to proposed price hikes.
One buyer, speaking on the sidelines of the 2012 Pack Expo in Chicago, said demand is not strong enough to support proposed increases of between 3-5 cents/lb ($66-110/tonne, €51-85/tonne) for October contracts.
However, recent cracker outages have kept producers from being willing to drop the price increase proposals, the buyer said.
One producer last week agreed to push its proposed 5 cent/lb October increase to November.
However, sources said on Monday that so far, no other producers have followed that producer's move.
NOVA Chemicals had previously agreed to split its initial 5 cent/lb increase with 3 cents/lb in October and 2 cents/lb in November.
Sources said they expect negotiations to continue through the last day of the month.
If producers are succesful in implementing an increase, one buyer said it believes prices will fall immediately in November, when demand is even weaker.
The Pack Expo will continue through 31 October.
($1 = €0.77)
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