29 January 2013 22:13 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene (PE) producer INEOS announced it will implement a 4 cent/lb ($88/tonne, €65/tonne) increase on all high density polyethylene (HDPE) resins, effective on 1 March, sources said on Tuesday.
The price increase for the HDPE material is in addition to previously announced increases, including one for 4 cents/lb effective on 1 February, according to a copy of 28 January customer letter obtained by ICIS.
It is not clear if other producers will follow suit with similar increases, sources said.
PE contract prices for January increased by 5 cents/lb, based on tight supply and increasing spot ethylene costs.
Market sources are split on whether producers will be able to implement some or all of the 4 cent/lb increase announced for February.
Some buyers have said they believe at least part of the increase may be implemented, based on ongoing tightness in the ethylene and PE markets.
Others have suggested weak domestic demand will help keep prices steady.
Price for linear low density PE (LLDPE) butene film are 70-73 cents/lb DEL (delivered), low density PE (LDPE) film prices are 79-82 cents/lb DEL and HDPE blow moulding prices are 68-71 cents/lb DEL for small volume buyers, as assessed by ICIS.
($1 = €0.74)
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