Dow announces 6 cent/lb increase for March PE

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.

 

By Michelle Klump