LyondellBasell seeks October price increase on US PP
HOUSTON (ICIS)–LyondellBasell is seeking a price increase of 3 cents/lb ($66/tonne) on all polypropylene (PP) products sold in North America in addition to any changes in propylene monomer costs as of 1 October, according to a Thursday customer letter.
The letter said that specialty products might be subject to a different price increase.
PP supply has tightened significantly in the US market in recent months amid a number of unexpected production issues, with these issues being exacerbated by plant shutdowns occasioned by Hurricane Laura’s impact on the US Gulf Coast.
Spot supplies are extremely tight, with transactions for spot wide-spec cargoes currently being done well above contract price levels.
Demand has been trending higher in recent months as US manufacturing activity has moved back into expansionary territory following sharp reductions in activity during the initial months of the economic crisis set off by the coronavirus outbreak.
ICIS assessed August contracts for homopolymer PP injection at 50-54 cents/lb DEL (delivered) in bulk US while contracts block copolymer PP were assessed at 51-55 cents/lb with the same terms.
PP is used for packaging, ropes, carpets, plastic parts, loudspeakers and automotive parts.
Major US PP producers include Braskem, ExxonMobil, Formosa, INEOS, LyondellBasell, Pinnacle Polymers, Phillips 66 and Total Petrochemicals.
Thumbnail image shows items made of PP. Source: Al Greenwood