31 January 2014 19:56 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene (PE) producer Dow Chemical announced it will implement a 6 cent/lb ($132/tonne) increase on all grades of PE, effective 1 March, sources said on Friday.
The proposed 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.
Market sources are split about whether producers will be able to implement some or all of the 4 cent/lb increase announced for February.
Recent supply constraints, including announcement of a force majeure event this week by INEOS on high density polyethylene (HDPE), have some buyers saying the price increase is gaining traction.
However, other buyers said they are seeing plenty of material being offered in the secondary markets, which indicates that supplies are not so tight that an increase would be justified.
One buyer scoffed at the March increase notification, while others said it was probably an effort to support the February increase.
Current prices for LLDPE butene film were at 79-81 cents/lb DEL (delivered), LDPE film prices were at 88-90 cents/lb DEL and HDPE blow moulding prices were at 79-71 cents/lb DEL, for small volume buyers, as assessed by ICIS.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections