02 October 2013 21:17 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical has pushed back one month a proposed 5 cent/lb ($110/tonne, €81) price increase it planned for the October US polyethylene (PE) contracts, several market sources said on Wednesday.
Several market sources said they were contacted by telephone since early this week to be informed that the 5 cent/lb increase for October contracts was not going to be implemented this month but would be made effective in November.
The announcement came just after the PE September contract settlement when all grades of PE increased by 5 cents/lb from the previous month. The September increase was the first price change since only the high density polyethylene (HDPE) grades had moved by 2 cents/lb for the June contracts. The planned 5 cent/lb increase for November is the first price nomination for that month.
Dow and INEOS were the only two producers that had made announcements for October price increases in PE products.
Market sources said that after Dow's announcements, PE October prices appear set for a rollover from September. They will likely keep the 5 cent/lb increase from the September contracts but not increase more, sources said.
One source said that with other companies such as CP Chemical, ExxonMobil, Formosa, LyondellBasell, Nova not seeking price increases for October, Dow changed its plan to avoid being underpriced.
Dow officials did not confirm the information.
Following the September settlement, prices of linear low density polyethylene (LLDPE) butane film were at 79-81/lb DEL (delivered), low density polyethylene (LDPE) film prices were at 88-90/lb DEL and HDPE blow moulding prices were at 79-81 cents/lb DEL for small volume buyers, as assessed by ICIS.
($1 = €0.74)
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