05 May 2014 20:58 [Source: ICIS news]
HOUSTON (ICIS)--US polyethylene (PE) producer LyondellBasell announced on Monday it will implement a 3 cent/lb price increase for all grades of PE for 1 June and an additional 3 cent/lb price increase for all grades effective on 1 July.
LyondellBasell said the proposed increases will take the place of a 6 cent/lb increase originally announced for April that was never implemented, according to a copy of a customer letter obtained by ICIS. April prices settled flat in the US PE market.
The letter offers no reason for the proposed increases. It also does not make reference to May pricing.
Many buyers have been anticipating a price decrease in May or June on the assumption that typical weaker demand in the summer months will cause producer inventories to grow to the point that producers would lower prices to attract buying interest.
However, some sources have said that if global prices rise, activity in the export market could heat up and offer producers a relief valve for any extra inventory.
Prices in the US market have not fallen since November 2012. While prices historically fall in the summer months, production outages in 2013 tightened supply enough that producers did not lower prices last year.
April prices for LLDPE butene film were at 83-85 cents/lb DEL (delivered), LDPE film prices were at 92-94 cents/lb DEL and HDPE blow moulding prices were at 83-85 cents/lb DEL, for small volume buyers, as assessed by ICIS.
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