28 March 2014 18:57 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene (PE) producer Dow Chemical announced on Friday it will split up a previously announced 6 cent/lb ($132/tonne) price increase over April and May for high density polyethylene (HDPE) and push the full increase to May for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE).
In a letter to customers obtained by ICIS, the company said HDPE grades will increase by 3 cents/lb effective on 1 April, with the remaining 3 cents/lb to be implemented on 1 May. The company said it would increase LDPE and LLDPE by 6 cents/lb effective on 1 May.
The proposed increases are based on “continued tightness of supply and sustained demand above planned levels”, according to the customer letter.
Several other producers have announced a 6 cent/lb price increase for 1 April. However, with supply improving and a few major producers not announcing an increase for April, many market participants have said they see little chance of those increases finding traction.
“There is no reason for PE to go up – there is plenty of it around,” said one buyer.
Current prices for LLDPE butene film were at 83-85 cents/lb DEL (delivered), low density PE (LDPE) film prices were at 92-94 cents/lb DEL and high density PE (HDPE) blow moulding prices were at 83-85 cents/lb DEL, for small volume buyers, as assessed by ICIS.
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