31 January 2013 23:04 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene (PE) producer Dow Chemical announced it will implement a 4 cent/lb ($88/tonne, €65/tonne) increase on all grades of PE, effective on 1 March, sources said on Thursday.
The announcement makes Dow the second PE producer to announce a March price hike, after INEOS announced a 4 cent/lb increase for all high density polyethylene (HDPE) resins, also for 1 March.
The Dow increase is in addition to previously announced price increases, including a 4 cent/lb price increase announced for 1 February, according to a copy of a 31 January customer letter obtained by ICIS.
The increase represents the third consecutive monthly increase to be announced by PE producers, including a 5 cent/lb January increase, which was fully implemented in the market.
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.
Sources said it is much too early to speculate about March increases, saying market dynamics could be much different.
Price for LLDPE butene film were at 70-73 cents/lb DEL (delivered), LDPE film prices were at 79-82 cents/lb DEL and HDPE blow moulding prices were at 68-71 cents/lb DEL, for small volume buyers, as assessed by ICIS.
($1 = €0.74)
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